October 2007 Field Report -
Southeast Michigan
By: Tony Daunt – Southeast Michigan Field Director
Ax the Tax
The Michigan Association of REALTORS® is proud to announce that our Board of Directors and the Public Policy Committee have both voted unanimously to approve our participation in the Ax the Tax Coalition. This is an expansive and diverse group of over 40 business organizations that have joined forces to advocate for the outright repeal of the disastrous 6% sales tax on certain “discretionary” services that was passed as part of the 2008 budget agreement.
"With the fragile economy that Michigan is facing, this is not the time to add more taxes," said Bill Martin, MAR CEO. "These taxes will have a drastic impact on Michigan businesses and taxpayers. Business owners will have to make tough choices that may include closing up shop or moving out of the state." Martin continues, "The REALTOR® community in Michigan has worked hard to fight sales tax on services. We believed it was a bad idea when Gov. Granholm proposed it several years ago, and we still believe it’s a bad idea today. We want to see Michigan’s economy thrive again, and this is not the way to reach that goal."
The Ax the Tax Coalition is made up of individual job providers, trade associations and chambers of commerce from across Michigan. Members of the group are committed to working with the Legislature to repeal the sales tax on services before it goes into effect on Dec. 1, 2007. Should the Legislature fail to act, the coalition is making plans to gather petition signatures and take the repeal directly to the voters through a statewide ballot effort.
The Legislature and the Governor extended the six percent sales tax to a list of still undefined services as part of a plan to balance the fiscal year 2008 budget. The new tax was approved in the middle of the night on Sept. 30. No public hearings were held on the new tax, how it would be implemented or who would be required to pay it. In the two weeks since the tax was passed and in response to the anger and frustration of job providers and consumers, economic leaders have been meeting to form a coalition and develop a plan to repeal the tax. With the formal announcement of this coalition, the public will begin to see an intense lobbying and grassroots effort to push for legislative repeal as well as the gathering of petitions signatures to put the repeal before the voters.
Other founding members of the Ax the Tax Coalition include the Associated Builders and Contractors of Michigan, Michigan Association of Insurance Agents, Michigan Chamber of Commerce, Michigan Grocers Association and SEMCO Energy, among many others. The variety of business groups associated with this effort is a testament to the scope and severity of this job-killing tax.
We will continue to work on behalf of your interests throughout this process. Please look for further updates on this issue from the various publications and communications that are sent to you from MAR each week.
Field Staff Office Visits
We are lucky to have such a capable staff of lobbyists and advocates working on our behalf in Lansing. As your area MAR representative, it is my responsibility to work with these individuals to keep you informed so that you are aware of what your state legislature is doing for (or, in some cases, to) you.
Having said all that, the best way to share the latest news with the largest number of area REALTORS® is to attend your weekly sales meetings and give it to you in person. I am willing and able to travel to any office, at any time, on any day of the week. If you are a broker or an office manager, please take this offer to heart and call me up. My number is: 517.812.4134. If you’re a sales agent, mention this to your broker and get them to bring me in.
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