Michigan ranks among top in the nation for sales tax administration

The Council on State Taxation (COST) recently released a report that ranks the state of Michigan among the best in the nation for sales tax administration, according to the Michigan Department of Treasury.

In the report, COST gave Michigan an overall "A-" grade for its sales tax administration, ranking with Indiana, Ohio and Wisconsin as the top four best sales tax administrators nationwide. The group objectively evaluated state laws and rules, state sales taxes based on their effectiveness in taxing personal consumption and state departments' implementing uniform, fair and centralized administration of their sales taxes.

"Since I took office, one of my goals has been to make sure state government is efficient and fair for all Michiganders," Gov. Rick Snyder said. "This report reiterates that Michigan is open for business in an increasingly competitive global marketplace."

Michigan scored high on fair audit and refund processes, as well as earned better than average scores on the exemption of business inputs. The state also ranked favorably due to being a member of the Streamlined Sales and Use Tax Agreement and scored high on parts of COST's scorecard related the adoption of that agreement.

COST's scorecard was divided into six categories: extent of taxation of business inputs or pyramiding of sales taxes; fair sales tax administrative practices; uniformity of state and local sales tax based and centralized administration; simplification and transparency of the sales tax; reasonable tax payment and credits administration; and fair audit and refund procedures.

"I am pleased the Council on State Taxation has acknowledged the hard work by this department," State Treasurer Nick Khouri said. "The state Treasury Department has been working hard to ensure we are creating a culture of taxpayer service. Taxpayers should know in good faith that we are a national leader in administrating all taxes fairly and efficiently."

COST is a nonprofit trade association consisting of nearly 600 multi-state corporations engaged in interstate and international business. The organization's objective is to preserve and promote equitable and nondiscriminatory state and local taxation of multijurisdictional business entities.

Published: Thu, May 03, 2018