May 5, 2019

Crain’s Detroit Business: If Whitmer’s Gas Tax Increase Is Dead, Sales Tax on Services, Anyone?

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Car rentals at Detroit Metro Airport are subject to the sales tax. But ordering a ride from an Uber driver at the airport is exempted from sales tax because it’s a service.

“Why should one of those people pay sales taxes and not the other?” asks Carl Davis, research director at the Institute on Taxation and Economic Policy, a nonpartisan think tank based in Washington, D.C. “There’s no rationale behind it. It’s something that should be corrected.” Read more