Legislators set to tackle key issues
As the Michigan Legislature begins the second half of
its two-year session, it continues tackling numerous issues important
to businesses’ bottom lines. And once again it will work on balancing
a state budget that already appears to be nearly $500 million in the red.
Some of the key issues in play include:
• Gross receipts: When the Single Business Tax was
replaced by the Michigan Business Tax last year, the business community
did not expect that the Treasury department would include sales tax under
the definition of a business’s gross receipts. Under Treasury’s
definition, retail businesses would be taxed on the sales tax they collect
and remit to the state. MRA is set to introduce legislation in 2008 to
correct this, viewing it as an unfair tax on a tax.
• Gift cards: Lawmakers have targeted gift cards
for further regulation, seeking to prohibit businesses from selling gift
cards that expire in less than five years from the date of sale. In addition,
retailers would no longer be allowed to charge an inactivity fee.
In exchange for these regulations, however, the requirement to escheat
the value of the card (send the unredeemed balance to the state as unclaimed
property) would be lifted, and retailers could instead keep the unredeemed
value after five years of inactivity.
• Great Lakes Compact: Currently, two packages of
bills seek to ratify the Great Lakes Compact and send it on to Congress
for federal approval. In the House, Democrats have introduced a more restrictive
package. In the Senate, Republicans are pushing their package, one which
the business community views as better for the economy.
In addition to ratifying the compact, the bills seek to regulate large
water withdrawals in the state through an online computerized assessment
tool that determines if a withdrawal will impact water resources near
the source.
Each respective package is expected to pass the chamber in which it was
introduced, then negotiations between the Democrats and Republicans will
kick into high gear.
• Repeal of PA 141: The large utility companies
want to repeal the act that allows electric choice in Michigan and return
to monopoly status. MRA opposes this move and favors greater competition
in the marketplace to lower costs to consumers and businesses.
• Driver’s licenses: Proposals are in the
works by the Secretary of State’s office to upgrade Michigan driver’s
licenses in order to provide greater security from fraud and homeland
security risks.
Two options are under consideration: stick with the current license with
upgrades to help prevent fraud, or go with the new “enhanced”
license that will allow residents to cross international borders and board
international flights without a passport once the federal “Real
ID” law takes effect.
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