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Michigan Business Tax Fixes
Under the new
Michigan Business Tax, most MGA members are paying more taxes
— some significantly more — than they did under the Single
Business Tax. MGA was a founding member of a statewide
coalition and was successful in repealing the services tax.
MGA supports Senate Bill 1038,
introduced by Nancy Cassis (R-Novi), to remove all sales tax
and other fees collected by a business from the gross receipts
base of the Michigan Business Tax (MBT). Taxes and other fees
include sales, tax, tobacco tax, alcoholic beverage taxes,
bottle deposits and keg deposits. Without this fix,
businesses would be taxed on a tax when calculating their MBT
liability. MGA also supports Senate Bill 1242, introduced by
Senator Mark Jansen (R-Gaines Township, phases out the 21.99%
MBT surcharge over three years beginning January 1, 2009. MGA
will continue to work to correct the requirement to pay tax on
a tax and repeal the costly surcharge.
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Stop Proposed Expansion of Bottle Deposit Law
On April 17, 2008, Rep. Mark
Meadows (D-East Lansing), introduced House Bill 6000 to expand
the types of containers subject to a bottle deposit. MGA
opposes any effort to increase the number of returnable
containers brought into food stores. To maintain a safe,
sanitary environment under the current system is almost
impossible and to add more bottles and cans only multiplies
the potential for contamination, further compromising food
safety and security. In addition, the increased financial
burden that expansion would create would likely be more than
many small retailers could manage, forcing some out of
business.
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Promote Recycling
We support
legislation to create a fund to encourage more comprehensive
recycling in Michigan. The retail food industry has long
supported measures that capture the majority of solid waste to
expand recycling programs statewide, build a better recycling
collection and processing infrastructure, and spur recycling
related job growth.
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Continue Efforts to Repeal
Michigan’s Item Pricing Law
Michigan is
the only state in the country to require food retailers to
individually price mark virtually every product in the store.
We find the regulation, in light of today’s technology, to be
costly and burdensome to our industry. It’s a job killer
because it punishes businesses for operating in our state. We
urge the Legislature to take action. We support efforts to
modernize the law if they continue to include a provision to
exempt frozen and dairy products from individual price
marking. Scanner studies show that food retailers are more
accurate in their pricing practices and score higher than
general merchandise retailers. Item pricing is touted as a
“consumer protection,” but it actually hurts consumers by
driving up the cost of goods sold.
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Change
Food Stamp Payments to Twice a Month
For over 20
years, MGA has worked to change the way food stamps are
distributed. On April 25, 2008, the law finally passed to
allow the state to issue regular food assistance benefits two
times per month to an individual who is eligible for benefits
of $100 per month or more. We are currently working to appeal
a federal decision that prohibits states from changing their
distribution schedules, so that Michigan can start using the
new system to enable MGA member retailers to better stock and
staff their stores and to give food stamp recipients access to
fresh fruits, vegetables, dairy and meat throughout the month.
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State Begins Rollout
of WIC EBT Program
MGA advocated for Michigan to launch an Electronic Benefit
Transfer (EBT) Program for WIC, similar to the state’s
successful EBT Food Stamp program. We are happy that the
statewide EBT WIC rollout began in January and will continue
to work with WIC program representatives to work out the
numerous bugs in the system to disrupt MGA member store
operations as little as possible.
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Retailers May Now
Keep Unused Gift Card/Certificate Money
The
Legislature enacted new gift card legislation, which MGA
opposed with the exception of one bill that is a victory for
retailers. Effective September 30, 2008, unused gift
card/certificate money is to remain with the store instead of
being considered unclaimed property and being placed in a
state unclaimed property fund.
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Tobacco Bills
MGA opposes
Senate Bills 882 and 883 that make it possible for retailers
to lose their ability to sell any taxable product if they
violate the Tobacco Products Act. MGA was able to narrow the
language in the bills to better define how and when retailers
could lose their license.
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| Continue the Fight
to Stop Development of State Ergonomics Standard
Over the
continued objections of the business community and several
attempts by the Legislature to block them, a draft of
ergonomics regulations went to two governor-appointed
commissions for approval on August 25: the Occupational Health
Standards Commission and the General Industry Safety Standards
Commission. MGA and others have been harsh critics of the
attempt to promulgate a Michigan-specific ergonomics standard.
We support the federal government’s voluntary,
industry-specific ergonomics guidelines.
The draft regulations now in
hand, the General Industry Safety Commission is scheduled to
meet on October 8 and the Occupational Health and Safety
Commission will meet November 5. The next step will be for
the two commissions to formally consider the draft rule. If
the draft is accepted, the commissions must complete a
Regulatory Impact Statement. Public hearings must be held to
provide formal opportunity for public input on the draft rule.
Business advocates urge that the state not move forward with
the unnecessary and potentially business–breaking
regulations.
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Retailers
can now use Dry Tare Method to Weigh Fresh Meat for Packaging
MGA
supported the USDA’s Food Safety and Inspection Service (FSIS)
final rule – “Determining Net Weight Compliance for Meat and
Poultry Products” – regarding procedures to be used to
determine the net weight and net weight compliance of meat and
poultry products. The rule DOES NOT include the wet tare
method, where a product’s weight is adjusted for moisture
contained inside the packaging.
For many years, Michigan used the wet tare method. This meant
that retailers had to remove from the net weight of a product
any liquids that would be in the tray and soaker pad.
Effective October 9, 2008, retailers may only use the dry tare
method, where the moisture is included in the product’s
weight. The change to dry tare makes weighing products much
easier for retailers. Retailers simply have to subtract from
the weight of the whole item the actual weight of the dry foam
container and dry soaker pad.
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Food Safety
Law Updated
As part of a workgroup, MGA spent over a year helping to craft
legislation to keep our state’s food safety laws updated.
This comprehensive set of changes helps us in the battle
against food-borne illnesses and strengthens Michigan’s food
safety net enhancing consumer confidence in the food chain.
Public Act 113 of 2007 was signed into law on October 16,
2007.
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MGA
Participates in Homeland Security Training
Michigan Grocers Association participated in a two-day
homeland security training exercise to review, test and
evaluate the State of Michigan’s Emergency Public Information
Plan.
The Michigan Department of Agriculture and included Public
Information Officers and other staff from the governor’s
office and 12 State of Michigan departments, including the MDA,
Michigan Department of Community Health, Michigan Department
of Environmental Quality, Michigan Department of Labor and
Economic Growth and the State Police, initiated the exercise.
The food business has an obligation to be prepared for any
disaster. Having opportunities such as this for multiple
departments and organizations to collaborate will increase the
chances of successful disaster recovery.
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Support Proposals to Expand Alcohol Sales
Bills have been introduced to allow retail liquor licensees to
sell alcohol:
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2 a.m. until 4 a.m. if the business holds a late night
permit, which would carry a $2,500 application fee.
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| On
Sunday between the hours of 7 a.m. and 12 noon if the
business holds a Sunday morning permit, which would carry an
application fee of $1,500. |
We
support the current bipartisan bills. |
