Legislation exempting certain clothing purchases from the sales tax during the seven days before and after Labor Day was reported out of the House Tax Policy Committee by a unanimous vote on Tuesday. If passed by the legislature and signed by the governor into law, 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 $150. The threshold was lowered from the original $500 level after much discussion by committee members that the original amount was excessive.
Jason Klonowski, MRA manager of government affairs, testified in support of HB 4862. "Other states have found that a sales tax holiday benefits both consumers and retail businesses. The tax holiday will especially benefit lower-income families shopping for back-to-school clothes."
The legislation now moves to the full House. House Speaker Chuck Perricone (R-Kalamazoo), has said he supports the legislation and would like to hold a vote before the June 8th targeted recess date. MRA will keep you updated on the progress of this legislation as it moves through the legislature.
MRA-supported legislation to prohibit the sale of certain goods at flea markets will be considered by the House Economic Development Committee on Tuesday. HB 5677, sponsored by Committee Chair Valde Garcia (R-St. Johns), would prohibit the sale of temperature-sensitive and dated products at unregulated flea markets and require documentation of purchase for new and unused products sold in these settings.
John Smith, Loss Prevention Specialist with Wal-Mart Stores, Inc. is scheduled to provide expert testimony before the committee.
Shoplifting rings have become more aggressive recently and often use flea markets as an outlet for stolen goods. This legislation would allow local law enforcement officers to shut down vendors selling merchandise without proper documentation.
On Thursday, a proposal to open the electric industry to competition was reported by the Senate Committee on Technology and Energy. SB 937 now moves to the full Senate. The bill, which was originally designed to advance Governor John EnglerŐs restructuring plan, was significantly amended and then quickly reported on a unanimous vote.
Changes to the bill have raised serious concerns from the business community, as market power restrictions were dramatically loosened and rate cap protections eliminated. The bill does tie a 2000-megawatt increase in the incumbent utilitiesŐ transmission capacity to removal of the rate cap on residential rates. The bill also requires the utilities to join an independent systems operator as part of the effort to expand transmission capacity into the state.
The committee is expected to take up several related bills on Tuesday that address the issues of environmental protection, worker displacement assistance, low-income customer protections and a separate bill authorizing securitization of utility stranded costs. Senate Democrats have also hinted that their support may hinge on a proposal to convert the Michigan Public Service Commission to an elected body, rather the current gubernatorial appointment process.
HB 5752, sponsored by Rep. Patricia Birkholz (R-Saugatuck), to provide use tax exemption for cars donated by nonprofit organizations to individuals.
HB 5753, sponsored by Rep. Doug Hart (R-Rockford), to provide sales tax exemption for construction and improvement of schools.
HB 5781, sponsored by Rep. Sue Tabor (R-Delta Twp.), to require trigger lock or other secure container for sale of firearms.
HB 5782, sponsored by Rep. Larry DeVuyst (R-Alma), to enact sentencing guidelines for failing to provide trigger lock or other secure container with sale of firearm.
SB 1248, sponsored by Sen. Dianne Byrum (D-Lansing), to prohibit sales of bidis cigarettes and other cigarettes with high nicotine content.
SB 1253, sponsored by Sen. Mat Dunaskiss (R-Lake Orion), to amend transmission of electricity act to provide for securitization bonds.
SB 1256, sponsored by Sen. Mike Rogers (R-Brighton), to provide electric shut-off protection for seniors and low-income customers during heating season.
SB 1260, sponsored by Sen. Burton Leland (D-Detroit), to require electric utilities to provide customers environmental disclosures.
SB 1263, sponsored by Sen. Christopher Dingell (D-Trenton), to establish electric utilities worker transition program and provider licensing.
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.