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SALES TAX ON CORES EXCLUDED EFFECTIVE MARCH 29, 2017 Governor Snyder Approves Michigan SB 991 to Excluded Sales Tax on Cores
Governor Synder approved Michigan Senate Bill 991 on 01/05/17. The bill was filed with the Secretary of State on 01/09/17 and assigned to PA 515 and 516 of 2016. The Governor passed the bill "without immediate effect", resulting in an effective date of March 29, 2017.
Michigan SB 991 amends the General Sales Act to exclude from taxation, and excludes from the defination of "sales price" a core charge attributable to a recycling fee, deposit, or disposal fee for a motor vehicle or recreational vehicle or battery.
The Act, in place since 1937 and until March 29, 2017 imposed a tax of 6% on the sale price of nonexempt personal property. The Act defines "sales price" as the total amount of consideration, including cash, credit, property, and services, for which tangible personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise. The Act lists certain cost, charges, and amounts that are included in the term, and others that are not.
There has been debate within the State of Michigan Department of Treasury of when the actual "effective date" for this exemption of sales tax on cores would become effective due to the way SB 991 was written. The bill was written with effective date of January 1, 2017, however the Governor signed the bill "without immediate effect" which means the bill takes effect 90 days after the end of the 2016 session.
The State of Michigan Department of Treasury "Notice to Taxpayers Regarding 2016 PA 515 and 516 (Core Charges)" issued January 25, 2017 with date clarification for when sales tax on cores becomes exempt. That effective date, per the State of Michigan Department of Treasury Notice is March 29, 2017.
The Governor also approved HB 5928 which is a companion bill to SB 991 relating to Use Tax on cores.
Thank you MAPA members, the automotive repair industry, other automotive associations, legislators and Governor Snyder for supporting and getting Senate Bill 991 approved.
Notice To Taxpayers Regarding 2016 PA 515 and 516 (Core Charges) SB 991 Regarding 2016 PA 515 (Core Charges) HB 5928 Regarding 2016 PA 516 (Use Tax-Core Charges)
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