The House Tax Policy will be taking up a bill - HB 5059 - that will allow local governments to create a tax on liquor sold by the glass in bars and restaurants.  The municipality would have to put this question on the ballot to the voters of that municipality.  If passed, a per-drink tax could be assessed and the dollars would come to the municipality for important services.  The bill will be discussed, and folks from Royal Oak are expected to testify in support.  I will also be testifying in support, as this is local control and should be a decision of the local elected officials and voters.

It is also expected that this will lead in to a larger discussion of local option taxes.  The League will monitor the discussion and take part as appropriate. We have been in several discussions about local option transportation taxes and local option entertainment taxes.  We are flexible about options for locals, and the discussion should be very interesting.  Stay tuned to Inside208, and updates will be posted after the committee hearing.

You can also watch the committee hearing online if you are interested by going to http://www.house.mi.gov/htv.asp at 9 am on Wednesday.

Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email.

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