Michigan's Governor Granholm's Tax on Services Defeated!
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Last night the Michigan Senate Republicans, under the leadership of Majority Leader Mike Bishop (R- Rochester) voted down Governor Granholm’s 2% tax on services, sending a clear message that tax increases to balance the 2007 budget are off the table. The vote went down along party lines with all Republican Senators voting against the Governor’s tax proposal joined by one Democrat, Senator Glenn Anderson (D- Westland), a REALTOR® member. In speaking with reporters following the vote Sen. Bishop declared Governor Granholm’s 2% tax on services “killed for good.”
Following the vote to defeat the tax, the Senate worked into the night to pass the remaining budget cuts totaling almost $600 million. The remaining votes went down party lines as the budget was passed.
This legislative victory was made possible by those that contribute to RPAC and the members who responded to the MAR Call to Action. During the floor debates regarding Governor Granholm’s 2% tax on services, many Senators remarked about the volumes of emails and phone calls they received regarding the negative consequences of this tax on Michigan families and businesses. Our membership’s over 4,900 emails to their State Senators aided in forming their decision on this vote.
While this is a tremendous victory for the real estate community, there is still a long way to go. While he recognized the tax proposal would be defeated yesterday, Senator Michael Switalski (D-Roseville) stated that, “The issue of revenue will not go away. I’m confident we will return to revenue before this is over.”
MAR RPAC Trustee Chair Matt Davis said, “Taxes are punitive to the real estate industry. There is no better time than now to contribute to RPAC.” We must continue to remain vigilant in the fight against taxing real estate services.
Michigan Defeats Tax on Services
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