MAHB Capitol Update

October 1, 2007

From the mailing list:

At 4:30 a.m. this morning (Monday, October 1, 2007) a government shutdown was ended.  Your Government Relations team – which has lived at the Capitol Building since last Friday – is currently going through the details of the agreement; wanted to send you a brief update with more details to follow tomorrow.


The two items which are drawing most of the attention is the income tax and sales tax on services.  The House and Senate voted on a conference committee report to raise the income tax to 4.35 percent.  Raising the state’s income tax will generate an additional $765 million for the State.  The income tax bill is written so the rate will gradually drop back to 3.9 percent between 2011 and 2015.


The other item drawing attention is the 6 percent sales tax on services.  The extension begins on December 1, 2007.  While the list is extensive, it appears that home building and remodeling are not on the list.  Your Government Relations team is going over the list with a fine tooth comb and will have a more extensive update within the next few days.


Along with the tax increases were several reforms.  The House and Senate approved a controversial measure that would change the way some teacher and state worker health benefits are determined.  The passing of these reforms will affect an insurance affiliate of the Michigan Education Association, the state’s largest teachers’ union.


The “deal” allows Governor Granholm to sign the continuation budgets and this week the legislature will go to work in adopting the 2008 budget.  Governor Granholm threatened to veto any continuation budget without the passage of tax increase.  Stay tuned for a more detailed update to arrive in your in box by Wednesday. 


Also, don’t forget the Michigan Association of Home Builders’ Economic Summit is taking place on October 24, 2007 at the Capitol Building .  This is your chance to help the home building industry.  Information can be found by going to our web page at  The early bird registration rate ends October 5, 2007, so you will want to sign up today.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: