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New Michigan Service Taxes

Discussion in 'Business Fundamentals' started by brunosplace, Oct 2, 2007.

  1. brunosplace

    brunosplace Senior Member
    Messages: 282

    All of us here in Michigan have been hearing about the possibility of having to charge sales tax on services for awhile now. As part of the state budget settlement they are now requiring certain service businesses to collect the 6% sales tax. In todays Detroit Free Press was a list of taxed businesses. I see in the list that Commercial landscaping is listed, does that cover only landscaping on commercial properties, or does it mean any landscaping services performed by a contractor, such as snowplowing, lawn mowing, retaining walls, etc?

    Anybody have a good interpretation of this yet?
  2. Crash935

    Crash935 2000 Club Member
    Messages: 2,377

    Yup, pretty much anything that falls under the landscape/landscape maintance area.
  3. lawnmasters2006

    lawnmasters2006 Senior Member
    Messages: 215

    stupid u ask me....gezz....wht else make us go broker than we are livin in this stats w her running it....:dizzy:
  4. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Does anyone have a link to the Detroit news article?

    Is the tax going to be on just the labor? Just the profit? Will it be on the expenses like gas, materials? Will it be on the total bill?

    Lets see. I already pay taxes on my employees income. I pay taxes on the profit, because it is my income. I pay taxes on the gas and/or materials when I buy it. Sounds to me like double dipping.

    Is she going to take away our requirement to pay taxes when we buy the gas and/or materials? Then have us pay taxes on the total bill?

    We now have to raise our prices to cover the tax. Take the time to re-bill everyone. Take the time to keep track of all the money coming in. Then remember to send it to her probably every quarter.

    How many commercial landscapers are not going to do this either because they don't know about it or refuse to. There are a bunch of laws that I didn't know about until reading trade mags, and being a member of Plowsite and Lawnsite. There are probably a bunch I still don't know about.

    Is there going to be a minimum income level that won't have to pay it? Like the business tax she got rid of didn't effect me because I didn't make enough. I would hate to fudge my income taxes just to stay below a certian amount so I won't have to go through this hassel.
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Come over here 8.75% sales tax
  6. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,417

    Come on Quad, they've been double dipping for years. Just think about paying sales tax on a used vehicle. Someone paid when it was new, why a second, third or fourth time. How about corporate taxes. The corporation is taxed, the payroll is taxed. Investment dividends are taxed even though you bought them with income that was taxed. Interest income is taxed even though that is from income that was taxed. Need I go on?

    So why shouldn't the bastards double dip on everything else that they can?

    Just think what happens if we get a Dem as president?

    And you're right, a 6% tax doesn't cost the customer 6%, because we have all the additional overhead involved in charging it, recovering it, giving it to the state.

    Remind me, why did anybody vote for this idiot that is our 'governor'?
  7. framer1901

    framer1901 Senior Member
    Messages: 805

    Mark, the man that always knows the answers - we've been screamin busy and I haven't had the time to check:

    I heard "landscaping" was taxable but lawn mowing wasn't. Does anyone have the offical take on this?/ Are we taxing landscaping services such as snowplowing, fertilization, bark etc but not taxing mowing????

    It's more of a PITA than anything, add a new line item to the bill but fill out five or more tax forms - probably cost us what 200 to 400 per year, oh yea it's money I want to keep and the more I type - what about the freakin DOT numbers and that added cost for the plates>>>>>>>>>>>

    Time to go home Jennnnnnyyyyyy
  8. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,417


    I don't know how accurate this is, it came from another green site. It appears to make sense though.

    Rumor has it that this whole deal may be unconstitutional as the Legislature bypassed the Headlee Amendment when they increased and levied new taxes without a vote of the citizens. Wait and see.

    PS Who invited Jenny to MI anyways?
  9. brunosplace

    brunosplace Senior Member
    Messages: 282

    Last edited: Oct 5, 2007
  10. brunosplace

    brunosplace Senior Member
    Messages: 282

    Looks like the above is correct, as it is linked from the Michigan Dept of Treasury site here:


    So it looks like it covers everything that we do.
  11. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,417

    Gotta love it. The repubs are running a radio ad here in GR about how this is all the Dems fault. Frickin politicians, if a few of the repubs hadn't voted for it, we wouldn't have it.
  12. Snowpower

    Snowpower Senior Member
    Messages: 636

    Try once a month.
  13. jcesar

    jcesar Senior Member
    from Mi
    Messages: 492

  14. bltp203

    bltp203 Senior Member
    Messages: 484

    Ok, so now I am confused.

    Plowing has NACIS #561790

    Landscaping has NACIS #561730

    So, the way I am reading it, is that plowing will not fall under the service tax. Am I off base here?
  15. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Seasonal property maintenance services (i.e., snow plowing in winter, landscaping

    Snow plowing services combined with landscaping services (i.e., seasonal property

    Snow plowing is a "Seasonal property maintenance service" so yea, its included.

    Its my take that if you have a MI sales tax number we should be getting something in the mail about this.

    If you don't have a MI sales tax number you have to apply for one if you plow snow, trim shrubs, run a Fortune-telling services,Dating services, Balloon-o-gram services and about a 100 other things.

    Along with our DOT # maybe we should have to post our MI sales tax number. Half kidding here, but it would make the non-insured, non-tax paying, lowballers easier to spot.
  16. jcesar

    jcesar Senior Member
    from Mi
    Messages: 492

    I agree, I agree, I agree!!!
  17. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,417

    Good point, I believe I will start adding that to the list of things I include when sending proposals.
  18. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Being from a heavy taxed state sometimes it gets hard following what other states do. It's like services are not taxed but labor is and this is and this isn't. It's simple here.

    snowplowing 1,000.00
    tax 8.75% = 87.50
    total due 1087.50

    plain and simple!payup
  19. Billz

    Billz Member
    Messages: 34

    so what will happen to the customers I already have signed on for this winter? Anything paid to me before Dec 1 is tax free, and anything they pay later is taxed?
  20. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,417

    Guess so. But who knows.

    I'm curious if shoveling and salting are taxable. Under the landscaping, it has all the individual services, but only specifically lists snow plowing???????