Michigan Retailers Association is partnering with the Michigan Restaurant and Michigan Grocers Associations to host a fundraiser for State Representative Nancy Cassis (R-Novi) on Monday, April 24. Nancy, who currently chairs the House Tax Policy Committee, is in her second of three possible terms as State Rep. of the 38th House District.
Throughout her first three-plus years in the state Legislature she has distinguished herself as a friend to both business and taxpayers in Michigan. She sponsored legislation that was passed into law last year that eliminates the Single Business Tax (SBT) over a 23-year period. In addition, she sponsored legislation that lowered the income tax rate in Michigan from 4.4 to 3.9 percent over a four-year period.
Currently Nancy has sponsored legislation allowing for a "sales tax holiday" in Michigan. HB 4982 would make purchases of clothing and footwear during the seven days prior to and after Labor Day tax-free. Similar legislation has recently been passed in New York, Texas and Florida. Both consumers and retailers alike have enjoyed the benefits of the tax holiday.
If you would like to meet Nancy and attend this event please contact MRAÕs Peter Kuhnmuench at 800.366.3699. The event will take place at MRA member Local Color Brewing Company in Novi from 6 to 8 PM. It offers a unique opportunity to discuss issues of great importance to the retail community with the chair of one of the most influential committees in the House.
In an April 14 letter to the Michigan congressional delegation, MRA CEO Larry Meyer blasted the Advisory Committee on Electronic Commerce for its decision to send its report to Congress. Congress charged the Commission with providing recommendations on Internet taxation if a two-thirds majority vote could be achieved. The Commission failed to reach the two-thirds consensus, but the Commission chairman, Virginia Governor James Gilmore, announced he would deliver the report to Congress nonetheless.
In corresponding with members of Congress, Meyer noted, "The Michigan Retailers Association rejects completely the findings of the less than two-thirds majority report from the Advisory Committee on Electronic Commerce. In our view the business members of this committee presented a report that was self-serving to say the least."
Legislation protecting retailers from the fraudulent sales tax exemption claims of customers has moved into position for passage in the House of Representatives. Under House Bill 4891, a retailer who secures a signed exemption claim certificate from a buyer would no longer be required to make additional efforts to verify the validity of a customerÕs exemption claim. The bill also extends the period covered by a blanket exemption certificate from three to four years.
Under current law, a retailer is required to exercise reasonable care and effort to determine if a purchaser is entitled to an exemption being claimed. If that claim is subsequently disallowed by the Michigan Department of Treasury in an audit review, the retailer is held liable for the applicable sales tax. Under the proposed legislation, a retailer who secures the signed certificate could not later be held accountable for the tax.
Legislation clarifying a retailerÕs responsibility to return sales tax on purchase refunds and returns passed the state Senate last week on a 37-0 vote. The proposal is scheduled for consideration before the House Tax Policy Committee on Tuesday of next week.
Under Senate Bill 584 (S-3) a seller who refunds or provides a credit for all or a portion of the amount of the purchase price of returned tangible personal property must also return to the customer the applicable sales tax originally added to the purchase price of those goods. The time period for return of the tax would be the time stated in the seller's refund policy or 180 days after the initial sale, whichever was sooner.
HB 5640, sponsored by Rep. Andy Neumann (D-Alpena), to provide income tax credit for expenditures by public school employees for supplies.
HB 5642, sponsored by Rep. Michael Switalski (D-Roseville), to require employer to furnish employee with a list of physicians from which to select before an independent medical examination.
HB 5645, sponsored by Rep. Raymond Basham (D-Taylor), to prohibit smoking in public restaurants.
HB 5661, sponsored by Rep. Robert Gosselin (R-Troy), to clarify definition of tax and fee.
HB 5662-5663, sponsored by Rep. Gerald VanWoerkom (R-Norton Shores), to regulate the use of computerized voice stress analyzers and to provide penalties; to remove regulation on voice stress analyzers from jurisdiction of state board of forensic examiners.
HB 5665, sponsored by Rep. Sandy Caul (R-Mt. Pleasant), to provide use tax exemption for clothing.
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.