2007 Senate Bill 838

Repeal 6 percent service tax

Introduced in the Senate

Oct. 18, 2007

Introduced by Sen. Nancy Cassis (R-15)

To repeal the new 6 percent tax on many personal and business services (<a href="http://www.michiganvotes.org/2007-HB-5198">House Bill 5198</a>) passed to avoid spending cuts in the Fiscal Year 2007-2008 budget. The service tax is expected to levy some $750 million in new taxes annually, at least two-thirds of which is imposed on business-to-business services.

Referred to the Committee on Finance

Nov. 7, 2007

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Substitute offered

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

Amendment offered by Sen. Michael Prusi (D-38)

To tie-bar the bill to House Bill 5408, meaning this bill cannot become law unless that one does also. HB 5408 is a "vehicle" bill for raising the rate of the Michigan Business Tax (or adding a surtax to it) as a means of eliminating the service tax without cutting any government spending.

The amendment failed 16 to 21 (details)

Passed in the Senate 23 to 15 (details)

Received in the House

Nov. 7, 2007

Referred to the Committee on Tax Policy