LANSING – The Michigan House of Representatives passed a plan proposed by State Representative Jeff Mayes (D-Bay City) to make clear that pre-cast concrete companies qualify as "materialpersons." This designation will allow these companies to pay their sales taxes quarterly, rather than monthly.
"These pre-cast concrete companies will play a key role in Michigan's economic recovery," Mayes said. "Not only do these companies provide good-paying jobs for our workers, they help build the projects that will move Michigan forward. By supporting them, we're making an investment in the future of our state."
Currently, firms that sell lumber and other building-related products on credit – known as "materialpersons" – can file to remit their sales taxes on a quarterly basis, rather than every month like most Michigan businesses. This is because construction materials are often sold on a credit basis, meaning the seller often receives payment up to three or four months after a sale, creating cash flow issues for these businesses.
Under Mayes' plan, which passed the House with overwhelming bipartisan support, pre-cast concrete companies will be included under the definition of "materialpersons," allowing them to make quarterly income tax payments and easing the burden on their cash flow. The plan does not change the amount of taxes that these companies are required to pay each year, just when they pay them.
"I'm very pleased that this plan passed with support from both sides of the aisle," Mayes said. "I urge the Senate to finally take action on this common-sense plan to support our workers and Michigan businesses."