A bill to amend 1933 PA 167, entitled “General sales tax act,” by amending section 1 (MCL 205.51), as amended by 2023 PA 20.
The bill primarily aims to refine definitions and provisions related to sales tax, including the terms "person," "sale at retail," "gross proceeds," and "sales price." It specifies what constitutes a sales price, including various costs and charges, and delineates exclusions such as interest, financing charges, and certain taxes. Notably, the bill introduces a retroactive provision for credit card surcharges, ensuring they are excluded from the sales price for all periods open under the statute of limitations.
The legislation mandates the Department of Treasury to cancel outstanding balances related to delivery and installation charges on notices of intent to assess and final assessments issued before April 26, 2023. This cancellation must occur by July 25, 2023. Additionally, the department is prohibited from issuing new assessments for these charges for any tax period before April 26, 2023, that remains open under the statute of limitations.
The bill impacts various stakeholders, including businesses and consumers, by clarifying tax liabilities and potentially reducing tax burdens related to delivery and installation charges. It also affects the Department of Treasury's administrative processes, requiring adjustments to compliance and enforcement practices. The retroactive application of certain provisions may benefit taxpayers by providing clarity and potentially reducing past tax liabilities.
Introduced
by
Referred to the Committee on Tax Policy
