The state Legislature on Saturday repealed a law imposing a new six percent tax on variety of services that could have affected a number of businesses in Leelanau County.
The biggest single impact would have been felt at The Homestead, where six percent would have been added to lift tickets on the resort’s 16 downhill ski runs.
Just as the law was taking effect Friday night, legislators and Gov. Jeniffer Granholm apparently found a way to replace the service tax with a surcharge on the new Michigan Business Tax, which takes effect Jan. 1.
The six percent surcharge was in effect for only one day – Saturday, before new legislation was approved and signed by the governor.
“Our ski area isn’t even open yet,” said Jamie Jewell-VanDuzen, sales manager at The Homestead. “The surcharge on lift tickets would have made the biggest difference, but we did not do anything different on that one day.”
She said some reservations were booked during the brief time the measure was in place, but that no charges to reflect any additional fees were added to bookings made at the time.
The tax would have applied to services such as consulting, warehousing and skiing. It was adopted early in October as legislators struggled to fill a $1.75 billion state budget shortfall. Legislators subsequently agreed the tax should be repealed, however; and it was about 17 hours after it went into effect.
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