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Services Provided by Medicaid Managed Care Organizations Not Subject to Use Tax in Michigan After December 31, 2016


Healthcare

Michigan has enacted legislation stating that medical services provided by Medicaid managed care organizations are no longer subject to use tax after December 31, 2016. From April 1, 2014 through December 31, 2016, these medical services were taxed in the same manner as sales of tangible personal property.  Beginning on July 1, 2020 or on the effective date of the repeal of section 3 of the health insurance claims assessment act, or the effective date of the amendatory act that amended section 3 of the health insurance claims assessment act and reduced the assessment to 0.0%, whichever is sooner, use tax will be reinstated on these services notwithstanding any other provision or exemption under this act.(Act 390 (S.B. 1172), Laws 2016, effective December 28, 2016, applicable January 1, 2017)

(01/19/2017)
(New)
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