The MACPA’s Legislative Team, comprised of the Legislative Advisory Group, Political Action Committee, President, Government Relations staff and external lobbyist, is extremely busy protecting the integrity of the CPA designation and advancing the agenda of the profession; however, so much of this activity goes unseen and unheard. To ensure knowledge among MACPA members statewide, a legislative update in Leaders’ Edge offers a glimpse into these efforts in each edition.

Following the passage of CPA license mobility legislation in June 2008, work began on a comprehensive review and rewrite of the Administrative Rules promulgated under the Occupational Code, governing the profession in Michigan. Some of these updates are necessary given the new mobility provisions, such as altering the rule regarding temporary practice permits; however, the MACPA is working closely with the State Board of Accountancy and staff from the State of Michigan Licensing Bureau to examine references to practice standards and other items. Click here to see the current Rules. Revisions should be completed by the end of the year.

MACPA is also hard at work on the tax front. The Association, mainly the experts on the MACPA State & Local Tax Task Force, continues to review all proposals, debates and conversations relative to changes to the Michigan Business Tax (MBT). These changes could be significant in 2009 and the MACPA remains committed to engage in the debate where appropriate. Members of this Task Force and a subcommittee on Business Tax Restructuring are working with us to target ambiguities and necessary technical corrections in the MBT and communicating with the appropriate individuals inside the State Legislature and at the Department of Treasury.

These efforts include the review and comment on draft Revenue Administrative Bulletins (RABs) issued by Treasury to provide more detail under the MBT. The Department recently issued Draft RAB 2009 – Unitary Business Group Control Test for review. Comments on the draft RAB are due by the close of business on Friday, July 31. In order to ensure time for the Task Force to compile and edit comments, please provide any input to legislation@michcpa.org by Friday, July 24. The Department has asked that all comments include specific statutory references, etc. as a basis for arguments and/or suggestions.

Legislative leadership in Lansing has indicated a desire to rework the entire state tax system, and is communicating with business groups and others. Under examination are real and personal property, sales and use and individual income taxes, as well as the MBT. The rumor-mill is turning and discussions have surfaced regarding again expanding the sales/use tax base to include services. MACPA is monitoring this situation and communicating with policymakers daily.

Finally, the MACPA is always tracking policy proposals that may impact CPAs, working diligently to protect the profession’s interests. Although no legislation has been introduced, efforts undoubtedly remain afoot here in Michigan to create a licensing or regulatory structure for paid tax preparers, a proposal that flies in the face of MACPA’s mission to protect both the public and the CPA profession. Initiatives have also surfaced in recent years to require audit partner and/or firm rotations for specific sectors (i.e. school districts, area agencies on aging, etc.) The MACPA is committed to defeating any such proposals.

On the national front, mobility continues to make tremendous progress. Forty-two states have enacted mobility legislation with two more having passed it only applicable to other mobility states. That’s 44 total licensing jurisdictions onboard. A mobility bill has passed the legislature in another state and is currently awaiting gubernatorial approval. Legislation is also pending in two other states. The total is likely to be as high as 49 by the end of 2009 – a far reach from the four states with mobility provisions prior to 2007, when the initiative began.

Stay tuned to Leaders’ Edge for further legislative updates, as well as an early yet comprehensive examination of the 2010 election and its potential impact.

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