Tax Increase Dead or Not?
March 26, 2007March 26, 2007 2007 Senate Majority Leader Mike Bishop said that with the defeat of the sales tax on services last week, any proposal for a tax increase for the fiscal year ending 9/30/07 was off the table. Senate Minority Leader Mark Schauer has said that the services tax proposal is likely dead. Local government groups have issued statements indicating that it is premature to say there will be no revenue increases this fiscal year. Meanwhile, the Senate has announced it will turn its attention to Senate Bills 94, 95 and 96 this week. These bills have been under rewrite and revisions are expected to be finalized this week.
House Tax Policy will hold a hearing on the proposed replacement tax for commercial rental property, HB 4375 and HB 4376, on Tuesday at 3 pm. These bills will impose a new tax on commercial rental property in place of the general property tax. The tax is similar to the general property tax, except that it is not subject to the adjustments for vacancies allowed under WPW Acquisition Co v City of Troy, 466 Mich 117 (2002).