Small-Business Groups Send Letter to Senate
To: Honorable Members of the Michigan Senate
From: Associated Builders and Contractors
Automotive Service Association of Michigan
Bowling Centers of Michigan
Michigan Association of Home Builders
Michigan Restaurant Association
Michigan Grocers Association
Michigan Association of Insurance Agents
Michigan Lumber and Building Materials Association
Michigan Pest Control Association
National Federation of Independent Business
As you know, the House has sent over to you HB 5198, a vehicle bill for a sales tax on services that can be filled in later with rates and services to be taxed.
We are writing to urge you to avoid the temptation to create any new taxes on services that are currently not taxed and to not take any action on this bill.
The effect of a tax on any services, even so-called "luxury" items, is neither good public policy nor would it improve the already bleak economy that has left many Michigan families struggling.
In addition, many businesses will have a difficult time dealing with both a new business tax and a services tax all at once. Compliance will be an administrative nightmare adding to the confusion of also attempting to figure out the new Michigan Business Tax.
A services tax should be one of the least-favored options you consider. Finally, remember that polls on the governor's "two-penny" plan showed little public support.
We do not envy the task before you and we again ask that you do not support efforts to expand the sales tax to services in any manner.
Thank you for your support of small business!
cc: Michigan House
Urge your lawmakers to vote NO on a sales tax on services!
