Limousine Companies Exempt from Stadia Tax

Posted on February 16, 2005 by LCT Staff - Also by this author - About the author

MICHIGAN – Mike Cox, Attorney General of Michigan, stated that companies that provide limousine, taxi, or bus services are not subject to the tax imposed under the Michigan Stadia and Convention Act. Michigan limousine operators can celebrate a victory.

Last spring, Wayne County tax assessors began sending out notices demanding payment of this tax, including back payments for the past seven years, some amounting to as much as $30,000, according to Richard Greiner, president of the Greater Lakes Limousine Association. The association sprang into action, contacting Senator Alan L. Cropsey, who in turn asked Attorney General Mike Cox to review the act and issue an opinion on whether it applied to limousines and taxis.

The tax in question is “an excise tax which is imposed upon the privilege of engaging in the business of leasing or renting motor vehicles to others,” according to Cox’s Opinion #7169. There is a distinction between vehicles leased or rented to others and instances where someone will use the services of a limo, taxi, or bus operated by a chauffeur.

Cox concluded, “It is my opinion, therefore, that companies that provide limousine, taxi, or bus services are not ‘engaged in the business of leasing or rental of motor vehicles of which delivery is made’ and, accordingly, are not subject to the tax imposed under the Michigan Stadia and Convention Act.”

“As you can see, this was a fight that really needed to be fought,” said Greiner. “It is now a fight that we won!”

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