HomeMy WebLinkAboutResolutions - 2005.06.16 - 27866REPORT (MISC. 105090) June 16, 2005
BY: General Government Committee, William R. Patterson, Chairperson
IN RE: MR #05090 — BOARD OF COMMISSIONERS — OPPOSITION TO A STATE
SERVICES TAX
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The General Government Committee, having reviewed Miscellaneous Resolution
#05090 on June 6, 2005, reports with a recommendation that the 1 st WHEREAS be
amended, as follows:
WHEREAS the subject of raising revenue for the State of Michigan by instituting
a "Services Tax," or tax on services, has been attributed to the--CsQver.ps4,-offiGe,
otkpio government officials and media outlets as a way of relieving current
governmental revenue shortfalls; and
Chairperson, on behalf of the General Government Committee, I move
acceptance of the foregoing report.
GENERAL GOVERNMENT COMMITTEE
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General Government Committee Vote:
Motion carried on a roll call vote with Coulter voting no and Crawford absent.
Miscellaneous Resolution # 05090
BY: Commissioner Chuck Moss, District #20
RE: BOARD OF COMMISSIONERS - OPPOSITION TO A STATE SERVICES TAX
TO: Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the subject of raising revenue for the State of Michigan by instituting a "Service Tax,"
or tax on services, has been attributed to the Governor's office, other government officials and
media outlets as a way of relieving current governmental revenue shortfalls; and
WHEREAS such a service tax would impose a cost on some, if not all, transactions entered into in
Michigan; and
WHEREAS sixty-four percent of income in Oakland County derives from the service sector, as
opposed to 50% in the state of Michigan as a whole, and
WHEREAS the burden of any proposed service tax would fall disproportionately on the businesses
of Oakland County; and
WHEREAS any proposed tax on services would worsen Oakland County's status as a significant
donor county whose net negative tax outflow is already at $1.1 Billion; and
WHEREAS such a service tax spreads through each transaction, raising costs and providing a
corresponding disincentive for each transaction, and
WHEREAS the requirement of tax reporting will be itself a significant burden on commerce in
Oakland County; and
WHEREAS the enforcement of such a tax will be a significant challenge, requiring greater
enforcement and investigatory activity, itself a cost to government; and
WHEREAS such taxes inevitably lead to widespread evasion and lawbreaking as citizens move
transactions "off the books" and into black markets, thereby criminalizing formerly honest business
activity; and
WHEREAS Michigan is already ranked as one of the least business-friendly states in the America,
while suffering one of the highest unemployment rates and a general failure to share in the general
American economic recovery; and
WHEREAS such a tax can only retard Michigan and Oakland County's economic vitality and much-
needed job growth; and
WHEREAS such taxes have been tried in other jurisdictions, notably in Florida and Ontario,
Canada. In Ontario the GST has had an enormous negative economic impact, and in Florida the
tax was rescinded soon after it was passed; and
WHEREAS such a proposed service tax would have a serious negative impact on the State of
Michigan in general and Oakland in particular, costing Oakland County businesses and families the
benefits of a robust economy.
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NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does
state its opposition to a proposed Service Tax, and urges the Governor and Michigan Legislature
not to advance or enact such a tax.
BE IT FURTHER RESOLVED THAT copies of this adopted resolution be forwarded to the
Governor of the State of Michigan, the Oakland County delegation to the state legislature, the
Michigan Association of Counties, and Oakland County's legislative lobbyists.
Chairperson, I move the adoption of the foregoing Resolution.
Commissioner Chuck Moss
District #20
Resolution #05090 April 28, 2005
The Chairperson referred the resolution to the General Government Committee. There were no
objections.
I HEREBY PPP E TH ! ',et „14.00.
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Resolution #05090 June 16, 2005
Moved by Patterson supported by Molnar the resolution be adopted.
Moved by Patterson supported by Molnar the General Government Committee Report be accepted.
A sufficient majority having voted therefore the report was accepted.
Moved by Patterson supported by Molnar the resolution be amended to coincide with the
recommendation in the General Government Committee Report.
A sufficient majority having voted therefore, the amendment carried.
Vote on resolution, as amended:
AYES: Crawford, Douglas, Gershenson, Gregory, Hatchett, Jamian, KowaII, Long, Melton,
Middleton, Molnar, Moss, Nash, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Wilson,
Woodward, Zack, Bullard, Coleman. (24)
NAYS: Coulter. (1)
A sufficient majority having voted therefore, the resolution, as amended, was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on June 16, 2005 with
the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 16th day of June, 2005.
Ru h * J.D ni144n, County Clerk