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 Legislative Update and 2010 Election Preview CPA Licensing and Other Regulatory Changes Following the passage of CPA license mobility legislation in June 2008, work began on a comprehensive review and rewrite of Article 7 of the Michigan Occupational Code and the Administrative Rules promulgated thereunder, governing the CPA 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. A detailed examination of this legislation, still being drafted, will be available on the MACPA’s website and covered in Leaders’ Edge later this year. 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 MBT. These changes could be significant in 2009 and the MACPA remains committed to engage in the debate where appropriate. MACPA is currently working with members of this Task Force and subcommittee on Business Tax Restructuring 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. Beyond the MBT, the rumor-mill is turning and discussions have resurfaced regarding an expansion of the sales/use tax base to include services. The newly reorganized Detroit Renaissance is expected to issue a formal proposal calling for a reduction in the state’s sales/use tax rate, an expansion of the base to include services, and a 60 percent reduction in the MBT. MACPA is monitoring this situation and communicating with policy makers 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 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. Michigan’s term limit law will be having its way with the Legislature again in 2010, as 29 of 38 current State Senators are termed-out. In addition to those members termed-out of the House, speculation is that three or so House members could be running for each Senate seat. In all, of the 148 state legislators currently in office (38 Senators and 100 Representatives), as many as 100 new faces could be coming to Lansing and taking office in January of 2011. Weighing in the balance of this election is more than the majority control of the House and Senate (the House is currently under a significant Democratic majority of 67 – 43; the Senate under Republican majority of 21 – 16 with one seat vacant). 2010 is a census year, so the Legislature elected in November will be charged with “redistricting.” That is the redrawing of district lines adjusted for population purposes. IF one political party finds itself in control of both legislative chambers during this process, it often can secure itself similar control for years to come. The drastic impact of this election doesn’t stop there – all of the state’s constitutional offices (Governor, Lt. Governor, Secretary of State and Attorney General) are also up for election. To ensure future success in representing the CPA profession in Michigan government, advancing the MACPA’s agenda and protecting the integrity of the designation, we must be engaged in the upcoming election and work every day to establish and cultivate relationships with office-holders and those running for office. MACPA’s State Keyperson Program, our grassroots advocacy initiative, as well as the MACPA Political Action Committee (PAC) play a vital role in this effort. For more information on how you can be involved, visit www.michcpa.org/Content/16960.aspx. |
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| PO Box 5068 Troy, MI 48007-5068 Phone: 248.267.3700 Fax: 248.267.3737 E-mail: macpa@michcpa.org | |
