December 6, 2022

Volume XII, Number 340

Advertisement

December 06, 2022

Subscribe to Latest Legal News and Analysis

December 05, 2022

Subscribe to Latest Legal News and Analysis
Advertisement

Michigan Tax Update: Ballot Initiative Good for Tribes

The Michigan legislature has approved a ballot initiative that will be submitted for voter approval in May 2015.

If approved, the initiative will impact Tribes in two important ways:

  • First, the initiative will eliminate the sales tax on retail sales of motor fuel. Under the Tax Agreement, Resident Tribal Members are not required to pay the sales tax on motor fuel purchases. However, the sales tax is owed on motor fuel sales to Non-Resident Tribal Members. If approved, the ballot initiative will eliminate this tax liability for Non-Resident Tribal Members.

  • Second, the initiative will increase the sales tax rate from 6% to 7% on taxable purchases. This tax increase will result in additional sales tax revenue for Tribes under the tax sharing provisions of the Tax Agreement.

Finally, it should be noted that any increase in the taxes included within the Tax Agreement, including the sales tax, ultimately increases the value of the benefits afforded under the Tax Agreement. 

© 2022 Varnum LLPNational Law Review, Volume V, Number 97
Advertisement
Advertisement
Advertisement

About this Author

Thomas J. Kenny, Varnum, Tax Litigation Attorney, Franchise Income Lawyer
Partner

Tom is a partner on the firm's Tax Practice Team. His practice includes civil and criminal tax litigation. Previously employed by the Department of Attorney General, Tom acted as legal counsel to the Department of Treasury in litigation matters before the Michigan Tax Tribunal, Court of Claims, Court of Appeals and Supreme Court. Prior to his employment with the Michigan Attorney General, he was an assistant prosecuting attorney in Detroit and handled criminal litigation and appeals.

Tom's tax practice focuses on the representation of Fortune 1000 companies in...

248-567-7409
Advertisement
Advertisement
Advertisement