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!”

View comments or post a comment on this story. (0 Comments)

More News

Arizona Operator Knows Quality Affiliations Take Time

The Driver Provider’s Mary Beall dishes out some valuable advice for building strong affiliate relationships.

NLA Supports, Celebrates Charities At LCT East

Early bird and group discounts end today, so don’t miss your chance to attend this event at the show!

Attention To Detail Sets California Operator Apart

WebXclusive: Millennial operator Aaron Schiff of Ascot Limousine uses his talents to maintain the stellar reputation of his godfather’s company.

Uber's Creepy Drones And Drivers

TNC Travesties Of The Week: The company's marketing techniques prove to be just as aggressive as their independent contractors. 

70 Defining Moments In Luxury Industry History

From the 1970s to the present, check out these incredible events that affect the wider luxury services and products sector. 

See More News

Facebook Comments ()

Comments (0)

Post a Comment



See More

See More

See More

See More

LCT Store

LCT Magazine - October 2016 $12.95 COVER STORY: * Leverage Tech To Levitate Your Operations * *


Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment



Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close