Bills Pass to End Trade-In Sales Tax

Sales tax on trade-in motor vehicles, recreational vehicles, and boats will no longer be charged at current rates after the House and Senate passed bills on Tuesday to discontinue the tax on a purchase of any of these vehicles.

House Bill 4234, sponsored by Representative Andrea LaFontaine (R-Richmond) was sent to Governor Rick Snyder after passing the Senate 38-0 then through the House 101-7. The Governor’s administration argued that with the end of the sales tax there would be a revenue loss to the state but eventually agreed to a phase-out, which would help to minimize and spread out the revenue impact.

Senate Bill 89, sponsored by Senator Dave Robertson (R-Grand Blanc), which provides for the phase out, was also sent to the Governor.

The agreed-upon phase out, which begins December 15^th upon the Governor’s signature, calls for a $2,000 sales tax exemption applied to the value of a vehicle used as part of the purchase of a new one. The exemption would grow by $500 each additional year until it reaches the $14,000 cap.

SB 89 also has a provision stating that if Medicaid expansion is repealed then there will be a stop to the sales tax phase-out, and the full exemption will be implemented.

The House and Senate passed similar bills in the 2011-12 term, but the legislation was not sent to Governor Snyder because of the administration’s revenue impact concerns. An analysis of these bills revealed there would be a $233 million reduction in state revenues when the sales tax was removed from the purchase of new motor vehicles, recreational vehicles and boats.

posted by PAA Online , Friday, October 25, 2013 11:18 AM
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Bridge Card Users Could See Certain ATM Prohibitions Debated

A package of bills was passed by the Senate Tuesday that would disallow liquor stores, horse racing tracks and strip club ATM’s to provide cash withdrawals to those with state issued Bridge Cards.

It was shown last year that Motor City Casino ATM’s had tens of thousands of dollars withdrawn by those using a Bridge Card, which led to last year’s Senate prohibition of the use of Bridge Cards within casinos.

Senator Morris Hood III (D-Detroit) was in support of the prohibition of the use of Bridge Cards in casinos and strip clubs but was against the ban of usage at liquor stores. This is because in certain parts of his district, liquor stores may have the only ATM’s nearby which would create a problem for those with little to no modes of transportation.

Senator Rick Jones (R-Grand Ledge) said that another aim of this package of bills is to receive federal “Temporary Assistance for Needy Families” grants, which would be accomplished by Michigan complying more with the federal government.

posted by PAA Online , 11:17 AM
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House Criminal Justice Committee Tackles Skimmers and Squatters

The House Criminal Justice Committee approved a package of bills Wednesday that would ban “skimmers,” devices that obtain others’ card information while they’re using an ATM or other machine that reads credit cards.

House Bills 5050, 5051, 5052, 5053, and 5054 would make it a felony punishable by up to five years in prison and a fine of up to $100,000 to be in possession of, transfer, purchase, install, or utilize a skimmer.

Testimony was also heard on bills that would prohibit “squatting,” which is when a person who lacks permission enters and proceeds to live in a vacant home or building.

House Bills 5069, 5070, and 5071, as introduced, apply the criminalization of “squatting” to buildings with a state equalized value of $50,000 or more; however, the package’s sponsor, Representative Kurt Heise (R-Canton Township), stated during testimony that he was willing to work with Committee members on making the legislation better.

posted by PAA Online , 11:17 AM
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Governor Snyder Opens New Nonprofit Which Will Disclose Donors

Governor Rick Snyder’s “NERD” fund, the nonprofit fund that created much controversy due to the refusal to disclose its donors, will be shut down at years-end to make way for a new fund that will disclose contributors.

Those that donated the more than $1.5 million to the New Energy to Reinvent and Diversify (NERD) Fund will not have their names revealed.

Listed as a social welfare organization in the U.S. Tax code, the NERD fund was completely within the parameters of the law by choosing not to disclose their donors. The event that led to the negative publicity was the Democrats inquiring into the Education Achievement Authority that led to revealing that the NERD fund paid the salary of a top advisor to the Governor.

The situation was under more scrutiny after the revelation that the fund pays for Detroit Emergency Manager Kevyn Orr’s condominium in the city.

According to the Governor, the issue of NERD fund contributors had grown into an unnecessary distraction and the new fund will have the same goal as the old, to offset the costs of government, without having to use taxpayer dollars.

posted by PAA Online , 11:16 AM
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October 18th Trivia Results

October 18^th Survey Results

Given the major events last week in Washington, DC, PAAdvisory took a break from our trivia and returned to our informal polling questions. Readers were asked, now that the federal government shutdown and debt ceiling debates are resolved, at least temporarily, who do you blame?

U.S. President Barack Obama

The U.S. House Republican Majority

The U.S. Senate Democratic Majority

All of the above

The results were almost evenly split. 36 percent of respondents blame the U.S. House Republican Majority, 32 percent of respondents blame U.S. President Barack Obama, and another 32 percent blame “all of the above.” No one laid the blame on the U.S. Senate Democratic Majority.

posted by PAA Online , 11:15 AM
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PAAdvisory Briefs

Donohue Named CRAM ED

The County Road Association of Michigan (CRAM) has named Denise Donohue to succeed John Niemela as Executive Director. Mr. Niemela is retiring at month’s end after 17 years in the position. Ms. Donohue was most recently the head of her own communications firm and had spent time as the Executive Director of the Michigan Apple Committee.

Review Team to Tackle Royal Oak Township

The Local Emergency Financial Assistance Loan Board determined this week that evidence exists pointing to a probable financial emergency in Royal Oak Township. The decision enables Governor Rick Snyder to appoint a review team for a more in-depth review of the township’s finances and to recommend next steps. The Township has a budget deficit of $496,416 at the end of the last fiscal year, up from $301,544 the prior year.

McTavish Likely Serving Last Term As Auditor General

Tom McTavish, CPA, who has served as State of Michigan Auditor General for 24 years, is not likely to seek reappointment after his term ends at the end of October. It hasn’t been said why McTavish wouldn’t seek reappointment but agreed to continue to serve while the search for the new Auditor General was conducted. If McTavish serves past November 2he will be the longest serving Auditor General in Michigan history. The Auditor General is appointed by the Legislature for an 8-year term.

Detroit Bankruptcy Court to Have Governor Snyder Testify Monday

Governor Rick Snyder has agreed to testify before the Detroit Bankruptcy Court Monday to determine whether or not Detroit is eligible for Chapter 9 bankruptcy. Governor Snyder was deposed for three hours on October 9^th by attorneys fighting for those who opposed the city’s filing of bankruptcy. It is expected that the trial will last into November.

posted by PAA Online , 11:13 AM
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Question of the Week 10-24-13

posted by PAA Online , 10:55 AM
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