UPDATE Oct 25: Carol of ArborLaw.com writes:
I actually have the entire list of services descriptions covered by the law, on my blog at Arborlaw.com. When the law came out, I cross-referenced the NAICS codes (which are incorporated into the new law specifically by reference) with the section numbers from the bill and the expected new numbers for sections in Michigan Compiled Laws. If you want to see this to determine whether your business services are covered, go to http://arborlaw.com/blog/services-tax. (it’s a big list!)
Political analyst George Weeks writes that in decades of following how Lansing deals with financial crisis, I have never seen enactment of such a bizarre, crazy quilt, irrational, inexplicable, unfair and â€” most of all, confusing to taxpayers â€” tax.
Crain’s Detroit Business goes further, calling this The best tax plan lobbyists can buy. Law and accounting services are not taxed, but the broad category of management advice, strategic planning and financial planning and budgeting will be taxed. Hmmm. So a company buying consulting services to help it keep its doors open is making a â€œdiscretionaryâ€ purchase?
Like many in Michigan, we’re wondering which of the services we provide like online publications (probably not), internet consulting (probably so) or graphic design & marketing (who knows??!!) would be subject to the service tax.
Assuming that movements to repeal or change the tax fail, mLive’s blog gives some idea of what services might be subject to the tax come December 2007. The nebulous “consulting services” is made a whole lot clearer when you click over to see businesses classified under 5416 Management, Scientific, and Technical Consulting Services. It’s surprising to find that in addition the list includes items that are absolutely essential to the development of new businesses in Michigan like site selection, start-up consulting, marketing, and a host of science and technical services.
We invite you to add your thoughts, comments and suggestions for making some sense out of what looks like a fiscal nightmare for Michigan.