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On January 13, 2026, the Michigan legislature announced a series of new taxation measures aimed at increasing state revenue and addressing budgetary concerns.One of the key proposals put forth by lawmakers is a plan to raise the state sales tax from 6% to 7%, with the additional revenue earmarked for funding critical infrastructure projects such as road repairs and bridge maintenance. This increase is expected to generate an estimated $500 million in additional revenue annually.In addition to the sales tax increase, legislators have also introduced a new tax on online purchases. Under this measure, online retailers operating in Michigan will be required to collect a sales tax on purchases made by state residents, leveling the playing field for brick-and-mortar businesses and generating an estimated $200 million in new revenue each year.Furthermore, lawmakers have proposed a new tax on sugary beverages as part of their efforts to promote public health and combat obesity. The tax, set at 2 cents per ounce, aims to reduce consumption of sugary drinks while simultaneously raising an estimated $100 million in revenue annually.Critics of the new taxation measures have raised concerns about the potential impact on consumers, arguing that the higher sales tax and new taxes on online purchases and sugary beverages could disproportionately affect low-income residents. However, supporters of the proposals contend that the additional revenue generated will help fund vital services and infrastructure improvements that benefit all Michigan residents.The new taxation measures will now be subject to further debate and discussion in the legislature before potentially being enacted into law. Lawmakers are optimistic that these measures will help address the state's budgetary challenges and pave the way for a more prosperous future for Michigan.