Welcome to the latest edition of Throwback Thursday. This week, we take a look at the legislative accomplishments of the House Tax Policy Committee. In the past, the Tax Policy Committee has worked to make major changes to the tax system to help Michigan residents and small business prosper, as well as participate in Michigan’s turnaround.
The committee approved a number of important pieces of legislation including:
Personal Property Tax Reform
- The Personal Property Tax (PPT) once required businesses to pay taxes on equipment annually in addition to the initial sales tax, which harmed business investment and growth. The committee’s bills—with the help of voter-approved Proposal 1—will ensure funding for local government to replace revenue originally generated by the PPT during and after the gradual PPT phase out.
Sales Tax on the Difference
- After years of work, the committee reformed sales and use tax to eliminate unnecessary taxes on Michigan consumers trading in vehicles. The value of the trade in is no longer taxed when offered as partial payment for cars, boats and RVs.
Offer in Compromise
- The bill allows Treasury to establish an Offer in Compromise program to essentially settle outstanding tax liability issues, permitting taxpayers to dispute the amount they owe and make an offer to settle the case. With compromise, Treasury can make efforts to collect portions of outstanding taxes revenues that otherwise would remain uncollected.
Disabled Veterans Property Tax Exemption
- Legislation was passed which provided for a property tax exemption for disabled veterans, who paid significantly in their service to our county.
Corporate Officer Liability
- The committee adopted legislation — PA 3 of 2014 — that was aimed at reining the Department of Treasury and its corporate tax practices by protecting innocent persons who were officers of a corporation in name or title only and not responsible for the tax debt accrued by the corporation when others were in charge.
- The committee enacted several pieces of legislation aimed at limiting the Department of Treasury’s ability to unfairly audit taxpayers, including bills to clarify the Taxpayer Bill of Rights and requiring timely audits by agencies like the Treasury.
There are many additional bills that the Tax Policy committee will be considering before the end of the legislative term that will continue to work toward a brighter future for Michigan’s families and small businesses.