April 23, 2004

Michigan Restaurant Association Celebrates Defeat of Liquor Tax Increase & the Death Tax

The Michigan Restaurant Association today applauded House lawmakers for defeating two proposals that would have resulted in major tax increases for Michigan restaurateurs and thousands of small businesses. House Bill 4865, a bill that would have increased the tax on liquor, was defeated by an overwhelming 81 to 22 votes.  Under the proposal, restaurant operators with liquor licenses stood to pay anywhere from $1,000 to $6,000 more for liquor purchases, depending on the amount they buy. House Bill 5708, which would have preserved the death tax in Michigan, went down to a similarly resounding defeat. Under the bill, thousands of Michigan families and small businesses – including restaurants – would continue to have the value of their homes, assets and small businesses taxed upon their death even after the phase-out of the federal death tax. “Today is a victory for thousands of restaurant owners in this state. We’re thrilled that state lawmakers understand raising taxes isn’t the answer to solving Michigan’s budget woes,” said MRA Executive Director Rob Gifford. “Raising the liquor and death taxes would have placed a great burden on Michigan bars and restaurants.” The state would have generated about $32 million from the liquor tax increase, and $94 million from the death tax, but restaurant operators argued the gain would have been small compared to the havoc it would have wrecked on Michigan’s small business owners. Founded in 1921, the Michigan Restaurant Association represents more than 4,500 Michigan foodservice establishments. The foodservice industry plays an integral role in Michigan’s economy, employing more than 345,000 people and creating $11 billion in annual sales.  For more information, call (517) 482-5244, or visit the MRA website at www.michiganrestaurant.org.