KEY LEGISLATION:

VICTORY FOR MAIN STREET FAIRNESS!

Intense lobbying led by the Michigan Retailers Association resulted in House
passage Wednesday afternoon of legislation enabling Michigan to participate
in the national Sales Tax Streamlining Project. The vote was 57-50.

The legislation, House Bill 5080, now goes to the Senate, which approved a
similar bill this past spring. Passage in the Senate could come as early as
October 2. The bill will then go to Governor Engler, who strongly supports
the fairness measure.

The measure was stalled this summer by end-of-session politics in the
Michigan House. But MRA worked to put together a stronger coalition of
business and education groups to ensure passage. A new bill (HB 5080) was
introduced and referred to a more favorable House committee—a strategy that
paid off in committee approval Tuesday (see attached news clipping), setting
up yesterday’s vote by the full House.

MRA encourages all members to thank the 57 House members who voted in
favor of HB 5080 (see list below). Special thanks also go to Rep. Jason Allen
(R-Traverse City), who chairs the House Commerce Committee and was
instrumental in moving the bill forward, and to Sen. Joanne Emmons (R-Big
Rapids), who has worked closely with MRA on this issue and led the fight in
the Senate.

We will keep you posted on further developments, including the Senate vote
expected next week.

ROLL CALL VOTE: Here is the roll call vote on HB 5080:

DEMOCRATS VOTING "YES" (26):
Bernero, Bovin, Clark, Clarke, Daniels, Garza, Hansen, Hardman, Jacobs, Jamnick,
Kilpatrick, Kolb, Lemmons, Lipsey, McConico, Minore, Murphy, O'Neil, Phillips,
Quarles, Rison, Schauer, Stallworth, Thomas, Waters, Zelenko

REPUBLICANS VOTING "YES" (31):
Allen, Birkholz, Bisbee, Caul, DeRossett, DeVuyst, DeWeese, Ehardt, Gilbert,
Godchaux, Hager, Hart, Howell, Jelinek, Rick Johnson, Julian, Koetje, Kuipers,
LaSata, Mead, Meyer, Mortimer, Newell, Pumford, Richardville, Richner, Scranton,
Shulman, Tabor, VanWoerkom, Vear

DEMOCRATS VOTING "NO" (23):
Adamini, Anderson, Basham, B. Brown, R. Brown, Callahan, Dennis, Frank,
Gieleghem, Hale, Lockwood, Mans, Neumann, Pestka, Plakas, Rivet, Schermesser,
Sheltrown, Switalski, Whitmer, Williams, Wojno, Woodward

REPUBLICANS VOTING "NO" (27):
Bishop, Bradstreet, C. Brown, Cassis, Drolet,Faunce, George, Gosselin,
Hummel, Jansen, Ruth Johnson, Kooiman, Kowall, Middaugh, Pappageorge,
Patterson, Raczkowski, Rocca, Sanborn, Shackleton, Stamas, Stewart, Toy,
Vander Roest, Vander Veen, Voorhees, Woronchak

WORKERS’ COMP FEE INCREASES
REMOVED FROM CIS BUDGET

An agreement was reached this week that resulted in removal of a proposed
$15 million fee increase to businesses. The fee increase would have funded
the administration costs of the workers’ compensation bureau.

Business groups rallied to defeat the fee in order to avoid a new tax on
businesses in Michigan. The fee was thought necessary by lawmakers to cover
a $15 million shortfall in the Consumer and Industry Services budget, the
department that administers the work comp program. A one-year solution was
reached by utilizing monies that would have lapsed or been carried forward
in the budget.

MICHIGAN’S SMALL BUSINESS CLIMATE
RANKS 12TH IN NATION

The Small Business Survival Committee’s sixth annual ranking of the states
according to their policy climate for small business and entrepreneurship
reveals that Michigan placed 12th, falling just out of the top ten in this
category. The study incorporates 17 government-related taxes and other costs
affecting small businesses. The top fives states ranked in the survey are
Nevada, South Dakota, Washington, Wyoming and Florida

KEY BILL INTRODUCTIONS:

SB 632,633, sponsored by Sen. Joe Young (D-Detroit), to provide a 3-year
moratorium on collection of sales tax and use tax on Internet sales.

SB 637, sponsored by Sen. Young, to provide for disposal and recycling of
scrap tires.

SB 645,646, sponsored by Sen. Valde Garica (R-St. Johns), to include
penalties prohibiting eligibility to obtain driver license until 21 years of
age and require school to notify secretary of state uponsuspension of
expulsion from school for making false bomb threats.

SB 648, sponsored by Sen. Leon Stille (R-Spring Lake), to earmark collection
of sales tax revenue resulting from implementation of streamlined sales and
use tax administration act to education funding.

SB 654, sponsored by Sen. Christopher Dingell (D-Trenton), to exclude
trade-in value of used auto parts used for partial payment of new parts from
sales tax.

HB 5083,5084,5085,5086,5087, sponsored by Rep. Gary Woronchak (R-Dearborn),
to create an advisory council on psychotropic drug use among children and
develop other policies and procedures.

HB 5092, sponsored by Rep. Rich Brown (D-Bessemer), to revise effective date
for 2001 tax limitation elections.

HB 5100, sponsored by Rep. Mike Kowall (R-White Lake), to prohibit tax on
the Internet.

SB 674, sponsored by Sen. Bill Bullard, Jr. (R-Highland Twp), to establish
self-evaluative insurance audit as privileged information inadmissible in
court.

SB 678, sponsored by Sen. Bullard, to define use tax price base for motor
vehicles held for resale after 1,000 miles.

For back issues of Capitol F@cts on-line visit MRA's web site at 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
www.retailers.com
www.mallofmichigan.com

Click here to find more information about any of the bills referenced above.