John McCain's six-point presidential primary win (50% to George W. Bush's 44%) stunned the political establishment in Michigan. Democrats and independents accounted for nearly 50% of the voters casting a ballot in the primary. With Democratic hopefuls Al Gore and Bill Bradley opting out of the state primary for the closed Democratic caucus on March 11th, McCain attracted over 80% of the Democratic vote and nearly 90% of the independents.
A record 1.3 million registered voters (20%) took part in the primary as a result of the popularity of McCain and the wild card participation of Democrats who sought to up-end Republican Governor John Engler's chosen candidate, George W. Bush. In the end, McCain garnered nearly all of the state's 58 delegates.
Governor Engler, an early and dedicated supporter of Bush, discounted any talk of closing future primary elections. He did suggest, however, that he might be interested in a system where any bona fide candidate is automatically listed on the ballot, or in a regional system in which, groups of states would conduct their primaries in specific months, with the designation rotating each election cycle to share the prominence of an early primary.
The House Tax Policy Committee this week began to move the package of tax cut legislation announced by Governor Engler in his State of the State message on January 19th. Five bills (HB 5389-5393) were approved by the committee and reported to the full House floor on Thursday.
Democratic members of the committee supported the personal exemption changes (HB 5390-93) but opposed or abstained from the acceleration of the personal income tax rate reduction contained in HB 5389. They argued the funds were better used for other priorities including increasing health care reimbursement rates and paying down the state's debt load.
The final bill in the package (HB 5394) is expected to be considered early next week. That proposal would increase the investment tax credit rate under the stateÕs Single Business Tax (SBT) during the planned phase-out of the tax. Certain business taxpayers would actually see an increased SBT liability during the early years of the phase-out because of the change to an investment tax credit from the existing capital acquisition deduction credit.
MRA members have responded quickly to the Association's request to communicate about Internet tax fairness with the federal Advisory Commission on Electronic Commerce. In a February 10th ACTION ALERT to all MRA members, the Association called on members to write letters to the commission members asking them to support uniform treatment of all retailers with respect to the collection of sales and use taxes.
The Advisory Commission is scheduled to issue its recommendations on Internet tax issues after its final meeting on March 21st to Congress. Currently, remote sellers--including Internet and catalog merchants--are being given a significant price advantage over traditional brick-and-mortar retailers by not being required to collect state sales and use taxes.
Many MRA members have written to express their views to the Advisory Commission, urging commissioners to support a recommendation that all retailers be required to collect sales and use taxes on taxable products, regardless of how the products are sold. "The response has been astounding," reported Larry Meyer, Vice Chairman and CEO of the Association. "No one anticipated the depth to which this issue affects our entire membership."
HB 5400, sponsored by Rep. John Hansen (D-Dexter), to revise procedure for removing name from list sold by the secretary of state.
HB 5422, sponsored by Rep. Laura Baird (D-Okemos), to require new and reupholstered furniture and carpet pads to be fire retardant.
HB 5431, sponsored by Rep. Patricia Lockwood (D-Fenton), to limit hours and days of operation for home telephone solicitation.
HB 5434, sponsored by Rep. Gerald Law (R-Plymouth), to exempt prescribed contact lenses from use tax.
HB 5440, sponsored by Rep. Raymond Basham (D-Taylor), to provide penalties for the sale of tobacco wrapping papers to minors.
HB 5443-5445, sponsored by Reps. Clark Bisbee (R-Jackson), Cameron Brown (R-Sturgis) and Stephen Ehardt (R-Lexington), to allow Michigan Economic Growth Authority board to determine single business tax credits for brownfield investment; to provide high-technology business credits; to create Obsolete Property Rehabilitation Act levying taxes and providing tax exemptions to encourage brownfield redevelopment; to provide property tax abatements for brownfield cleanups.
HB 5446-5459, various sponsors, a bill package to regulate telephone sales.
SB 1043, sponsored by Rep. John Schwarz (R-Battle Creek), to revise scheduling of methamphetamine; to increase penalties for operation of laboratories used to illegally manufacture controlled substances.
SB 1046-1048, sponsored by Sen. Ken Sikkema (R-Grandville), Sen. Loren Bennett (R-Canton) and Sen. Mike Rogers (R-Brighton), to allow Michigan Economic Growth Authority board to determine single business tax credits for brownfield investment; to provide high-technology business credits; to create Obsolete Property Rehabilitation Act levying taxes and providing tax exemptions to encourage brownfield redevelopment; to provide property tax abatements for brownfield cleanups.
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.