Senate OKs Services Tax Repeal and MBT Surcharge
November 20, 2007November 20, 2008. The Senate passed a revised version of HB 5408 replacing the sales tax on services with a temporary business tax surcharge. The Senate changes cuts the surcharge that the House passed from 32.9 percent in the first year to 13.85 percent, and lifts the cap on taxes any one company is required to pay from $2 million to $7.5 million, but also will create a potential tax cut for businesses. The measure also sunsets the surcharge in 2011. We can expect a conference committee to meet to resolve the differences between the two versions the week of the 26th.