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State Senate delays start of service tax
Saturday, November 3, 2007 12:06 AM EDT
 
LANSING — The Michigan Senate on Thursday voted to delay the start date of the proposed 6-percent sales tax on “nonessential” services.

The legislation was approved 22-14 and would change the start date of the tax from Dec. 1 to Dec. 20.

State Sen. Tony Stamas, R-Midland, voted for the delay and said this is the start of the work toward repealing the tax.

“This delay is tied to a bill that will repeal (the tax),” Stamas said. “I think this bill is a vehicle bill. It gives us the opportunity to have discussions with the House and governor (Jennifer Granholm) so all the parties can come together and agree to repeal it before it takes effect.”

In an earlier conversation Thursday before the Senate vote, Stamas, who voted against the services tax, said, “I think in the short term, the service tax is detrimental. It will hurt small businesses. They don’t need this additional burden put atop their shoulders.”
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State Rep. Kevin Elsenheimer, R-Bellaire, voiced similar concerns about the service tax in an interview Thursday morning.

“The service tax is a tax that certainly has to be repealed,” Elsenheimer said. “It shouldn’t surprise anyone that this service tax is being repealed quickly. It can’t come too soon.” He, too, originally voted against the service tax.

The service tax was approved Oct. 1 after a four-hour partial shutdown of the state government. It affects about 60 services such as bail bonding, dating services, tanning, massage, skiing, self-storage, landscaping and investment advice services. For a complete list visit www.michigan.gov/taxes.

— Cathy Landry
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