Tax On Business Services (Including Advertising) Possible In Michigan

A proposal to extend the sales tax to most business services, including advertising, may soon be introduced in the Michigan Legislature.

The State of Michigan faces a serious budget problem, with a projected deficit of $1 billion for the current year and the new fiscal year which begins October 1st. Governor Jennifer Granholm and members of the legislature must also find new revenue to replace the Single Business Tax, which expires at the end of the year and brings in almost $2 billion annually. The Governor delivers her 'State of the State' address on February 6th and unveils her budget proposal on February 8th.

No specific bill has been introduced yet, but ANA is working closely with other industry groups to monitor the situation. Advertising taxes have been proposed several times in recent years in the Michigan Legislature

If your company has significant contacts with Governor Granholm or the leadership in the Michigan Legislature, it would be very helpful if you would contact them to express your opposition to any tax on advertising. We have prepared some talking points you may wish to use against any tax on advertising.

If you have any questions or more information about the ad tax proposal in Michigan or any other state, please contact Keith Scarborough, Senior Vice President in ANA's Washington, DC office at or (202) 296-1883.

If someone else in your company is responsible for state tax issues, please pass this along and provide us their contact information for future communications.