The MACPA has received considerable member feedback regarding the expansion of Michigan’s use tax to include various business and personal services. The purpose of this message is to give you an update regarding actions in Lansing and the MACPA’s involvement.

First, it is important to note that the MACPA is supportive of efforts to eliminate the expansion of the Michigan use tax to services. We have communicated this position to the Department of Treasury through meetings with State Treasurer Robert Kleine and other Treasury officials. We have also scheduled meetings with leadership in both the Senate and House of Representatives to ensure their understanding of the MACPA’s position.

With all of that said, MACPA is committed to making sure members are prepared with the information to properly counsel their clients and advise their employers.

While the debate regarding partial or complete elimination of the new tax continues, efforts are also afoot within the Administration and the Legislature to address unintended consequences and provide clarity within the existing statute. The MACPA is actively engaged in these efforts, having communicated many issues to all policy-makers through comprehensive summaries on administrative concerns and the ambiguity of the statute’s reference to NAICS codes.

Just this weekend, the Department of Treasury released initial information regarding the implementation of this law through a web page on explanation of services taxed and other resources. The MACPA has a special Task Force of sales and use tax experts that will be reviewing this guidance in coming days.

We hope that this communication serves to provide clarity regarding MACPA’s efforts, the current status of available information, and further, MACPA’s commitment to ensuring members’ interests continue to be represented in Lansing and all members are armed with the information necessary to succeed.

The MACPA has devoted a portion of the MACPA web site to communicating pertinent information to members and will update it regularly. Please call 248.267.3700 or email legislation@michcpa.org with any questions or comments.



Sincerely,

Peggy A. Dzierzawski, CAE
President & CEO