Commonsense changes will make Michigan a better place for business
The Michigan House approved a bipartisan-supported plan Thursday to improve Michigan’s tax codes that was spearheaded by state Rep. Greg VanWoerkom, Republican vice chair of the House Tax Policy Committee.
The plan makes necessary clarifications to inconsistent sales and use tax laws that have proved to be confusing and cumbersome for retailers throughout the state.
Recent audits from the Department of Treasury decided that businesses must pay sales and use taxes that were not collected on delivery and installation. Businesses that believed they followed proper procedures were then forced to either pay sales and use tax or take the state to court.
VanWoerkom said sales and use tax should only be applied to the purchase of the tangible goods and not the services related to that purchase.
“Our existing tax laws are creating an unfair environment for both businesses and consumers,” said VanWoerkom (R-Norton Shores). “This plan will fix our broken system and ensure the state can no longer use vague statutes to target businesses.
Additionally, equipment used for industrial processing was thought to be exempt from sales and use taxes under the industrial processing exemption, but the state’s treasury department under the Whitmer administration has exploited vague laws to penalize small businesses that produce aggregate materials used in road construction.
“The bipartisan support this plan received proves that Republicans and Democrats alike agree we need to remove these costs and barriers for Michigan businesses,” VanWoerkom said. “I am hopeful this plan continues to move swiftly through the process to deliver relief sooner than later.”
House Bill 4137 passed the House with an 85-18 vote, while HB 4054 passed the House with an 80-23 vote. The measures now move to be considered by the state Senate.
Rep. VanWoerkom voted against the state budget proposal brought forth by House Democrats Wednesday, which he said drains the state’s multibillion-dollar surplus, creates new, unnecessary programs, and neglects the most essential needs in Michigan communities.
A bill introduced by Rep. Greg VanWoerkom (R-Norton Shores) protecting victims who are providing their impact statements during the justice process, was approved today by the state House.
Presently, a victim that is physically or emotionally unable to make an impact statement may designate an adult to do so on their behalf, but the victim must still be present in the courtroom to make a personal statement. This can require victims to relive what is often a traumatic event in the presence of their abuser. By appearing remotely, a victim of domestic or sexual violence can share their impact statement from somewhere that is safe and away from their abuser.
Rep. Greg VanWoerkom’s plan to provide crucial tax cuts for small businesses throughout Michigan is now state law.
House Bill 4054, now Public Act 30 of 2023, amends the state tax code to clarify that equipment used for industrial processing to produce aggregate materials such as gravel, sand, recycled concrete and other critical construction materials is exempt from sales and use tax.