Employee Meals Tax Exemption
With the signing of Public Acts 328 and 329, the state Treasury Department will join 32 other states by ending its practice of taxing meals and beverages provided to employees at no-cost while working. In addition, employees will no longer be required to pay sales tax on the sale price of reduced-cost or discounted meals and beverages purchased for their immediate consumption while working. These changes become effective October 1, 2001 and eligibility is limited to foodservice establishments licensed by the Michigan Department of Agriculture. Proposal 00-02
The MRA played a key leader-ship role in a coalition that defeated the Proposal 2 ballot initiative by a wide margin. Proposal 2, if enacted, would have required a supermajority of the Legislature to adopt any bill which "intervened in municipal concerns." The practical effect for restaurant operators if Proposal 2 had passed would have been higher minimum wages, higher taxes, and more regulations.
Use of Organic Products
P.A. 316 creates a certification and registration requirement for certain businesses producing, handling, or preparing “organic products”. The legislation regulates restaurants, among other business, which advertise use of or preparation of organic products. The initial language was incredibly bureaucratic in nature and not feasible for restaurants. A subsequent revision created a tiered approach to restaurants. The approaches are as follows: 1) any restaurant advertising that they organically prepare dishes is subject to the act; 2) any restaurant advertising use of organic products but not making claims that the dish was organically prepared is subject to the record keeping portion only; and 3) any restaurant not using or making claims about organic products or dishes is not subject to the act. The MRA concerns were addressed by the MDA and the bill passed with MRA support.
Michigan Food Law of 2000
P.A. 92 of 2000 updates the existing food code for the first time in 23 years, brings provisions from several acts under one law, and adopts the 1999 FDA Model Food Code. Changes include: lowering cold-holding temperatures, strengthening bare-hand contact provisions, and creating a demonstration of knowledge provision. The MRA supported this legislation.
Resort Liquor Licenses
P.A. 91 of 1999 grants an additional 10 general resort and 20 $1.5M resort Class C liquor licenses for 1999 and 2000. The new law creates a minimum capital investment of $75,000 for the 10 Class C licenses. The MRA supported this legislation.
Logo Sign Expansion
P. A. 46 and 47 of 1999 takes the 60-site highway logo sign program statewide to nearly 300 interchanges state-wide. The program allows businesses meeting certain criteria to advertise on the food, lodging, or gas signs that appear near highway interchanges. The MRA supported this legislation.
SBT Phase-Out
In June, Governor Engler signed legislation phasing the Single Business Tax (SBT) out. The proposal phases the SBT out by cutting one-tenth of one percent each year for the next 23 years. The tax-cut would be suspended in years when the Budget Stabilization Fund–“the Rainy Day fund”–dips below $250 million. The reduction is retroactive to January 1999. The MRA supported this legislation.
“Fridays Off” School Start
P.A. 141 of 1999 requires that public schools and public school academies not hold classes on the Friday before Labor Day beginning in 2000. The law expires after the 2002 school year. The MRA supported this legislation.
SBT Component Change
P.A. 44 of 2000 changes the investment tax credit with a graduated investment tax credit. The new law provides for a graduated investment tax credit, allowing approximately 32,000 small businesses to receive a higher investment tax credit than the .85 percent prescribed by the 1999 SBT phase-out legislation. The MRA supported this legislation.
For a complete copy of an Public Act or Michigan Complied Law, go to www.michiganlegislature.org
