Services Tax Repealed; MBT Surcharge Imposed
The services tax was retroactively repealed today as of its effective date by early morning action of the Senate, quick approval by the House and late afternoon signature of the amended HB 5408 by the Governor. Revenues from the services tax will be made up through imposition of a 21.99% surcharge on the tax liability under the Michigan Business Tax. Surcharge liability for any single taxpayer is capped at $6 million. Personal investment income was also excluded from the gross receipts and business income tax bases. A more thorough review of this new legislation will be forthcoming in a Tax Alert.