2010 House Bill 5810

Expand sales tax to services

Introduced in the House

Feb. 16, 2010

Introduced by Rep. Alma Smith (D-54)

To expand the sales tax to include consumer services, and reduce the sales tax rate to 5.5 percent. Reportedly the net effect of these changes would be to extract $900 million more from taxpayers (other reports suggest $1.3 billion). Gov. Jennifer Granholm has proposed this measure in combination with a business tax that would be phased in gradually, resulting in a temporary tax increase of some $875 million (or more) over two years.

Referred to the Committee on Tax Policy