An act to amend 1933 PA 167, entitled “An act to provide for the raising of additional public revenue by prescribing certain specific taxes, fees, and charges to be paid to the state for the privilege of engaging in certain business activities; to provide, incident to the enforcement thereof, for the issuance of licenses to engage in such occupations; to provide for the ascertainment, assessment and collection thereof; to appropriate the proceeds thereof; and to prescribe penalties for violations of the provisions of this act,” by amending sections 1 and 25 (MCL 205.51 and 205.75), section 1 as amended by 2018 PA 2 and section 25 as amended by 2021 PA 108.
House Bills 4039 and 4253 respectively amend the General Sales Tax Act and the Use Tax Act to exempt certain delivery and installation costs from inclusion in the sales price (in the Sales Tax Act) and purchase price (in the Use Tax Act) on which the taxes are based. Specifically, under the bills, sales and use taxes are not imposed on delivery or installation charges if those charges are separately stated on the invoice, bill of sale, or similar document provided to the purchaser and the seller maintained its books and records to show separately the transactions used to determine the tax levied by the applicable act. (However, this does not apply to charges for delivery of gas or electricity by a utility.)
Co-sponsored by Reps.
Referred to the Committee on Tax Policy
Reported with substitute H-1
Substitute H-1 concurred in by voice vote
Passed in the House 85 to 19 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
Referred to the Committee of the Whole
Reported without amendment
Passed in the Senate 35 to 1 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
