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• Introduced by Sen. Liz Brater (D) on March 1, 2007, to impose a 2 percent tax on services, except for health care and education. The new tax would take approximately $1.5 billion annually, one third of which would go into the school aid fund. Business-to-business services would also be taxed, meaning approximately two-thirds of the tax would fall on businesses. This tax was proposed by Gov. Jennifer Granholm as part of her annual budget recommendation.
  • Referred to the Senate Finance Committee on March 1, 2007, and discharged from committee to the Senate floor on March 15, 2007. The discharge means the bill could be put to a full Senate vote at any time. Reportedly, Senate Republicans might want to force a vote on Gov. Granholm's tax increase proposals, in the belief that not all members of the Governor's party support them.
  • Amendment offered by Sen. Liz Brater (D) on March 22, 2007, to insert a statement in the bill, as follows: "Revenue collected under this act shall be used to provide essential services including public safety, education, healthcare, protection of our natural resources, and to invest in the future of Michigan". The amendment passed by voice vote in the Senate on March 22, 2007.
• Failed 16 to 22 in the Senate on March 22, 2007.
  Who Voted "Yes" and Who Voted "No"