Mixed Feelings By Retailers On Proposed Sales Tax Hike

While approval would have its benefits, the state’s largest retailers organization has taken no position on the upcoming May vote on how to raise more funding for the repair of Michigan roads and bridges.

As the exact wording becomes finalized this week, Tom Scott, of the Michigan Retailers Association says their membership has decided not to take a stand on the statewide ballot proposal since there are mixed feelings among retailers about raising the state sales tax, although they would benefit greatly from improved roads to transport goods.

The proposal would raise the sales tax from six-to-seven-percent, eliminate the sales tax on fuel and target a portion of the use tax for the school aid fund. Another portion could be used for community colleges and career/technical education.   It would also, if approved, include an increase in the tax on gasoline and diesel fuel and vehicle registration fees, dedicating that revenue for roads and transportation programs.

Meantime the Small Business Association of Michigan, the Michigan Manufacturers Association and Business Leaders for Michigan all support Proposal One, while the National Federation of Independent Businesses oppose it. The Michigan State Chamber of Commerce is, as yet, undecided on the issue.