LANSING – An initial meeting of more than 60 Michigan business organizations is trying to build a coalition to repeal the state’s newly enacted expanded sales tax on services, even if that means focusing on a voter-initiated repeal in November 2008.
Following the meeting that was held Tuesday morning at the offices of the Small Business Association of Michigan, the various groups were being sent an email from SBAM urging them to join into a coalition to focus on repeal of the tax.
Already a number of groups have agreed to join that coalition, including the Michigan Chamber of Commerce, the National Federation of Independent Business and the Grand Rapids Chamber of Commerce.
Todd Anderson of SBAM said the groups had decided to focus on repeal of the tax, even though there was some acknowledgement that repeal is not likely without some form of offsetting taxes to make up the estimated $750 million in state revenues it would raise.
Finding that money will be the job of the Legislature and administration, Anderson said. The business groups are going to focus solely on repealing the tax.
“We understand they will have to come back with revenue,” Anderson said. “But they focused on a budget problem and the real problem is an economic problem.”
Governor Jennifer Granholm has said she will consider business concerns about the tax but that any changes to it have to ensure there will be no further cuts to the state’s safety, education and health care systems.
The meeting took place the same day that Rep. Dan Acciavvatti (R-Chesterfield) announced he had put in legislation to repeal the tax that was adopted a week ago as part of the fiscal fix to the 2007-08 budget.
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