LANSING – Following meetings with local business leaders who have expressed concern about an expansion of the service tax, State Representative Andy Coulouris (D-Saginaw) has taken a leading role at the Capitol in the effort to convince lawmakers that a better alternative must be found before the 6-percent service tax starts being applied to a wider range of services.
"The budget solution included an expansion of the sales tax on services because that was the only way to get bipartisan support for the budget package and avoid a massive state government shutdown," Coulouris said. "I understand, however, that businesses in the Saginaw area are concerned about how they will be affected by the service tax. I am very sensitive to these concerns – and that's why I worked quickly to initiate meetings with local business leaders, along with lawmakers from both parties, to examine our options in adjusting or repealing the service tax."
With the state facing an unprecedented budget crisis, House Democrats staved off a potentially devastating state government shutdown by passing a plan that included a mix of cuts, reforms and revenues. Cuts totaling nearly $435 million have been made to state departments across the board. The budget plan for the fiscal year that began on Oct. 1 protects funding for vital services and puts Michigan on the road to recovery. The service tax, which was originally set to go into effect Dec.1, would expand the list of services that fall under the 6-percent service tax. Those services would include a select number of discretionary services, such as taking a limousine, hiring a personal trainer and getting a tarot card reading.
"Turning our local and state economy around is not an easy task, but it is my top priority," Coulouris said. "I appreciate the input and insight I received from business leaders in the Saginaw area, and I began pushing for a reexamination of the service tax as a result of the concerns of our local business community. I am optimistic that through my work in bipartisan negotiations that are taking place at the Capitol, the Legislature will agree to an alternative way to move our economy forward while protecting funding for vital services such as education, police and fire protection, and road maintenance."