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HB 6069

Use tax: collections; tax on certain services; impose. Amends secs. 3 & 21 of 1937 PA 94 (MCL 205.93 & 205.111) & adds sec. 3d.

2023-2024 Regular Session Introduced by Felicia Brabec and 12 co-sponsors

Michigan bill expands use tax to cover certain services, broadening the tax base and potentially increasing revenue while shifting costs to consumers and businesses.

bill electronically reproduced 11/12/2024
#usetax:collections #usetax:distribution
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WeVote Research Nonpartisan
Bill Summary · HB 6069

Legislative bill overview

HB 6069 amends Michigan's Use Tax Act to expand the tax base by imposing use tax on certain previously untaxed services. The bill modifies sections 3 and 21 of the 1937 Public Act 94 and adds new section 3d to define which services become subject to use tax collection and assessment.

Why is this important

Use tax expansion directly affects consumer costs and business operations by broadening what transactions are taxable. This represents a potential revenue increase for Michigan state government while shifting the tax burden to consumers purchasing previously untaxed services. The specific services targeted remain undefined in the bill summary, making actual impact unclear without the full text.

Potential points of contention

  • Service definition ambiguity: The bill doesn't specify which services become taxable, creating uncertainty for both businesses and consumers about compliance requirements and cost impacts
  • Regressive impact concern: Use tax expansions typically fall more heavily on lower-income households, as they spend larger portions of income on taxable goods and services
  • Business compliance burden: Service providers must implement new tax collection systems, potentially creating administrative costs and complexity, particularly for small businesses
  • Competitive disadvantage: Taxing services may disadvantage in-state service providers against untaxed alternatives or out-of-state competitors

Compiled from official sources — confirm details with the bill’s official record.

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