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.
“The economic programs put forth by the governor today prove that jobs aren’t growing in Michigan, and Democrat policies passed this year are to blame. They have stripped away the fundamentals of low energy costs, competitive tax structure, and available talent.”
“Michigan residents, by way of local governments, should have a say in what goes on in their communities,” VanWoerkom said. “This deliberate attempt by House Democrats to silence their voices will inhibit locals from holding people accountable for the impact that solar and wind projects have on the local environment, economy, and quality of life.”
The Michigan House of Representatives today approved a plan to create the Research and Development Tax Credit program. State Rep. Greg VanWoerkom, the Republican vice chair of the House Tax Policy Committee, has been championing the new program and leading the push to finalize it since the beginning of the term. “This new program will […]
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.