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Old 24th November 2007, 12:02 AM   #5 (permalink)
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Default Re: Michigan Starts New Sales Tax On Tanning And Other Services

Opponents of new sales tax won't give up fight


Tax is set to take effect Dec. 1

By Kristen Abraham

LANSING (WJRT) - (11/23/07)--In one week, Michigan residents could start paying more for certain services. A 6 percent tax on things like skiing, storage units and tanning booths is set to kick in Dec. 1.

But opponents of the new tax aren't giving up their fight.

"The worst thing we can do is add tax upon tax in this state," said Veronica Horn.

The pressure is building on state lawmakers to repeal the service tax they passed two months ago. The new charge was part of an 11th-hour budget-balancing deal in late September.

Friday, the Saginaw County Chamber of Commerce joined forces with local Republicans for an Ax the Tax Party, part of a statewide petition drive.

"We want to collect over 300,000 signatures statewide," Horn said.

Meanwhile, house Democrats have a proposal on the table to increase the Michigan Business Tax by 33 percent. But a GOP lawmaker says that would put small businesses out of business.

"It would be an extraordinary amount of money for small businesses to pay," said Ken Horn.

The tax is supposed to go into effect Dec. 1, right in the middle of the holiday shopping season. Local businesses like Eclipse say they may take a big cut.

"I will have to raise my tanning packages," said Tina Gooch. "It's hard to add on taxes in tanning. My first thought was taking more money from the small businesses. I'm upset, but I can't do anything about it."

Lawmakers meet Monday in Lansing to come up with a solution. If an appeal isn't reached, the issue may go to a statewide vote next year.
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