MRA is asking members to get involved in the fight for sales tax equity with remote sellers. The current six-percent tax disadvantage main street retailers face against many remote sellers is an unfair practice that must be rectified by Congress. MRA has sent out an Action Alert calling on all members to write to the Advisory Commission on Electronic Commerce before their March 15th meeting.
At that meeting, the Commission will finalize its recommendations to Congress on how or whether to tax sales by remote seller merchants. Included in the Action Alert is a sample letter to the Commissioners and a letter from Governor Engler to MRA CEO Larry Meyer affirming EnglerŐs commitment to bring fairness to MichiganŐs application of sales and use tax.
MRA members are being asked to urge the Commission to recommend that all retailers be required to collect sales and use taxes on all products they sell, regardless of how and where they are sold. All avenues of retail sales, whether conducted by remote sellers or at traditional brick-and-mortar locations, should be treated equally for purposes of taxation.
This effort coincides with Governor EnglerŐs recent testimony before the Senate Budget Committee opposing the permanent remote seller tax exemption proposed by Senator John McCain of Arizona. The Governor asked that Congress uphold the statesŐ rights to enforce sales and use tax collection.
The legislation sponsored by Senator McCain would extend the current three-year moratorium and prohibit the collection of use or any other tax on remote seller transactions.
MRA will again be asking members of the Senate Appropriations Subcommittee on Community Health to protect the Medicaid dispensing fee. The current level of $3.72 was kept in place during last yearŐs budget process only after an MRA supported amendment was adopted by the full House. Last yearŐs subcommittee recommendation would have lowered the dispensing fee level nearly $1.00 to $2.75. MRA will be working with like-minded organizations to insure that the current level is maintained.
Legislation that would require more controls on telemarketing in Michigan was introduced in the Senate this week. The 14-bill package would prohibit telemarketers from blocking caller ID services, prohibit calls between 5 p.m. and 7 p.m., require licensing of telemarketing firms and require telemarketers to identify themselves within the first 25 seconds of a phone call. This legislation, sponsored by a bipartisan group of senators, has been referred to the Senate Committee on Technology and Energy.
Legislation that would prohibit the Department of State from selling motoristsŐ addresses for profit was put on hold in the House Transportation Committee due to concerns that the bills would hurt some small businesses. A vote on the legislation (HB 5227, HB 5230 and HB 5270) was postponed when the owner of a Royal Oak auto parts shop testified that this legislation would put him out of business. After hearing the testimony, legislators from both parties decided to study the issue further before taking a vote. Transportation Committee Chair Rep. Rick Johnson (R-LeRoy) said he expects to take the issue up again next week.
Legislation aimed at keeping alcohol purchased over the Internet out of the hands of minors was passed out of the House Regulatory Reform Committee this week. The bill, HB 4752 sponsored by Rep. Nancy Cassis (R-Novi) would require the seller to verify the age of the purchaser and ensure that the alcohol is delivered only to the person who made the purchase. In addition, the companies selling the alcohol would be required to pay Michigan licensing fees and be required to collect the six-percent sales tax. The legislation now will go before the full House for consideration
HB 5302, sponsored by Rep. Gilda Jacobs (D-Huntington Woods), to require optometrist or ophthalmologist to give patients who need contact lenses a prescription upon request.
HB 5310, sponsored by Rep. Clark Bisbee (R-Jackson), to revise required completion date of Headlee calculation of property tax growth to second Monday in May.
HB 5317, sponsored by Rep. Valde Garcia (R-St. Johns), to allow grace period following inspection to comply with MIOSHA standards.
HB 5323-5325, sponsored by Rep. Steve Vear (R-Hillsdale), to require written confirmation for switching natural gas suppliers, telecommunications providers, and electricity suppliers.
HB 5331, sponsored by Rep. Andrew Richner (R-Grosse Pt. Park), to require continuing education for hearing aid dealers, salespersons and trainees.
SB 981, sponsored by Sen. Bev Hammerstrom (R-Temperance), to provide single business tax credit for company-operated facilities or subsidization of childcare.
SB 988-989, sponsored by Sen. Joanne Emmons (R-Big Rapids), to include transmission of electricity as retail sale for sales and use tax.
SB 990-1003, various sponsors, a bill package to regulate telemarketing.
For back issues of Capitol F@cts on-line visit MRA's web site at http://www.retailers.com/capfax/capfax.html.
Specific comments or questions regarding this bulletin should
be directed to:
Jason Klonowski, MRA's Manager of Governmental Affairs at jklonowski@retailers.com.
Michigan Retailers Association 603 South Washington Avenue Lansing, MI 48933
517.372.5656
800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
http://www.retailers.com
http://www.mallofmichigan.com
Click
here to find more information about any of the bills referenced above.