SBT - February 14, 2004 List of Services to Be Taxed
The Michigan Department of Treasury released a list of the services that will be subject to a new 2% excise tax under the Governor's Tax Restructuring proposal. The list includes notation of the number of states that tax the services listed. Two interesting notes. The list does not differentiate between those states that tax these services under a sales tax and those that include these services as taxable under the state's general excise tax that applies to all businesses. For example, Washington subjects numerous services to its business and occupations tax but this tax is the general business gross receipts tax and is not an substitute sales tax on these services. Second, while some states tax some of these services, Michigan would be the first state to tax all of the enumerated services. Maybe being first isn't always the best.