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 Senate Finance committee with bipartisan support. Senate Bill 1175, sponsored by Sen. Joanne Emmons (R-Big Rapids), would clarify that a retailer who "received a completed and signed exemption certificate from the buyer" establishes a "good faith" effort to verify tax-exempt status when 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 from three years to four the amount of time buyer-seller transactions are covered by a blanket exemption.
SB 1175 mirrors House Bill 4891, sponsored by Rep. Clark Bisbee (R-Jackson).. HB 4891 currently awaits action in the House. Both sponsors have been working with the Treasury office to address record-keeping concerns held by the state. It appears that a compromise will be reached shortly. MRA will continue to support this legislation as it moves through the legislature.
Efforts to reach a consensus on a plan to deregulate the electric power industry in Michigan have ground to a halt. As previously reported, the Chairman of the Senate Energy and Technology Committee, Sen. Mat Dunaskiss (R-Lake Orion), has suspended hearings on the issue until further notice.
Several versions of Senate Bill 937 were unable to satisfy the competing interests of consumers, large and small businesses, the utility companies and the Michigan Public Service Commission (MPSC). The Chairman, in comments announcing that the committee would take at least a two week "cooling-off period," vented frustrations at several interest groups for their failure to support his legislative proposals.
Critics, however, were quick to point out an internal MPSC memo, which concluded that the proposal as before the committee would not create a competitive market for electric power. The memo highlighted concerns by the MPSC that "the transition charge is too large and will thus preclude effective competition." It also noted that "the transition charge will continue for 17 years for Detroit Edison, and 25 years for Consumers Energy, thus locking in Michigan to a no-competition or limited competition mode while most, or all other states, will pass us by competitively."
Discussions have now turned toward possible efforts to legislatively authorize the MPSC to move ahead with its own version of electric restructuring. With such authority, MPSC could establish the parameters under which competition could proceed and define important fundamental components of the plan.
HB 5551, sponsored by Rep. Stephen Ehardt (R-Lexington), to exclude realtor's commission from calculation of taxes paid for sale real estate transfers; holds state school aid fund harmless.
HB 5552, sponsored by Rep. Hansen Clarke (D-Detroit), to exempt school improvement materials from sales tax.
HB 5556, sponsored by Rep. Jennifer Faunce (R-Warren), to prohibit manufacture, delivery and possession of gamma-butyrolactone; to provide penalties.
HB 5557, sponsored by Rep. Mike Kowall (R-White Lake), to enact sentencing guidelines for manufacturing, delivering, possessing with intent to deliver or possessing gamma-butyrolactone.
HB 5558, sponsored by Rep. Judith Scranton (R-Brighton), to earmark a portion of use tax collections on sale or lease of motor vehicles for the School Aid Fund and the Comprehensive Transportation Fund.
HB 5561-5562, sponsored by Rep. Derrick Hale (D-Detroit), to provide income tax deductions as reparations to descendants of African-Americans and slaves.
HB 5571, sponsored by Rep. Clark Bisbee (R-Jackson), to deduct federal gas tax from gross proceeds for determining sales tax.
HB 5620, sponsored by Rep. Jud Gilbert (R-Algonac), to repeal requirement of a bicycle to be equipped with a bell or similar device.
SB 1206, sponsored by Sen. George Hart (D-Dearborn), to require bottled water distributors to disclose water source on label.
SB 1207, sponsored by Sen. Burton Leland (D-Detroit), to require bottle deposit on fruit juice bottles.
SB 1217, sponsored by Sen. Dave Jaye (R-Washington Twp.), to provide single business tax credit for Michigan made products.
SB 1218, sponsored by Sen. Shirley Johnson (R-Royal Oak), to provide gas customer shut-off plans.
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
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here to find more information about any of the bills referenced above.