Magazine Publishers of America
Facing a $2.8 billion dollar shortfall in their 2010 budget, Michigan lawmakers have been considering various revenue measures to fill the deficit, including the elimination of the tax exemption for periodicals. While Michigan has previously considered eliminating the exemption for newspapers, this is the first time focus has shifted to magazines.
In early September, with only three weeks left before the start of the 2010 fiscal year, and no budget yet in place, House Appropriations Chair George Cushingberry introduced legislation that would have cut a number of tax exemptions, including the tax exemption for periodicals sold on both the newsstand and by subscription. Shortly thereafter, MPA and local counsel went to Lansing to lobby against the measure.
With the budget deadline looming, on October 1st (two hours into a government shut-down), the legislature passed a continuing budget resolution, which extended the date for a budget to be passed to October 31st. While it appears that our efforts to protect the exemption have so far been successful, MPA will continue to monitor the situation until the final deadline.
