MRA CEO Larry Meyer and V.P. of Governmental Affairs Peter Kuhnmuench met this week with Michigan State Treasurer Mark Murray to discuss strategies for bringing fairness to MichiganŐs main street retailers when competing with remote sellers. Murray, along with Michigan Governor John Engler, has taken a leadership role in advancing this important issue with federal legislators, members of the Advisory Commission on Electronic Commerce and other state tax officials.
MRA renewed its commitment to encourage members of the Association to write the Commission and urge that they level the playing field between brick-and-mortar retailers and remote sellers. In addition, the Association is working with the state treasurer to secure adequate funding to implement the zero burden tax collection effort being promoted by the National GovernorŐs Association.
TAX PACKAGE MOVES OUT OF BOTH HOUSES A new round of tax cuts announced in the GovernorŐs January 19th State of the State Address has moved on dual tracks from both houses of the Legislature. Agreements must now be struck on which versions of the bills will ultimately be approved and sent to the Governor for signature. Leaders in both houses hope to finalize the package by the end of next week.
Included in the plan is an acceleration of the reduction of the state personal income tax to 4.2% and an increase in the personal exemption for all children under 19 years of age to $600. The package will also raise the exemption for senior citizens and the disabled from $900 to $1,800 and increase the property tax credit for the disabled to 100% of their taxes that exceed 3.5% of their income.
For businesses, the plan also includes an adjustment to the investment tax credit offered under the stateŐs Single Business Tax (SBT). The adjustment corrects potential tax increases brought on as a result of the transition from a capital acquisition deduction to an investment tax credit under the SBT. This change was incorporated into the legislation which phases out the SBT over the next 22 years.
Legislation Governor Engler signed in 1994 will finally take effect this year, when Michigan converts from a "Wage Request" to a "Wage Record" state on October 1, 2000.
Under the new system, forms containing weekly base period wages (Form 1555) will become obsolete. Instead the Unemployment Agency will use a quarterly wage data system. This will alleviate unnecessary paperwork for employers and simplify the benefits system.
The legislation originally required Michigan to convert to a "Wage Record" state by January 1, 1997. However, the implementation date was postponed to December 31, 2001, after Unemployment Agency administrators found they were unable to comply with the original timetable. The state will beat the revised deadline by more than a year.
Educational seminars will be held in the summer to familiarize employers with the new system. MRA will keep members updated as seminar dates are announced.
MRA CEO Larry Meyer and V.P. of Governmental Affairs Peter Kuhnmuench met this week with Department of Consumer & Industry Services Director Kathy Wilber. The meeting included a review of the Michigan Liquor Control CommissionŐs (MLCC) recent statewide roll-out of its Electronic Fund Transfer (EFT) payment system for liquor purchases.
The program was expanded after a successful pilot program, which was initiated last December. The new system allows retail liquor licensees to avoid having to pay for their state-controlled liquor purchases with a check each time a delivery is received. Liquor licensees should have received detailed information in their monthly pricing books issued by the MLCC.
Under the voluntary program, retailers will simply sign their invoice at delivery to indicate approval of the EFT payment. The funds will then be withdrawn electronically from the retailerŐs account on the third day following delivery. Members interested in the program can call the Michigan Liquor Control Commission in Lansing at (517) 322-1345.
HB 5470, sponsored by Rep. Ruth Ann Jamnick (D-Ypsilanti), to require certification of social security number of consumer when used in opening new accounts other than credit card accounts.
HB 5473, sponsored by Rep. Ken Bradstreet (R-Gaylord), to increase personal income tax exemption.
SB 1049, sponsored by Sen. Shirley Johnson (R-Royal Oak), to eliminate sales tax on construction and improvements of schools.
SB 1050, sponsored by Sen. Leon Stille (R-Spring Lake), to eliminate use tax on construction and improvements of schools.
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
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here to find more information about any of the bills referenced above.