State Issues: Michigan—Tax on Services
Last Updated: August 14, 2008
Overview:
As state governments search for ways to fund significant budget deficits, many have proposed imposing a sales tax on a wide range of services, including investment counseling and brokerage services.
Position:
SIFMA strongly opposes proposals to tax investment counseling and brokerage services.
Status:
On December 1, 2007—the day the tax on services took effect--the Michigan state legislature voted to repeal the six percent sales tax on services, and Michigan Governor Jennifer Granholm signed the repeal bill (PA 145/2007) the same day. There is no tax liability for the portion of the day that the tax on services was in effect. In October, Michigan had extended its six percent sales tax to services, including investment advice and management consulting, effective Dec. 1. SIFMA strongly opposed the extension of the tax to services.
