Lawmakers have returned to the Capitol after a two-month summer break and several issues that impact small business are on their plate for action this fall.
NFIB supported legislation that would accelerate the phase-out of applying the sales tax to the value of a trade-in when purchasing a vehicle or RV was vetoed by the Governor in July. Word is that the legislature may move to override the veto. The bills, SB 94 and SB 95, passed the House by 88-19 votes and the Senate by 37-0 votes – a vote margin that, if repeated, would meet the two-thirds vote needed to override the veto. If successful, it would be the first veto override since 2002.
NFIB will be working with other business groups this fall to pass legislation at the state level to forbid local governments from enacting taxes on beverages and food items that they deem to be “unhealthy”. Though often dubbed the “pop” or “soda” tax, it always ends up being applied to other beverages and food and snack items creating a regulatory nightmare for small business. You can read more about this HERE.
Treasury continues its policy of “mission creep” in suddenly deciding that something that has always been considered a service should now be classified as a “product” so that a state sales tax can be collected. The latest victim of this practice are dental labs that provide denture and other dental prosthetic services for dentists. NFIB will be working with the Michigan Chamber and the Michigan Dental Association to pass legislation to resolve the matter.
After tackling the contentious issue of teacher’s pensions in the spring (more on that HERE), legislative leaders have announced that they are going to make a concerted effort to address the other government pension “elephant in the room” that being the state’s more than 2,800 government entities such as school districts, cities, townships and counties that have pension and other post-employment benefit obligations (OPEB) underfunded by an estimated $17.4 billion. NFIB members support action to address out of control government employee benefit costs. Look for a bitter partisan fight on this one.
Legislative leaders from both parties are saying that reform of Michigan’s no-fault insurance system will be a high priority in the fall session. NFIB supports legislation to address the state’s high auto insurance rates, however, past efforts have been unable to gain any traction on reforming a system that has many powerful groups (hospitals, physicians, medical specialists, attorneys, etc.) living off the generous benefits provided in the current law. However, with both parties finally agreeing that something must be done we are looking forward to taking another run at this issue.
