KEY LEGISLATION:

MRA TESTIFIES ON STREAMLINED SALES TAX BILL

MRA CEO Larry Meyer provided expert testimony to the House Tax Policy
Committee on Thursday regarding the state’s effort to streamline the sales
tax collection process and require remote sellers to collect and remit sales
and use tax. In his remarks, Meyer emphasized fairness to Main Street
retailers, who form the backbone of the state’s economy. Meyer said that it
is unconscionable to require an in-state business to compete at a 6-percent
price disadvantage with out-of-state businesses.

Also testifying on behalf of MRA was Bob Groters, president of Klingman’s
Furniture in Grand Rapids. Groters provided committee members with several
anecdotal situations in which customers have utilized his store merely to
gather specific information for ordering through 800 numbers. He described
one situation in which an employee spent more than 100 hours working with a
customer on a very large order, only to have that customer buy the items
from a business in North Carolina that did not collect the sales tax. MRA
greatly appreciates Mr. Groters’ taking time out of his busy day to testify
on this important issue.

SB 433 was not voted on in committee on Thursday. Committee Chair Nancy
Cassis (R-Novi) has publicly expressed reservations about moving ahead with
the bill and has not placed it high on her list of priorities. If Michigan
wants to be at the head of the table on this issue, we need to pass this
legislation as soon as possible in order to allow the state to enter into
the multi-state agreement authorizing the Streamlined Sales Tax Project.
Please take a minute to contact Rep. Cassis’ office and urge her to take the
bill up for a vote before the summer break. She can be contacted at
517.373.0827.

BUDGET PROCESS CONTINUES TO INCH ALONG

About half of the state’s budgets have completed the appropriations process,
with several of the most confrontational still to be resolved due to a
massive revenue shortfall totaling nearly $600 million. Among the unresolved
budgets is the Department of Community Health (DCH) budget, which includes
the Medicaid budget related to pharmacy.

The DCH budget conference committee was scheduled to meet Wednesday, but the
meeting was cancelled because Senate Subcommittee Chair Joel Gougeon’s wife
suffered an auto accident. MRA has learned from Gougeon’s office that she is
in good condition but will require a great deal of recuperation. Gougeon’s
office also confirmed that the conference committee was not prepared to meet
anyway, as the House has been slow in sending along its proposals on the
budget. In a conference committee, the majority of the deals are worked out
prior to actually meeting and voting on the bill. Legislators then vote on
the entire package.

The conference committee should meet early next week and finish by the end
of the week. The dispensing fee and copay issues are still in question, but
preliminary indications are that legislators are trying to find a formula
that would restore last year’s language retaining the fee.

EMMONS NAMED NATIONAL RETAIL FEDERATION’S
LEGISLATOR OF THE YEAR

The National Retail Federation recently named Sen. Joanne Emmons (R-Big
Rapids) Legislator of the Year. Emmons was nominated by MRA. She will
receive her award at NRF’s annual Legislative Conference in Colorado Springs
August 5.

Sen. Emmons has consistently supported retail, sponsoring legislative
proposals to reform item pricing laws in Michigan and require remote sellers
of goods to collect sales tax on customer purchases. MRA will be hosting an
August 6 breakfast meeting with retail executives and Sen. Emmons in
Colorado to discuss the possibilities for passing significant item pricing
reform in Michigan. Interested parties should contact Eric Rule at MRA for
more information.

HOUSE PASSES LABOR DAY HOLIDAY EXTENSION,
REDISTRICTING PLAN

Two bills with importance to retail passed the House this week. HB 4491, to
continue mandatory school closing the Friday before Labor Day, passed 57-49
after the voting board was cleared due to an initial lack of votes. This
bill is very important to retailers in tourist areas of the state. Requiring
that schools be closed on the Friday before Labor Day assures the state an
additional four-day weekend and prompts travel and spending in these areas.

Amid a great deal of contention Thursday, Republicans in the House passed
their proposal for redrawing boundaries for the state’s 110 House districts.
Blasted by Democrats who say it was clearly designed to prevent them from
competing for House control, the proposal could give the Republicans an
estimated 63 districts with Republican bases of 52 percent or more.
Democrats also decried the fact that they received the plan only one hour
before session. The plan now goes to the Senate, where it is unknown what
changes, if any, that chamber will seek.

KEY BILL INTRODUCTIONS:

HB 4979, sponsored by Rep. Triette Lipsey Reeves (D-Detroit), to limit
display of sexually explicit matter by businesses to restricted areas.

HR 165, sponsored by Rep. Artina Tinsley Hardman (D-Detroit), to urge
Liquor Control Commission to halt the transfer of licenses for carry-out
liquor establishments in Detroit.

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:
Kathleen Wilson, Administrative Assistant to the Governmental Affairs Office at
kawilson@retailers.com.
Michigan Retailers Association
603 South Washington Avenue
Lansing, MI 48933
Phone: 517.372.5656
Toll Free: 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.