Services Tax "Shell" Bill Passes House
A vehicle bill, HB 5198, that would allow for a sales tax on services passed the House late last night and is headed over to the Senate. The bill is basically a blank slate that can be filled in later with rates and services to be taxed. The reason for the move was to avoid the "five-day rule" which requires that any bill sent to one chamber from another (i.e. from House to Senate) has to "lay over," or be there for five days, before any further action can be taken. By doing this, the bill has a head start if and when the Senate plugs in the specific provisions for a services tax. Another shell bill, HB 5194, was also passed that would do the same thing for an income tax hike. The services tax shell bill passed with 57 YES votes against 51 NO votes.
- All Republicans voted against the services tax bill except: Richard Ball (Bennington Twp.), Brian Calley (Portland), Judy Emmons (Sheridan), Ed Gafney (Grosse Pointe Farms), Dave Hildebrand (Lowell) and House Minority Floor Leader Chris Ward (Brighton).
- All Democrats voted for the services tax bill except: Dudley Spade (Tipton), Mary Valentine (Muskegon), Marc Corriveau (Northville), Marty Griffin (Jackson) and Mike Simpson (Jackson).
Senate holding strong against services tax, but barely
According to the legislative reporting service, Gongwer News, Senate Majority Leader Mike Bishop has indicated "a sales tax has never been on our radar." NFIB and other business groups participating in the Stop the Services Tax Web site met with Senate leadership staff yesterday to emphasize our opposition to the services tax and to thank them for resisting attempts to consider such an option. However, as previously reported, Sen. Valde Garcia has been indicating his support for a services tax and he only needs to convince one other Republican Senator to achieve a majority vote on the issue.
Pressure must be maintained against a services tax NOW!
With Sen. Garcia willing to cut a deal on a services tax and the House passing a shell bill last night for the sole reason of taxing services, we really need to keep up the pressure. Contact your lawmakers and let them know that there is NO support for this bad idea!
Urge your lawmakers to vote NO on a sales tax on services!
