Michigan House Republicans
Rep. Thompson spearheading tax changes to help Main Street save
RELEASE|March 16, 2023

Legislator’s plan paves way for needed relief

State Rep. Jamie Thompson today voted to secure tax and cost savings for hard-working small business owners throughout Michigan.

“The burdens and hurdles small businesses throughout Michigan have faced these past few years have been overwhelming,” said Thompson, of Brownstown. “These vital parts of our communities have been impacted severely by skyrocketing costs and government overreach. It’s time to give our local job providers needed tax relief and clarity.”

The advancing legislation exempts delivery and installation from sales tax. Oftentimes, when the Department of Treasury audits retailers, it concludes they must pay sales and use taxes that were not collected on delivery and installation. In some cases, this has forced retailers to appeal audit findings in court because they believe they followed proper procedures to ensure their services would not be subject to these taxes.

House Bills 4039, 4137 and 4253 shore up this vague and inconsistent application of taxes that has burdened local businesses.

Additionally, equipment used for industrial processing is exempt from sales and use taxes, but small businesses that produce aggregate materials such as gravel, sand and other things people use every day have still been penalized by Gov. Gretchen Whitmer’s administration. A pair of bills approved by the House today, including Thompson’s House Bill 4055, offer clarity so there are no longer these types of disputes levied by the state – which lead to cumbersome processes for job providers.

Both pending legislative packages require Treasury to drop pending action against these businesses

“I remain committed to cutting taxes for workers, families and small-business owners across our region,” Thompson said. “These are common-sense solutions that will help people keep more of what they earn and the broad bipartisan support they enjoyed today reflect that.”

The legislation now moves to the Senate for consideration.

PHOTO INFORMATION: State Rep. Jamie Thompson, of Brownstown, speaks on House Bill 4055 before the Michigan House on Thursday, March 16. The plan provides local businesses with clarity to avoid disputes with the Department of Treasury over sales and use taxes.

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