February 17, 2010 9:10 AM
Michigan's Governor, Jennifer Granholm, proposed yesterday that Michigan's sales tax be extended to cover consumer services, including self-storage. Granholm hopes to see the sales tax reduced from six percent to 5.5 percent. The change would raise another $550 million in revenue for the state of Michigan. Under Granholm's plan, the money would be used to help pay for public education, making it possible for Michigan schools to maintain their current level of spending. Michigan's Senate Fiscal Agency, which is a nonpartisan organization, previously announced that Michigan's school aid budget will have a $423 million deficit if more money is not raised. Michigan's general fund, likewise, will have a $1.2 billion deficit. Over the last two years, Michigan's general fund has dropped by $2 billion.
This is not the first time Michigan has considered extending its sales tax. A similar attempt was made two years ago, but was defeated as a result of lobbying and advocacy by the national Self Storage Association and the Self Storage Association of Michigan (SSAM). [More]