Taxation: other; reporting estimate of amount of use tax forgone; modify to reflect change in use tax act. Amends sec. 6 of 1979 PA 72 (MCL 21.276). TIE BAR WITH: HB 4040'23
The implementation of SB0102 is expected to have significant implications for state reporting practices. By mandating that the governor includes estimations of revenue lost from tax exemptions, the bill promotes greater fiscal accountability. It prescribes a standardized approach for the reporting of tax exemptions, which can help the legislature make more informed decisions regarding state fiscal policies and budget allocations. The emphasis on transparency in fiscal matters may also enhance public trust in state governance.
Senate Bill No. 102, also referred to as SB0102, seeks to amend 1979 PA 72, which requires the governor of Michigan to provide specific tax information within the annual budget message to the legislature. The bill amends section 6 of this act to require the governor to provide a detailed estimate of the amount of tax foregone due to exemptions granted under the Use Tax Act. This change aims to ensure transparency and clear accountability regarding tax exemptions that affect state revenues.
While the bill is intended to offer clearer fiscal insight, it may raise questions about the adequacy of tax exemptions currently in place. Critics could argue that the requirement for detailed reporting may expose potential inefficiencies or inequities in the state's tax structure. The efficacy of such reporting could also be debated, particularly whether it will lead to meaningful changes in tax policy or simply serve as a bureaucratic requirement without tangible benefits.
SB0102 is tied to House Bill No. 4040, meaning its enactment is contingent upon that bill being law. This relationship suggests that there may be a broader set of reforms or amendments aimed at overhauling aspects of tax policy or state revenue management. The connection to other legislation indicates an effort to pursue comprehensive tax reform rather than isolated adjustments.