Friday, February 11, 2000

KEY LEGISLATION:

SALES TAX EXEMPTION CERTIFICATE LEGISLATION GETS COMMITTEE APPROVAL

MRA-supported legislation that would amend the General Sales Tax Act by clarifying the requirements for documenting tax-exempt sales transactions was reported out of the Tax Policy Committee with bipartisan support. House Bill 4891, sponsored by Rep. Clark Bisbee (R-Jackson), would clarify that a retailer who "received a completed and signed exemption certificate from the buyer" establishes a "good faith" effort in accepting the exemption claim. Currently the law does not define what constitutes a good faith effort to verify the tax-exempt status.

This legislation affords retailers greater protection should any dispute arise regarding the tax-exempt status of a sale. The bill would also lengthen the amount of time buyer-seller transactions are covered by a blanket exemption from three years to four. This legislation now goes before the full house for consideration. MRA will continue to support this legislation as it moves through the legislature.

 

HOUSE, GRANHOLM GO AFTER ILLEGAL WEB SALES OF LIQUOR

Legislation aimed at keeping alcohol purchased over the Internet out of the hands of minors was unanimously passed by the State House of Representatives. 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 collect the six-percent sales tax.

The legislation passed the same day Attorney General Jennifer Granholm announced that she had filed charges against numerous out-of-state companies for selling alcohol to minors. A spokesperson for Granholm stated that current law affords the attorney general the power to prosecute illegal sellers of alcohol on the Internet.

Cassis stated that her bill "strengthens the attorney generalŐs hand" by specifically placing electronic sales regulations into statute. The legislation now moves to the Senate for consideration.

 

HOUSE OKS BAN ON MAILING LIST SALES

The House on Thursday passed legislation that would prohibit the Department of State from selling motoristsŐ addresses for profit. The three-bill package (HB 5227, HB 5230 and HB 5270) was passed with nearly unanimous support; just one member voted against the legislation. The lists are produced from the Department of StateŐs databases of motor vehicle registration and driverŐs license information.

The legislation would also require legislators to pay for the lists should they use them for legislative purposes. Currently lawmakers can obtain the lists for free. This legislation now moves to the Senate for consideration.

 

IMPLEMENTATION OF MICHIGANŐS ELECTRONIC BENEFITS TRANSFER (EBT) SYSTEM ON TRACK

Citicorp Services has been contracted by the state of Michigan to provide EBT services for Food Stamp recipients. A pilot program in Jackson County will run for a three-month period starting May 1, 2000. Statewide implementation is set to begin rollout in September and be completed by the summer of 2001.

For information regarding the EBT program and seminars on this issue, please contact MRAŐs Governmental Affairs Department.


 

KEY BILL INTRODUCTIONS:

HB 5354, sponsored by Rep. Mark Jansen (R-Gaines Twp.), to create Consumer Telephone Solicitation Act regulating telephone sales.

HB 5380, sponsored by Rep. David Mead (R-Frankfort), to provide general amendments to scrap tire regulations. HB 5381, sponsored by Rep. Jason Allen (R-Traverse City), to make violation of scrap tire regulations subject to forfeiture.

HB 5382, sponsored by Rep. Sue Tabor (R-Delta Twp.), to eliminate sunset on the title transfer fee for the scrap tire regulatory fund; to increase fee. HB 5389 & SB 1035, sponsored by Rep. Jim Howell (R-St. Charles) & Sen. Mike Rogers (R-Brighton), to accelerate income tax reduction.

HB 5390 & SB 1036, sponsored by Rep. Scott Shackelton (R-Sault Ste. Marie) & Sen. Bev Hammerstrom (R-Big Rapids), to increase age limit for $600 supplementary income tax exemption for children from 7 to 18.

HB 5391 & SB 1037, sponsored by Rep. Gary Woronchak (R-Dearborn) & Sen. Bill Bullard (R-Highland), to revise income tax exemption for seniors and disabled.

HB 5392 & SB 1038, sponsored by Rep. Clark Bisbee (R-Jackson) & Sen. Mike Goschka (R-Brant), to define "dependent" in Income Tax act.

HB 5393 & SB 1039, sponsored by Rep. Jud Gilbert (R-Algonac) & Sen. Shirley Johnson (R-Royal Oak), to expand individuals eligible for senior homestead property tax credit to include disabled and deaf people.

HB 5394 & SB 1040, sponsored by Rep. Valde Garcia (R-St. Johns) & Sen. Philip Hoffman (R-Horton), to revise calculation of single business tax investment credit provision.

HB 5395 & 5399, sponsored by Reps. Lynne Martinez (D-Lansing) and Laura Baird (D-Okemos), to require label identifying genetically altered foods


 

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.



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