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Legislature Passes MMA Effort to Prohibit Unfair Tax on Food Manufacturers

Legislation designed to prevent uncompetitive taxes on manufactured foods and beverages successfully passed both legislative chambers on Thursday, 10/12/17.

The MMA-supported House Bill 4999 (Representative Rob VerHeulen, R-Walker) would reduce the threat posed to the Michigan economy by local, targeted product taxes. The House passed the bill 101-7 while the Senate was equally supportive, passing it 30-5.

The legislation would prohibit local units of government from imposing an excise tax or administering any policy imposing a tax or fee, on the manufacture, distribution or sale of food, except as otherwise provided by federal or state law.

“Local laws add high costs and regulations atop existing state and federal laws, severely damaging the competitiveness of Michigan manufacturers,” says Mike Johnston, MMA vice president of government affairs. “A patchwork of local laws communicates that Michigan is not a business-friendly state. That message delivers a critical blow to our ability to attract new food producers. This legislation keeps the doors open for these businesses to call Michigan home.”

MMA’s testimony also pointed to additional challenges arising from localized laws, including:

  • Bringing harm to companies’ bottom line in Michigan if they are prohibited from selling the products in their own state
  • Stigmatizing Michigan-made products in the minds of other states that would otherwise provide a source of revenue to the Michigan economy

Governor Rick Snyder was presented with the bill on Monday, 10/16/17, and is expected to sign it soon.

This article was published in the 10/17/17 edition of MFG Voice.

Contact Mike Johnston

Mike JohnstonVice President of Government Affairs
Call 517-487-8554
E-mail johnston@mimfg.org

Legislation designed to prevent uncompetitive taxes on manufactured foods and beverages successfully passed both legislative chambers on Thursday, 10/12/17.

The MMA-supported House Bill 4999 (Representative Rob VerHeulen, R-Walker) would reduce the threat posed to the Michigan economy by local, targeted product taxes. The House passed the bill 101-7 while the Senate was equally supportive, passing it 30-5.

The legislation would prohibit local units of government from imposing an excise tax or administering any policy imposing a tax or fee, on the manufacture, distribution or sale of food, except as otherwise provided by federal or state law.

“Local laws add high costs and regulations atop existing state and federal laws, severely damaging the competitiveness of Michigan manufacturers,” says Mike Johnston, MMA vice president of government affairs. “A patchwork of local laws communicates that Michigan is not a business-friendly state. That message delivers a critical blow to our ability to attract new food producers. This legislation keeps the doors open for these businesses to call Michigan home.”

MMA’s testimony also pointed to additional challenges arising from localized laws, including:

  • Bringing harm to companies’ bottom line in Michigan if they are prohibited from selling the products in their own state
  • Stigmatizing Michigan-made products in the minds of other states that would otherwise provide a source of revenue to the Michigan economy

Governor Rick Snyder was presented with the bill on Monday, 10/16/17, and is expected to sign it soon.

This article was published in the 10/17/17 edition of MFG Voice.

Contact Mike Johnston

Mike JohnstonVice President of Government Affairs
Call 517-487-8554
E-mail johnston@mimfg.org