Saturday, December 01, 2007

Two months later, the budget is done. We think.

In the dead of the night, they repealed and replaced the service taxes.

Less than an hour before the much-maligned tax on services took effect, legislative leaders and Gov. Jennifer Granholm reached a tentative deal to repeal it and replace it with an expanded state business tax.

Higher surcharge than the Senate wanted, a sunset well in the future.

Under the deal, the services tax would be replaced by a surcharge on the new Michigan Business Tax of 21.95% -- a compromise between early versions. The largest surcharge any business would pay is $6 million and the surcharge would end in 2017.

The agreement also calls for using $100 million in a windfall from the first year of collecting the new business tax.

The AP reports the sunset comes with economic conditions. The House has to come back in and vote later this afternoon.

Two months.

And just think- they are out for the year on December 6th, unless they decide to stay and perhaps work on all the OTHER stuff that needs to be done...