Business & Economy

Many brick-and-mortar businesses welcome online sales tax

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BY COLLIN KRIZMANICH
Capital News Service
LANSING — Many businesses across northern Michigan will benefit from a new law that subjects online retailers such as Amazon and Overstock.com to the same 6 percent sales tax that “brick-and-mortar” businesses collect from consumers. The Main Street Fairness Act will affect any online retailer that has a physical presence in the state of Michigan, or has subsidiaries that have a physical presence in the state. The legislation specifically notes businesses that have warehouses and distribution centers in the state, in what is seen as an attempt to target large online retailers such as Amazon. When the law goes into effect on Oct. 15, it will make Michigan the 23rd state to enact legislation subjecting online retailers to what is more commonly known as the “Amazon tax.”

The Senate Fiscal Agency projects the law will bring in $50 million in new revenue for the state each year.

Business & Economy

Where rubber hits road, new taxes fix them

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By IAN K. KULLGREN
Capital News Service
LANSING — As lawmakers wrangle over how to fix the state’s crumbling road system, one group is increasingly volunteering to foot the bill: Local taxpayers. More than a third of counties now have local property tax increases in place to help fund road maintenance. In 2006, voters in 12 counties had approved local road maintenance levies. That number has now risen to 28 as of this year, when eight passed new increases in the August primary and November general elections. Although the taxes are expected to bring in millions of dollars in additional road funds each year, local leaders say it will barely make a dent, even if the House passes a bill in December to double the gasoline tax.

Transportation & Roads

How other states fund roads could fix Michigan potholes

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By DARCIE MORAN
Capital News Service
LANSING — Michigan and nearby states might share road funding concerns, but the Mitten might not have access to the same solutions. Michigan’s road funding is unique because of its comparatively low gas and diesel taxes, lower taxes for diesel than gas and an unusual funding formula that sends a disproportionate amount of money to rural areas, said Kenneth Boyer, a Michigan State University professor of economics. Indiana has dealt with cost issues by privatizing a toll road and increasing fuel tax revenue, said Indiana Department of Transportation media relations director Will Wingfield. That can’t work here, Boyer said. Michigan has no tolls, only bridges.

Campus News

MSU Withholds Student Government Funding

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After MSU requests ASMSU, the schools student government, to transfer their financial accounts on campus the organization votes to deny the request resulting in their funds being withheld. The university says the request is supported by past audits ASMSU see’s otherwise. Focal Point’s Cortni Moore tells us why.

Government

'Supermajority' proposal pumps up super debate

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By SILU GUO
Capital News Service
LANSING – It would be tougher for lawmakers to raise or alter the mix of state taxes if Michigan joins a minority of other states in requiring approved by a legislative “supermajority” to approve. A November ballot issue would require a two-thirds vote in the Legislature or a statewide vote to approve additional taxes. Oakland County Sheriff Mike Bouchard said the “supermajority” proposal will force a higher level of consensus among lawmakers before raising taxes. He is honorary chair of the Michigan Alliance for Prosperity, a coalition that supports Proposal 5. “They need to make decisions to raise taxes after they have done everything else possible first,” Bouchard said.