Legislative Affairs
& Political Action
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Top Legislative Issues Affecting Your Business
MBT Surcharge Repeal
The Michigan Business Tax (MBT) places a 22 percent surcharge on top of a business owner’s tax liability. This surcharge needs to go.
Senate Bill 1, introduced by state Sen. Mark Jansen (R-Grand Rapids) quickly passed the state Senate, with all Republicans and a handful of Democrats supporting it. The bill phases-out the 22 percent surcharge in the MBT over a two-year period. The bill is now in the state House Tax Policy Committee.
State Reps. Bill Rogers (R-Brighton), Brian Calley (R-Portland) and Dave Hildenbrand (R-Lowell) have each introduced similar bills in the state House. All of these bills are in the House Tax Policy Committee.
MRA supports repeal of the MBT surcharge.
Status: Senate Bill has passed the Senate and is in the state House Tax Policy Committee.
MBT Small Business Credit
The Michigan Business Tax (MBT) has a small business credit, which works like an alternative tax rate on profits for smaller businesses. This credit needs to be expanded.
State Sen. Nancy Cassis (R-Novi) has introduced Senate Bill 69, which expands elgibility for the small business credit, or alternative profits tax rate, in the MBT. This credit provides tremendous relief under the MBT to small businesses provided that they meet three criteria. Senate Bill 69 expands the owner income qualifier. Numerous bills have been introduced in the state House of Representatives as well.
MRA supports the bills expanding the credit.
Status: Senate Bill 69 passed the Senate and is in the state House Tax Policy Committee.
Unemployment Benefit Eligibility Expansion
The federal stimulus package offers one-time money for Michigan to permanently expand eligibility for unemployment benefits. This is a bad deal and Michigan needs to reject it.
House Bills 4785 and 4786, introduced by state Reps. Rick Hammel (D-Mt. Morris) and Bert Johnson (D-Detroit) have been introduced in the state House which would expand eligibility for unemployment benefits to classes of people who are not currently eligible, most notably to part-time workers. These bills passed the House of Representatives and are in the state Senate Commerce and Tourism Committee. Senate Democrats attempted to bring the bills directly to the floor for a vote but Senate Repulicans with the assistance of the MRA , defeated this effort.
It should be noted that the state Unemployment Insurance Trust Fund, wholly-funded by employer taxes, is already deep in debt to the federal government, almost $2 billion.
MRA opposes the bills.
Alcohol Catering
Class C licensed liquor establishments often apply for SDM licenses to offer beer and wine at catered events. No such opportunity exists for spirits. MRA wants to change that.
State Sen. John Pappageorge (R-Troy) has introduced Senate Bill 186 to allow Class C liquor licensees to also sell beer, wine and spirits in their original sealed container for service by the licensee at a catered event off the licensed premises. The Senate passed the bill and is now in the state House Regulatory Reform Committee.
MRA supports the bill.
Workplace Ergonomics Regulations
The Granholm Administration is steering Michigan to being only the second in the country to have an onerous, cumbersome and costly one-size-fits-all workplace ergonomics mandate. This effort needs to be stopped.
State Sen. Alan Sanborn (R-Richmond) introduced Senate Bill 93 to prohibit the Granholm Administration from creating a mandatory statewide regulation on workplace ergonomics. MRA strongly supports the bill. The bill passed the state Senate and is now in the state House Labor Committee.
State Rep. Goeff Hansen (R-Hart) introduced House Bill 4154 to accomplish the same goal. The bill is in the House Labor Committee.
MRA supports the bills.
Status: Senate Bill 93 passed the state Senate and is now in the state House Labor Committee.
Youth Employment Reform
Michigan’s youth employment law is about the most restrictive in the country in terms of how many hours youths are allowed to work. MRA is working to enact a common sense standard.
State Sen. Tony Stamas (R-Midland) has introduced Senate Bill 25 to standardize statewide the allowable amount of hours that youth employees are allowed to work while school is in session. The bill also increases the maximum number of hours. The bill passed the Senate and is now in the House Labor Committee.
MRA supports the bill.
Sunday Morning Alcohol Sales
Selling alcohol before noon on Sunday is prohibited in Michigan. MRA thinks this needs to change.
State Rep. Bert Johnson (D-Detroit) introduced House Bill 4642 to allow sales of alcohol on Sunday mornings. Unlike bills in previous legislative sessions, his bill would not require a liquor licensee to apply for a permit to allow this activity, and therefore there is no additional fee added.Local units of government would be allowed, either by governing body action or vote of the people, to completely prohibit Sunday morning sales within their jurisdiction.
State Sen. Gilda Jacobs (D-Huntington Woods) has introduced a very similar bill in the state Senate, Senate Bill 63.
Additionally, as legislative leaders and Granholm Administration budget officials continue discussing potential solutions to the fiscal year 2010 and 2011 budget deficits, this issue is expected to be thrown into the mix.
MRA supports the bills.
Once again, the Granholm Administration and some legislators are trying to increase liquor license fees. This idea has been defeated several times already. Will they be successful this time? The Granholm Administration has proposed to double all liquor license and permit fees. During House debate on a bill to provide the budget for the Michigan Department of Energy, Labor and Economc Growth – which houses the Michigan Liquor Control Commission – references to $24 million in increased liquor license and permit fees were stripped out at the urging of the MRA. However, the issue is far from dead. House Bill 5056, introduced by state Rep. Rick Hammel (D-Flushing) provides this increase and is in the House Appropriations Committee.
MRA opposes the bill.
Status: As lawmakers and the governor debate a resolution to the fiscal year 2011 budget deficit, this issue remains on the table.
Sales Tax Collection Credit
Restaurants that remit their sales taxes to the state on a timely basis every month get to keep a small portion as a reward and to hhelp cover their costs. Some legislators want this to end. State Rep. Mark Meadows ahs introduced House Bills 5421 and 5422, which would reduce the amount that restaurants and other businesses who collect and remit sales taxes for the state get to keep as a reward and to cover the costs associated with collecting and remitting sales taxes for the state. MRA opposes the bills. Status: House Bills 5421 and 5422 are in the state House Tax Policy Committee. Hearings have been conducted on the bills although a committee vote has yet to take place.
Should cities, townships and counties be allowed to assess taxes on alcoholic beverages served in bars and restaurants? Some in the state House of Representatives think so. State Rep. Marie Donigan (D-Royal Oak) has introduced House Bill 5056 to allow cities, townships and counties to assess 50 cents per drink taxes on alcoholic drinks served in restaurants and bars. The bill is in the House Tax Policy Committee.
MRA opposes the bill.
Additional Issues You Should Know About...
Exclusive Wine Distribution Territories
Michigan has exclusive distribution territories for beer. Wine wholesalers want to wine to now have exclusive distribution territories as well. MRA is a part of the debate. State Sen. Buzz Thomas (D-Detroit) introduced Senate Bill 1430 to put an end to dual wine distribution arrangements in Michigan and create exclusive distribution territories. Existing duals are grandfathered in the bill and can be extended when the contract ends. State Rep. Andrew Kandrevas (D-Southgate) introduced House Bill 6224, which is identical to Senate Bill 1430. MRA is concerned about legislative efforts which would restrict competition in product distribution to restaurants and taverns, but is currently taking a neutral position on the legislation as discussions take place between MRA and wholesaler representatives. Status: Senate Bill 1430 is in the state Senate Economic Development and Regulatory Reform Committee. House Bill 6224 passed the state House Regulatory Reform Committee is currently on the state House floor.
Card Check Unionization
Employees are able to decide whether or not they want to be a part of a union through a private and secret ballot that preserves their rights. Big labor bosses in Washington DC don’t like that.
State Sen. Mark Jansen (R-Grand Rapids) introduced Senate Resolution 16, which calls on the U.S. Congress to defeat the proposed card check legislation in Washington DC. If passed, the card check bill in Congress would allow unions to organize a workplace by simply collecting signed cards from 50 percent of a workplace’s employees, plus one. The Senate passed the resolution.
State Rep. Fred Miller (D-Mt. Clemens) introduced House Resolution 10, calling on the Congress to pass the card check bill. The state House of Representatives passed the resolution.
MRA supported the Senate resolution and opposed the House resolution.
Tourism Promotion Funding
Support to fund Michigan tourism promotion is about to drop from $30 million to about $6 million. Tourism promotion is successful for Michigan, and actually increases tax revenues. We must continue to support tourism promotion. State Sen. Jason Allen (R-Traverse City) has introduced Senate Bill 18 to provide a permanent source of funding for tourism promotion in the state by dedicating a very small percentage of the state sales tax toward a tourism promotion fund. MRA was successful working with an industry coalition to significantly increase tourism promotion funding for a two year period, but now it is time to create a permanent source of funding or risk a significant drop-off in available funds. The bill is in the Senate Appropriations Committee.
MRA supports the bill.
Minimum Wage
Every legislative session, some politicians introduce bills which would increase the minimum wage and increase the cost of doing business in Michigan.
Thus far this session, no legislation has been introduced which would raise the minimum wage or the minimum payroll wage for tipped employees.
Status: No legislation has been introduced yet. MRA is monitoring developments on a potential ballot question.
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