Introduced by Rep. Steve Bieda (D) on August 8, 2007, to retroactively change some definitions in the Use Tax Act (related to who is a "taxpayer" for purposes of claiming a bad debt deduction) that will have the effect of reversing the judgement of the Supreme Court in the case "DaimlerChrysler Services North America, LLC v. Department of Treasury," under which the state will be required to honor $93 million in tax refund claims. The bill would also result in an additional $30 million in annual use tax paid by business in the future.
Referred to the House Tax Policy Committee on August 8, 2007.
Substitute offered by Rep. Steve Bieda (D) on September 24, 2007, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed by voice vote in the House on September 24, 2007.
Passed 22 to 16 in the Senate on September 30, 2007, to retroactively change some definitions in the Use Tax Act (related to who is a "taxpayer" for purposes of claiming a bad debt deduction) that will have the effect of reversing the judgement of the Supreme Court in the case "DaimlerChrysler Services North America, LLC v. Department of Treasury," under which the state will be required to honor $93 million in tax refund claims. The bill would also result in an additional $30 million in annual use tax paid by business in the future. Who Voted "Yes" and Who Voted "No"
Signed by Gov. Jennifer Granholm on October 1, 2007.
1) Sore Losers by Anonymous Citizen on September 25, 2007 So you write a tax law that the Taxpayer follows to a T and when the Supreme Court says pay up, you want to change the rules retro-actively.
Not bad, you just make up the rules as you go along and screw a company who just spent a fortune fighting you all the way to the Supreme Court over a law that YOU wrote.
Yea! I want to do business in Michigan, sure I do.
2) More to come by Anonymous Citizen on August 15, 2007 Plan on lots of unintended consequences from the new, even more complicated business tax. Reply
3) 2007 House Bill 5096 (Revise “deferred assets” taxation under new state business tax) by admin on January 1, 2001 Introduced in the House on August 8, 2007, to retroactively change some definitions in the Use Tax Act (related to who is a "taxpayer" for purposes of claiming a bad debt deduction) that will have the effect of reversing the judgement of the Supreme Court in the case "DaimlerChrysler Services North America, LLC v. Department of Treasury," under which the state will be required to honor $93 million in tax refund claims. The bill would also result in an additional $30 million in annual use tax paid by business in the future
The vote was 56 in favor, 52 opposed and 2 not voting