Government Relations Update
From Jamie Callahan

October 19, 2007

Introduction from Government Relations

            As this is my first submission to the weekly email, I wanted to take a moment to introduce myself.  I was born and raised in Traverse City, graduating from Traverse City Senior High.  I attended Northwestern Michigan College in Traverse City, then transferred to Marquette University in Milwaukee, graduating with a double major in Finance and Medieval History. 

I have worked for organizations ranging from Old Kent Bank to the U.S. Department of Defense, and most recently almost nine years working in Lansing and across northern Michigan for Senator Jason Allen.  When I am not working, I volunteer with the Boy Scouts of America and enjoy hiking, camping, canoeing, reading and restoring my house in town.         

I am very excited to be working with the chamber team and advocating on your behalf in Lansing and Washington, DC. 

Sales Tax on Services:  “Ax the Tax” Coalition Formed

            The ‘Ax the Tax’ Coalition has been formed to work towards the repeal of the recently enacted 6% sales tax on certain services.  Almost 40 companies and associations have joined the movement.  The coalition is working to get this new tax repealed before its effective date of December 1, 2007. 

In the event that legislation is not enacted, they are also preparing to launch a petition initiative in the coming weeks to repeal the tax.  The coalition will be launching a website soon on the initiative at www.axthetax.com. 

For a listing of the different services that will be subject to the new tax, the Department of Treasury has assembled a listing of what services and associated NAICS industry codes, at www.michigan.gov/treasury.

            If you, your company or association is interested in the coalition or following legislation introduced to repeal the tax, contact me at jamie@tcchamber.org.

Michigan House Minority Floor Leader Resigns; Replacement Election Held

House Minority Leader Chris Ward of Brighton resigned his leadership position last Monday, October 15th.  The resignation comes after a number of members of the republican caucus expressed displeasure with him for his vote in support of the income tax increase - after the number of votes needed for bill passage was already secured - while supposedly informing caucus members of his intent to oppose the bill prior to the vote.

Last Thursday, October 18, the House Republican Caucus elected Rep. Dave Hildenbrand of Lowell as the new Minority Floor Leader to replace Rep. Ward.

New Committee Appointments for Representative Walker

Representative Howard Walker of Traverse City has been appointed to serve on the House Appropriations Committee, replacing Representative Dave Agema, Republican of Grandville.  The reported reasoning for the removal of Agema by Speaker of the House Andy Dillon from the committee was his absence from session during the marathon budget negotiation sessions at the end of September. 

Rep. Walker’s subcommittee assignments include Community Health, Higher Education, and Transportation.  Agema will take the place of Rep. Walker on the Agriculture, Great Lakes and Environment, and Tourism Committees.