Senate Bill 1040 sponsored by Sen. Phil Hoffman (R-Horton) was ordered enrolled and is on the way to Governor EnglerŐs desk for an expected signature. The legislation will increase the investment tax credit rate under the stateŐs Single Business Tax (SBT) for businesses with less than $5 million in gross receipts during the planned phase-out of the tax. Certain business taxpayers would otherwise see an increased SBT liability during the early years of the phase-out because of a change to the investment tax credit from the existing capital acquisition deduction credit.
The House passed a package of bills aimed at spurring brownfield redevelopment. One bill in the package, House Bill 5443 sponsored by Rep. Clark Bisbee (R-Jackson), allows for an SBT tax credit to those companies that develop on brownfield sites. MRA will monitor this legislation closely to ensure that retailers are not exempted from this tax credit.
Both chambers have been working to report budgets out of their respective committees. The Senate Appropriations Committee sent the Community Health Budget to the full Senate for consideration. As reported earlier, MRA will continue to fight vigorously to ensure that this budget allows retail pharmacies to be fairly compensated for filling Medicaid prescriptions.
Rusty Hills, a longtime aide to Governor John Engler, has officially been installed as the new state chair of the Republican Party. Hills was elected by the partyŐs 110-member state central committee on a unanimous vote. His term as party chair will expire in February 2001.
HillsŐ first actions were to name new additions to his staff. Mark Hoffman, former top aid to Lottery Commissioner Don Gilmer, was named executive director. Terry Marquardt, former legislative liaison for the Department of Management and Budget, was named political director. And Mary Harden, who previously worked for MCN Energy Group as the political action committee manager, filled the finance chair position.
The position of state chair of the Republican Party became available after former party chair Betsy DeVos resigned abruptly in early February. DeVos was not out of the political scene long. She was named finance committee chair for the National Republican Senate Committee earlier this week.
Two pieces of legislation requiring retailers to refund sales and use tax to the customer on returned items passed the Senate on unanimous votes on Thursday. Senate Bills 584 and 585 sponsored by Sen. Mike Goschka (R-Brant) would amend the General Sales Tax Act and Use Tax Act, respectively. Currently a retailer is not allowed to retain the tax when a full refund occurs. SB 584 would mandate a refund for partial as well as full refunds for up to 180 days after the sale or the time stated in the refund policy, whichever is sooner. SB 585 would require the same guidelines on use tax transactions. This legislation now moves to the House for consideration.
Citibank, which has contracted with the state of Michigan to provide EBT service for Food Stamp recipients, will begin shipping out equipment to Jackson-area qualifying retailers on March 31. During the month of April, equipment setup will take place. All equipment is scheduled to be installed by May 1, with training for EBT recipients to take place from May 8-26.
The first EBT recipients will be those persons who qualify for benefits in Jackson County. The benefits will roll out from June 1 through June 9. All retailers in Jackson county and the counties that geographically touch Jackson County will have EBT acceptance capability. Please call MRA with any questions regarding EBT implementation.
HB 5512, sponsored by Rep. Jason Allen (R-Traverse City), to increase allowable aggregate of retail sales made by a nonprofit organization for sales tax exemption.
HB 5516, sponsored by Rep. Charles LaSata (R-St. Joseph), to increase property tax registration fee and earmark a portion to School Aid Fund and local units of government.
HB 5517, sponsored by Rep. LaSata, to earmark sales tax on manufactured and mobile homes to School Aid Fund.
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.