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Michigan LCO's and Luxury Tax

Discussion in 'Landscape Architecture and Design' started by MowerJockey, Mar 19, 2008.

  1. MowerJockey

    MowerJockey LawnSite Member
    Messages: 6

    Michigan LCO's:

    The last I knew, the State of Michigan passed a bill requiring luxury services to start paying taxes. LCO's were one of those luxury services that got the hammer on this. I know a lot of you fellas went to war against the state in Lansing. What ever came of it? Did Michigan drop the requirement for LCO's or are they still in it? I have been out of the biz for two years and was contemplating getting back in but didnt pay much attention until a friend told me we gotta pay now.

    Last few questions. I know a lot of people were fighting this but is the tax really going to be a bad thing? Doesnt the tax eliminate those "illegal immigrants" from lowballing? Or, is this a case of only honest LCO's will pay since they are the only ones claiming an income? I guess, how are they enforcing the tax on the startups who typically dont make enough to even claim on their federal taxes?

    Any input on this would be helpful.
  2. Grassmechanic

    Grassmechanic LawnSite Silver Member
    Messages: 2,697

    It was replaced by a business surcharge tax. There is no sales tax on "luxury" businesses.

    And increasing ANY taxes is never a good thing.

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