Michigan REPEALS Service Tax
On December 1, 2007, Governor Granholm signed HB 5408 into law. The law essentially repeals the controversial service tax passed in October and creates a Michigan Business Tax surcharge that is part of a compromise budget solution. Massage therapists, regardless of the setting in which they work, will not have to charge a service tax on massage.
The Michigan Business Tax directs that a taxpayer, other than an insurance company or financial institution, whose apportioned or allocated gross receipts are less than $350,000.00, does not need to pay the tax imposed under the Michigan Business Tax.
Unless your income exceeds $350,000, this tax surcharge does not affect you.
Additional questions and an online Michigan Business Tax "estimator" can be accessed at:
http://www.michigan.gov/taxes/0,1607,7-238-46621-169398--,00.html