Michigan: LIEAF Surcharge is Exempt from Sales tax
- Sales Tax News
- Sep 25, 2013 | Gail Cole
Michigan offers a Low-Income Energy Assistance Fund (LIEAF), which provides low-income energy assistance funding for electric utility companies. Electric utility companies may opt out of LIEAF, but if they do, they may not shut off services on delinquent residential accounts between November 1 and April 15.
LIEAF is a "'nonbypassable surcharge' on retail billing meters and is payable monthly by every electric utility customer." It will not break the bank, as the maximum monthly surcharge is $1.
The LIEAF surcharge, which must be separately stated on invoices, is not subject to sales tax.
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