Ronan Patterson, PSC legislative liaison, provided the review and answered committee members' questions during the brief first meeting. The committee also plans to review the PSC Staff Report on deregulation, rate structures, social programs and an analysis of transition and stranded costs at future meetings. No date has been set for the next joint hearing. Governor proposes compromise on cigarette stamp issue Governor Engler's office released details of a compromise to implement a cigarette tax stamp program to combat smuggling. Under the new proposal, state cigarette wholesalers would be compensated for stamping cigarettes sold in Michigan, unless the state could negotiate a lower collection fee with the cigarette manufacturers or bonded warehouses for the same service.
Wholesalers currently receive a one percent collection fee.
Under the governor's plan, wholesalers and retailers who act as their own wholesalers stand to lose the current collection fee and any associated cash flow gained from administering the state cigarette tax. MRA official named to Treasury's tax advisory panel MRA Vice President of Governmental Affairs Peter Kuhnmuench was named to the Michigan Department of Treasury's Commissioner's Advisory Group. The group was formed to provide business representatives with a forum to meet on an ongoing basis with the treasurer and commissioner of revenue. The format is designed to promote an open exchange of information relating to current tax issues. The next meeting is scheduled for April 22 in Lansing.