KEY LEGISLATION:
Tobacco Tax Passes House on Second Attempt
Governor Jennifer Granholm emerged victorious in the
House on her proposed
tobacco-tax increase. The bill raising the tax by 75-cents per pack
passed
by the narrowest margin, with 42 Democrats and 13 Republicans providing
the
55 votes required for passage.
Opponents of the bill, which included MRA, did gain
a few key amendments,
including the exclusion of other tobacco products (OTP) from the tax
increase. This is especially important to owners and operators of cigar
and
specialty tobacco shops in Michigan.
However, the effective date was moved up from October
1 to July 1. The
measure is expected to generate about $269 million a year and help plug
major holes in the state budget.
An attempt last week to pass the bill failed. This week,
however, Granholm
personally lobbied numerous legislators and even visited the House
Democratic caucus briefly before the vote. After the visit, her
representatives worked the issue aggressively on the floor.
The bill now goes to the Senate, where some of the changes
made to the bill
could be stripped out. If that happens, the bill would be sent to a
conference committee. MRA will continue to aggressively oppose the tax
increase, as it will hurt Michigan retailers who sell a legal product.
MRA
will also work to prevent the OTP language from being stripped out of
the
bill as it moves forward.
Streamlined Sales Tax Package Passes House
The House finally took up and passed the Streamlined
Sales Tax Proposal
package designed to help level the playing field between in-state retailers
and remote sellers.
While some legislators tried to make the argument that
this is a new tax or
a tax on Internet usage, members had been too well educated by MRA to
believe the misinformation. The package passed the chamber by a vote
of
78-26. The Senate is expected to take the bills up soon, and it is hoped
they will be ready for the governor’s signature before summer recess.
FTC to Rule on Petroleum-Pricing Legislation
At MRA’s urging, House Transportation Committee
Chair Gene DeRossett
(R-Manchester) requested an opinion letter from the Federal Trade Commission
(FTC) on House Bill 4757, the petroleum-pricing bill strongly opposed
by
MRA. The bill is both anti-consumer and anti-free market, and it would
lead
to higher gas prices in Michigan.
Other states with similar laws requiring gas stations
to justify their
prices before selling gasoline have been fighting to repeal them and
have
also asked the FTC to weigh in on these types of laws. To date, the
FTC’s
findings have supported MRA’s assertions that these laws produce
more harm
than good.
Among the questions DeRossett asked the FTC regarding
HB 4757 are:
• What impact would this legislation have on consumers if it were
signed into law?
• Would the law harm consumers by significantly raising prices?
• Are there existing protections against "predatory pricing"
found in the
federal antitrust law, and would this legislation be duplicative in
nature?
• Are there any scholarly studies or court decisions in recent
years that
address the effect of "below-cost" pricing in relation to
the creation of monopolies?
No action is expected on the legislation while DeRossett
awaits a response
from the FTC.
Family Independence Agency Seeks Retail Partners
Families with school-age children who are eligible for
Family Independence
Program benefits in August will receive extra money—the School
Clothing
Allowance—to help with the cost of school clothing.
The Family Independence Agency is encouraging clothing
stores in Michigan to
work with them to offer extra discounts on clothing to these individuals.
If
you wish to be a participating retailer, please contact Judi Brown-Clark
at
the Family Independence Agency at 517.335.2364. Your business name will
be
listed on the FIA Web site, encouraging its clients to shop at your
store.
Participating retailers should expect these customers to be visiting
their
stores in early August.
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
