SSTP and MBT Bills in Committee: Sales Tax on Services Credit Enacted
January 18, 2008January 18, 2008. On Wednesday, the House Tax Policy Committee, heard testimony on a package of bills aimed at adopting changes made to the Streamlined Sales Tax Agreement, which is an agreement between several states aimed at standardizing and simplifying sales tax collection, and targets internet and catalogue sales. Michigan is one of about 20 states that are members of the Agreement. The package of bills would update definitions regarding automobile transactions, telecommunications and durable medical equipment.
On Thursday, the Senate passed two bills granting a tax credit to businesses for expenses incurred in preparation to carry out the requirements of the repealed use tax on services. The Senate Fiscal Agency Analysis stated that the bills could cut revenues by $75 million to $900 million. The Senate Finance Committee took testimony on bills to amend the MBT.