Michigan HB5880 establishes an excise tax on certain services provided in the state, effective January 1, 2027.

Michigan HB5880, known as the "services excise tax act," introduces a new excise tax on certain services provided within the state, effective January 1, 2027. The tax rate is set at 6% of the price of the covered services. The Department of Treasury is responsible for administering this tax, including the collection, enforcement, and distribution of the tax revenue. Service providers must register with the department and maintain accurate records of their transactions. Failure to comply with the act can result in penalties for service providers and purchasers.

Michigan HB5880 establishes an excise tax on certain services provided in the state, effective January 1, 2027.

Michigan HB5880, known as the "services excise tax act," introduces a new excise tax on certain services provided within the state, effective January 1, 2027. The tax rate is set at 6% of the price of the covered services. The Department of Treasury is responsible for administering this tax, including the collection, enforcement, and distribution of the tax revenue. Service providers must register with the department and maintain accurate records of their transactions. Failure to comply with the act can result in penalties for service providers and purchasers.