Gaylord/Otsego County Chamber of Commerce

Government Relations Update from Jamie Callahan

April 28, 2008

Your Input Needed as MBT Survey Approaches May 5^th Deadline

The opportunity for members to participate in the Michigan Business Tax survey is nearing the end.The Chamber will begin tabulation of the survey data after May 5^th.The Chamber and the Alliance launched the ‘Your MBT Experience’ information drive to learn how the new tax is impacting northwest Michigan businesses. Reports are coming in from across the region that businesses are seeing increases in their MBT liability, some as high as 500% over last year, forcing them to seriously consider laying off their employees and moving out of the state.

The survey is short and only takes a moment to fill out.Alliance chambers have made the survey available in different ways, from online surveys and inclusion in weekly updates, to direct email solicitation.In addition, the survey can be found through this link.

Your input is important, as your comments along with fellow chamber members will be used to showcase how this tax and surcharge are impacting the region’s job providers and reinforce the need for possible changes.Any information disclosed as proprietary or confidential will be kept confidential.

MBT Impact Subcommittee Formed in Senate

A subcommittee has been formed by the Senate Finance Committee to solicit input and analyze information submitted from businesses on the impact the Michigan Business Tax has had on Michigan job providers, and create suggestions for improvement.The subcommittee will be called the MBT Impact Assessment Subcommittee, chaired by Sen. Mark Jansen of Cutlerville.Other members of the subcommittee are Sen. Jud Gilbert of Algonac and Mike Prusi of Ishpeming.

The subcommittee is charged with completing their work and having recommendations to the Committee by June 1, 2008.No hearings have been set at this time.Watch for future updates in the Government Relations weekly e-news.

Talk About Kreiner Resurfaces

Talks have been confirmed between the chair of the Senate Judiciary Committee and insurance industry officials last week regarding possible changes to Michigan’s no-fault law, stemming from the Kreiner decision.Kreiner may not be a household word to most people, but in the field of no-fault insurance law and the legislature, it is a common part of the lexicon.The namesake stems from the Michigan Supreme Court 2004 decision in Kreiner v. Fischer that set a clear standard which a car accident victim could collect pain and suffering damages.

Legislation has been introduced in both chambers to reverse or address certain aspects of the ruling, a practice that has become a common practice since the ’04 ruling.MIRS News summarizes both sides of the argument as: ‘Michigan trial lawyers argue the Court created a nearly impossible standard to reach, while the insurance industry claims the decision simply cemented what already existed in state law, which makes car accidents "whole."’