KEY LEGISLATION:
Gas Pricing Bills Pitched
Legislation aimed at stopping large retailers from pricing gasoline
below
cost was announced at a press conference. The packet of bills, which
is
touted as the "Petroleum Marketing Stabilization Act," seeks
to set a
minimum markup on the sale of gasoline.
Sen. Mark Schauer (D-Battle Creek) and Rep. Charlie LaSata (R-St. Joseph)
are sponsoring the bills in the Senate and House respectively. The bills
are
being introduced at the request of the Michigan Petroleum Association,
the
Michigan Association of Convenience Stores and the Service Station Dealers
Association. Similar efforts in several other states have been unsuccessful.
MRA is concerned about government interference in gasoline pricing.
Free
market forces should ultimately dictate the price a product is sold
for. By
mandating that a minimum markup be charged above the price the retailer
paid
for the gasoline, this legislation is likely to result in increased
prices
to the consumer, and it would tie the hands of retailers that operate
more
efficiently and benefit from volume purchasing.
When the issue has been attempted in other states, the Federal Trade
Commission has repeatedly said this type of regulation actually hurts
the
consumers advocates say it will protect. Moreover, predatory pricing
is
already illegal in Michigan. The bills are expected to be introduced
next
week. Governor Jennifer Granholm is reportedly interested in the package
but
held off on taking a firm stance until it reaches her desk.
Racinos, Homestead Exemption Could Help State Budget
Efforts to balance the state budget are taking all forms these days,
and all
creative ideas are being considered. Two proposals being considered
include
the controversial concept of "racinos" and a plan to enforce
a law already
on the books regarding the homestead exemption.
A "racino" bill package passed the House this week, despite
protest from
Detroit's casino interests and others opposed to the expansion of gaming
in
Michigan. The bill package is an effort to help save the state’
s seven
faltering horseracing tracks by allowing them to feature casino-style
gaming. Along with video lottery terminals, the package would provide
15 new
Off-Track Betting (OTB) sites and Internet and telephone wagering on
horse
races. This proposal is projected to raise upwards of $300 million to
help
alleviate the state’ s budget deficit, which is presumably why
it passed the House.
Another idea recently announced to bring in additional revenue is less
controversial. Senate Republicans are calling for a plan to go after
taxpayers who double-dip on the state homestead exemption.
State law allows an individual to claim only one property as a homestead
and
thus receive an exemption of 18 school mills on their principal residence,
but some residents are also claiming cottages or summer homes as homesteads.
Estimates show passing and enforcing such a proposal could net about
$35
million for the state’s School Aid Fund in FY 2004.
Senate Republicans are claiming their package would close a true loophole,
as opposed to Governor Granholm’s proposals, which appear to be
mainly new
or increased taxes.
Streamlined Sales Tax Bills Being Developed
The Department of Treasury is working on draft legislation that would
put
Michigan in compliance with the Streamlined Sales and Use Tax Agreement.
Michigan was part of a coalition of 33 states and the District of Columbia
that voted in November 2002 to approve a multi-state agreement.
The goal of the Streamlined Sales Tax Project, formed in 2000 by the
coalition, is to design, test and implement simplified sales and use
tax
systems across state lines. States would then provide software free
of
charge to retailers that would calculate, collect and remit the taxes
owed
on remote sales. This process is designed to level the playing field
between
brick-and-mortar retailers and remote sellers of goods, as well as to
simplify the process for businesses that operate in more than one state.
Michigan now needs to ratify the agreement that was signed by the
participating states in order for the changes to take effect here. MRA
strongly supports this initiative, as do Gov. Granholm and various
legislative leaders. When enough states participate in the Project,
Congress
may be spurred to action requiring this approach nationwide.
While there may be slight changes to Michigan’s current tax code,
it is
projected that little to no additional revenue will be realized from
the
changes to the tax base. While the base will not be expanded, new revenues
from collecting taxes owed on remote sales should bring in an additional
$300 to $400 million when the project is fully underway, and this will
continue to increase as the Internet and other remote sales continue
to
ratchet up.
KEY BILL INTRODUCTIONS:
HB 4689, sponsored by Rep.
Ruth Johnson (R-Holly), to prohibit products in
landfills in include beverage containers, whole tires, oil, lead acid
batteries, low-level radioactive waste, and hazardous waste.
HB 4690, sponsored by Rep. Ruth Johnson, to provide
definition of beverage
container in the solid waste management law.
HB 4701, sponsored by Rep. Bruce Caswell (R-Hillsdale),
to permit qualified
certain noncontiguous, wooded property as agricultural property exemption.
SB 498, sponsored by Sen. Patricia Birkholz (R-Saugatuck),
to prohibit
products in landfills to beverage containers, whole tires, oil, lead
acid
batteries, low-level radioactive waste, and hazardous waste.
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
