Michigan Proposes Sales Tax Changes

Tax increaseMichigan– Voting in May 2015 could bring various changes to the sales tax structure in Michigan.  The bill, already passed in the House and the Senate, is now being put to Michigan residents themselves.

The bill proposes increasing the sales tax rate from 6% to 7%, lowering the sales tax on fuel, and increasing the funding that is directed to roads and schools.

There are additional bills that will take effect if voters approve the ballot.  These would increase registration fees across the board, but especially for electric and hybrid owners.  The bill would also adjust the flat tax of gasoline and diesel to increase as the wholesale price of fuel increases.

As Senate Majority Leader Randy Richardville explained, the message he is getting from residents is to just fix the roads.  The increased taxes outlined above would generate an additional $1.2 billion for the transportation fund.

There are additional bills in the works not tied to the main ballot.  One such bill would require online retailers, such as Amazon, to collect sales tax on purchases in the state.  It is estimated that change will generate $50 million in revenue.

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