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Are you having to charge a tax for services?

General Business Discussions

A place to talk about general business discussions.
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Old 10-08-2007, 10:43 AM
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This is from Lansing Michigan "Business leaders have reacted angrily and strongly to the Legislature's passage of the services tax as part of the state budget deal reached a week ago.

The new law imposes a 6 percent tax on 57 categories of services and will affect about 16,000 businesses."

How big of a deal do you think this is going to be? Will it negatively effect businesses or will customers simply pay it and move on?

New tax sends biz scrambling - Tim Doppel, president of Atwood LawnCare Inc., based in Sterling Heights, said his lawn- and tree-fertilization business will lose customers, at least in the short term. About 90 percent of his nearly 8,000 accounts in Oakland and Macomb counties are residential, and customers are “very, very price-conscious,” Doppel said.

“As hard as we will try to explain to them that the price of their service might not have changed ... it is because of what the Legislature did ... our customers don't care,” he said. “They're going to pay 6 percent more.
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