Use tax: exemptions; delivery and installation; exempt from use tax. Amends secs. 2 & 21 of 1937 PA 94 (MCL 205.92 & 205.111).
Impact
The implications of this bill on state laws center around the treatment of delivery and installation charges in relation to the excise tax. Under the amendments, specific provisions will no longer allow for tax assessments on these charges retroactively, which aligns the tax reporting and assessment processes more transparently for businesses engaged in sales involving tangible personal property. The anticipated outcome is a more equitable tax burden among consumers while easing the compliance complexity for sellers and service providers.
Summary
House Bill 4253 seeks to amend the 1937 Public Act 94 regarding the levy, assessment, and collection of a specific excise tax applied to the storage, use, or consumption of tangible personal property and certain services in Michigan. The bill modifies sections of the existing statute to clarify the definitions related to this excise tax and adjust the provisions surrounding delivery and installation charges for certain items. Its passage is positioned as a mechanism to ensure that tax regulations are current and more straightforward for taxpayers and tax administrators alike.
Sentiment
The general sentiment surrounding HB 4253 appears to be supportive among lawmakers who see value in clarifying tax regulations and easing the burden for both the state treasury and citizens. However, there may be opposition from some quarters concerned about the implications of such tax adjustments, particularly regarding local businesses that deliver and install goods, as they could face challenges in adapting to the changes. Overall, the legislative discourse suggests a commitment to improving tax efficiency while protecting revenue interests.
Contention
A notable point of contention regarding HB 4253 seems to stem from the specifics of how the delivery and installation charges are treated under the tax code. Some stakeholders may view the amendments as favoring certain businesses over others, primarily those that rely heavily on installation and delivery as part of their sales models. The possible elimination of past assessments may raise questions about lost revenue for local governments and state funds, leading to resistance among financial officials concerned about overall tax equity and fairness.
Use tax: exemptions; offset of the trade in value of personal electronics; provide for. Amends sec. 2 of 1937 PA 94 (MCL 205.92). TIE BAR WITH: HB 4376'25