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Last updated 1:25AM ET
March 5, 2021
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Senate Votes to Kill Service Tax
(2007-11-07)
(wgvu) - LANSING, Mich. (AP) - The Michigan Senate has voted to repeal a
tax on more business services set to take effect December First.
Republicans who control the Senate support the bill as a step
forward.
But Democrats say they can't back it unless the lost tax revenue
is replaced because the money is part of a deal to balance state
government's budget.
The 6 percent sales tax on more services such as consulting and
landscaping appears likely to die before it ever takes effect.
But Governor Granholm says an alternative must be found to
replace the 614 million dollars it would bring in this fiscal year
to support schools and other services.
Businesses say the tax is confusing and is unfair because it
taxes some services but not others.
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