LANSING, Mich. — Michigan Gov. Jennifer Granholm recently proposed a 2 percent tax on services as part of the state budget for the fiscal year starting October 1. Coin laundries would be subject to the tax.The 2 percent tax on 132 services ranging from laundering clothes to car washes, drycleaning and even bowling would generate nearly $1.5 billion in additional revenue. Lawmakers can choose to accept all, some or none of the governor’s budget recommendations for next year. The governor can also veto the lawmakers' recommendations.The Michigan Chamber of Commerce and the Michigan Association of Realtors launched a 30-second television ad highlighting many of the services that would be taxed under the plan.“Contrary to the governor’s claim that this is a kind of luxury tax, it will hit every family’s pocketbook and every business’s bottom line,” said Tricia Kinley, tax policy expert for the Chamber of Commerce.In Illinois, businesses are concerned about Gov. Rod Blagojevich’s proposed tax fairness plan which is designed to get businesses to pay their fair share of taxes. However, the governor says that under the tax fairness plan, businesses with less than $1 million in revenues would be exempt from the revised tax structure. He added that 75 percent of all businesses in Illinois would see no or little change in their taxes.
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].