Michigan poised to exempt sales tax on delivery, installation services

Michigan poised to exempt sales tax on delivery, installation services
House Minority Leader Matt Hall speaks with reporters after Gov. Gretchen Whitmer's State of the State address on Jan. 25. Hall helped to negotiate a deal under which the Legislature will exempt delivery and installation charges from the sales tax. <strong> Credit Michigan House Republicans </strong>

Michigan is poised to stop taxing delivery and installation services if they are separately stated on the invoice following a legislative deal to authorize $1.3 billion in new spending.

The agreement will benefit companies and customers that pay an estimated $60 million in sales and use taxes annually on delivery and installation if the fees are “incurred” before buyers take ownership of items.

Supporters say the bills would address confusion within the current tax code and stop what business groups contend are an increasing number of state Department of Treasury audits dinging unwitting furniture businesses and other companies for taxes they did not know were owed.

Read the full story from Crain’s Detroit Business.