Legislation exempting certain clothing purchases from the sales tax during the seven days before and after Labor Day is expected to be taken up in the House Tax Policy Committee on Tuesday. House Bill 4862, sponsored by Tax Policy Chair Nancy Cassis (R-Novi), would eliminate sales tax during this period on all clothing and footwear purchases less than five hundred dollars.
The legislation is similar to policies recently passed in Texas, Florida and New York that have created tax holidays for clothing and like items. The New York legislature recently eliminated the state sales tax permanently, although some local municipalities are still taxing sales.
MRA supports this legislation and will continue to update you on its progress.
Governor John Engler has proposed legislation to jump-start deregulation efforts for the telecommunications and electric industries. The bills would cut rates by five percent for both electric and telephone customers and would grant the Michigan Public Service Commission (MPSC) more authority to oversee both markets.
At the announcement of his plan, Engler also called for a halt to current committee meetings on telecommunications. Engler stated that he decided to get involved at this point because it was becoming obvious that the telecommunications issue could not be resolved through the normal legislative process. Legislators have been unable to agree on a legislative solution to either the telecommunications or electric industry problems.
Committee hearings on the issues could begin as early as this week. MRA will monitor this legislation and keep our membership updated on its progress.
MRA spoke on behalf of retailers in a meeting on proposed amendments to the laws governing scrap tire regulation in Michigan. State Representative David Mead (R-Frankfort), sponsor of the primary bill in the three-bill package, hosted the discussion to receive input on the proposal.
Peter Kuhnmuench, MRA vice president of governmental affairs, discussed the issue with Department of Environmental Quality officials and legislators. Also included in the meeting were interests from the environmental community, local government groups, scrap tire processors and end-users.
Under the legislation, tire retailers would be required to contract for the disposal of their scrap tires directly with an authorized recipient of those tires. Authorized recipients would include a registered collection site, a landfill, an end-user of the tire, a registered scrap tire processor or a scrap tire recycler.
Currently the law only requires that a retailer contract with a registered scrap tire hauler. The proposal attempts to tighten the manifest requirements by mandating that the recipient of a scrap tire load send a written confirmation of receipt of the load back to the retailer. The retailer would then be required to reconcile that receipt with the original contract for the removal of the tires.
The package also broadens the definition of scrap tires to include used tires and increases from $.50 to $1.50 the surcharge on title certifications that are directed to the Scrap Tire Regulatory Fund. Finally, the bills would authorize warrantless searches and the forfeiture of property used in violation of the act.
Kuhnmuench stressed that the legislation should not unduly burden tire retailers with additional record-keeping responsibilities and excessive liability.
HB 5708, sponsored by Rep. Paul DeWeese (R-Williamston), to expand establishment of metropolitan region councils.
HB 5722, sponsored by Rep. Rick Johnson (R-LeRoy), to assess property tax on leased or rented vending machines to the owner at the ownerÕs location.
HB 5734, sponsored by Rep. Gary Woronchak (R-Dearborn), to require disclosure of fees or access costs on phone cards.
HB 5735, sponsored by Rep. Andrew Raczkowski (R-Farmington Hills), to require registration of prepaid calling cards.
SB 1223, sponsored by Sen. David Jaye (R-Washington Twp.), to increase penalties for crimes committed against school children, seniors and vulnerable adults.
SB 1231, sponsored by Sen. Alma Wheeler Smith (D-Salem Twp.), to establish state goals to guide policies, programs and rules of state agencies that impact natural resources and community development; to prescribe powers and duties of state agencies and officials.
SB 1233, sponsored by Sen. A. Smith, to require manufacturers and publishers to provide college textbooks in a digital electronic format upon request.
SB 1237, sponsored by Sen. Bev Hammerstrom (R-Temperance), to provide sales tax exemption for purchases from a coin-operated bulk vending machine of 50 cents or less.
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.