KEY LEGISLATION:
Governor’s Tax Proposals Draw Ire of Business Groups
Governor Granholm’s proposals to increase revenue
through the closing of
so-called "tax loopholes" have met stiff opposition from various
business
groups, including MRA. Rather than meeting the true definition of a
loophole, the majority of the proposals actually increase taxes or are
new taxes.
Business groups made it clear that these proposals cannot
be adopted and
that state spending should be cut rather than taxes increased on businesses
in Michigan. The House Tax Policy Committee received this message favorably
this week when it failed even to take votes on most of the governor’s
tax
proposals. Chairman Wenke (R-Richland) commented that it was obvious
these
proposals are not loopholes but in fact tax increases, and that no further
action would be taken on them in his committee.
Prior to this action, the committee did pass out a package
of bills the
governor put forth seeking to tax casino winning on out-of-state residents,
and to streamline how the Treasury attempts to collect income taxes
owed by
"flow-through entities."Spam
Spam Bill Clears Committee
A bill to regulate unsolicited commercial e-mail was
reported from the House
Energy and Technology Committee this week on a unanimous vote. HB 4519
(Huizenga-Zeeland) is gaining momentum and should be through the House
by
next week. If the bill were passed, it would require various disclosures
to
be included in any unsolicited commercial e-mail ("spam").
Such e-mails
would need a valid, accurate e-mail return address, and might be required
to
contain the term "ADV:" in the subject line, to signify an
advertisement was
being sent. A bill also exists in the Senate that would go a step further
and set up a statewide "Do-Not-E-mail" list, similar to the
telemarketing
"Do-Not-Call" list passed last session.
At issue is the enormous volume of "spam"
e-mail that fills the inboxes of
most people’s e-mail programs these days. Testimony on the issue
focused on
the great amount of time and money necessary to filter and/or delete
these messages.
MRA is weighing in on the issue as supportive of the
concept, but is
concerned about how it may impact legitimate e-mail and advertising
from
retailers. One important provision of the legislation is that it contains
a
prior business relationship exemption. This should allow a business
to send
an e-mail to those individuals who have given their e-mail address to
the
business, either in person or online.
MRA will continue to track this legislation as it moves
in order to make
sure changes are not made that would impair businesses from sending
legitimate and desired e-mail to their customers.
Liquor Levy May Be Increased
Representative Gretchen Whitmer (D-East Lansing) will
soon introduce
legislation granting the Michigan Liquor Control Commission the power
to
increase the rate it charges for distributing liquor. Reportedly, the
additional revenue raised through the increased charge would be earmarked
for fire protection services that house state buildings.
With the budget situation as bad as it is, so-called
sin taxes are generally
believed to create less waves than other taxes. Governor Granholm and
Speaker Johnson are also reportedly open to such a proposal. While Whitmer
sees no problem with increasing the fees to distributors of liquor,
she
apparently may be open to minimizing the impact of the increase on retailers
of the products covered. MRA will facilitate conversations with the
representative on this issue.
Worker’s
Compensation Appellate Commission
Funding Restored
The Senate passed the Consumer and Industry Services
budget this week, and
in the process, reinstated the $1.2 million funding for the Worker’s
Compensation Appellate Commission. Governor Granholm had proposed the
commission be eliminated.
When Senate Democrats offered an amendment reinstating
the cut, Republicans
argued that the commission was vital for the business community in the
state
and would save money for the business community, although perhaps not
for
the state. The Democrats’ amendment failed on a 16-21 party-line
vote. The
bill now goes to the House where it is once again fair game.
KEY BILL INTRODUCTIONS:
SB 387, sponsored by Sen.
Burton Leland (D-Detroit), to increase motor fuel
tax rate.
SB 401, sponsored by Sen. Robert Emerson (D-Flint),
to require all business
entities to request a certificate of dissolution of certificate of
withdrawal from state.
SB 402, 403, 404, 405, 406, 407, sponsored by
Sen. Emerson, to place certain
requirements and restrictions on flow-through entities.
SB 408, sponsored by Sen. Emerson, to include
winnings from a casino or
racetrack as taxable income.
SB 409, sponsored by Sen. Emerson, to define flow-through entity.
SB 415, sponsored by Sen. Emerson, to require
out-of-state affiliate to be
subject to taxation.
SB 416, sponsored by Sen. Emerson, to restrict
undervalued real estate
transfers.
SB 417, sponsored by Sen. Emerson, to revise
severance tax on oil or gas in
lieu of other taxes.
SB 419, sponsored by Sen. Emerson, to prohibit
claiming credit carryforward
or loss carryforward in amount greater than amount claimed if taxpayer
filed
separately.
SB 420, sponsored by Sen. Emerson, to revise liability at dissolution.
SB 421, sponsored by Sen. Emerson, to establish
tax liabilities on members,
managers and partners of businesses selling or quitting business.
SB 422, sponsored by Sen. Emerson, to limit income subtraction.
SB 423, sponsored by Sen. Emerson, to include
out of state businesses in
small business disqualifier.
SB 424, sponsored by Sen. Emerson, to revise definition of business income.
SB 429, sponsored by Sen. Bruce Patterson (R-Canton),
to expand principal
shopping districts to include township.
SB 470, sponsored by Sen. Martha Scott (D-Highland
Park),to expand
prescription coverage to include certain contraceptives.
HB 4432, sponsored by Rep. Larry Julian (R-Lennon),
to exempt fire and other
peril losses due to terrorist events in commercial insurance policies.
HB 4553, sponsored by Rep. Stephen Ehardt, (R-Lexington),
to provide for
small employer group health coverage and provision regarding health
maintenance organization coverage for "off-label" drug use.
HB 4640, sponsored by Rep. Paul Gieleghem (D-Clinton
Twp.), to establish
solid waste fees.
To view the content and current status of retail-related
bills, visit BillTrack,
MRA's legislative tracking database exclusively for members, at
www.retailbilltrack.com
If you are currently receiving Capitol F@cts by fax
and would like to receive
it via e-mail, please contact Kathleen Wilson at 517.372.5656 or
kawilson@retailers.com.
For back issues of online Capitol F@cts, visit MRA's main Capitol F@cts page.
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
517.372.5656
Toll-Free: 800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
www.retailers.com
www.mallofmichigan.com
