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Governmental Affairs


April 2, 2004

 

KEY LEGISLATION:

Streamlined Sales Tax Must Wait Until After Break

The streamlined sales tax bill, which was scheduled to pass out of the House Tax Policy Committee last week, was not taken up before the legislature adjourned for spring break. Time ran short, and passing it would have required the House to re-caucus to secure the votes necessary for passage.

As the clock was running out, it was decided to take the bills up when they lawmakers return from break on Tuesday, April 20. MRA will continue to make sure the necessary votes are there to achieve passage of the "Main Street Fairness" measure.

 

Living-Wage Preemption Sent to Governor

The House was able to get to legislation that preempts local living-wage ordinances. The House concurred with the Senate version of House Bill 4160, which amends the Minimum Wage Law to prohibit a local unit of government from enacting, maintaining or enforcing a minimum wage greater than that prescribed by state law.

With the changes, however, the bill would not prohibit a local minimum wage requirement that governs compensation paid by the local unit to its employees. Nor would it prohibit it if the rate applied to a procurement contract for goods or services that the local unit awarded to a private vendor with more than 25 employees.

While passage is a significant victory for businesses in the state, Governor Jennifer Granholm is expected to veto it.

 

Income Tax Cap Unsuccessful in House

House Joint Resolution T, sponsored by Rep. Leon Drolet (R-Clinton Twp.), failed to garner the 73 votes required to place it on the November ballot. The resolution would have given voters the chance to cap Michigan’s income tax rate at 3.9 percent.

While the vote on the resolution was not recorded, it appeared that it was roughly 10 votes shy of the 73 necessary to achieve a two-thirds majority. It also appeared that approximately seven Republicans joined the Democrats in voting no on the proposal. The Republicans voting no are all term-limited and were able to vote against their caucus.

Two Democrats supporting the measure are both potentially vulnerable in the upcoming election. Had the dissenting Republicans voted with their caucus, these Democrats could have been forced into a difficult situation. Drolet insisted the measure could come up again after business and anti-tax groups are able to apply more pressure for yes votes.

 


KEY BILL INTRODUCTIONS:

No New Bill Introductions to Report at this Time.

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