Just before 5pm, Saturday December 1, 2007, the Michigan House of Representatives struck the final blow to the 6% service tax.
Negotiations between the legislature and the Governor stretched on into the early morning hours of December 1st on House Bill 5408, the repeal of the job-killing service tax and the replacement of the revenue through a surcharge to the new Michigan Business Tax (MBT).
The Michigan Association of REALTORS® again kept vigil through the night in an effort to ensure any outcome spread the replacement revenue more fairly over a wide range of businesses. The first incarnation of the surcharge heavily favored manufacturers over Michigan's real estate brokerages and other small businesses. Although there was progress made during the late night negotiations toward a more equitable distribution, Bill Martin, C.E.O. of MAR summed up the final bill as "A bad tax that replaces another bad tax."
The MAR will continue to work with leadership in both chambers of the legislature on clean-up and clarification legislation to ensure that the MBT does not unduly burden real estate brokerages in this already troubled market.
Stay tuned to www.MiRealtors.com in the coming weeks for more details.
