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Committee moves local option sales tax study resolution to formal session after public comments
Summary
The committee voted to send a resolution authorizing the Legislative Policy Division to contract with the Citizens Research Council to study a local option sales tax ("smart tax"), a proposal public commenters and committee members said could diversify city revenues; legal limits under Michigan's constitution were noted and will be studied.
The Budget, Finance and Audit Standing Committee voted to move to formal session a resolution directing the Legislative Policy Division (LPD) to contract with the Citizens Research Council (CRC) to study a possible local option sales tax, often described in public comment as a "smart tax" or LOST (local option sales tax).
Public comment included two callers who urged the committee to support the study. Tony Reeves, identifying himself as a PhD candidate in economics at the University of Michigan and a member of the Equitable Development Task Force, said 38 states have used local option sales taxes and cited examples he said…
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