Recent Press Regarding Proposal 1

Undoubtedly, most of the MITA membership has read a few negative pieces in the media regarding Proposal 1 and the campaign to support a yes vote. Over the next 95 days, (that’s right, we have less then 100 days until the most important election to the industry occurs), there will be a variety of negative and positive stories in the media regarding the potential outcome of the campaign. At MITA, we often have a saying: “Don’t get too excited about good news, and don’t get too worked up over bad news.” It’s important to maintain that perspective to ensure everyone is making appropriate decisions to advance our goals.

Over the course of last week there were three separate media stories that we wanted to respond to our members about. The first was a study done by the Anderson Economic Group out of East Lansing, which analyzed the portion of the proposal that eliminates the 10% reduction in vehicle registration fees for the first three years after purchase. Currently, registration fees can be deducted from an individual’s federal taxes, and the report argued that with the change they no longer would be and would cost Michigan taxpayers over $100 million. However, state treasury experts disagree with the report and believe that the deduction will remain in place. Only the federal treasury department can determine whether or not they would remain tax deductible, and they will not comment on pending or proposed legislation.

The second newsworthy item of the week was a recent poll that showed 46% of respondents supported the proposal and 41% opposed, while the remainder were undecided or refused to answer. The media has spun this as a negative, however, we see this as a positive start to the campaign. There is a lot of education that the public will receive during the remainder of the campaign, and we’re certain that with a real understanding of the proposal, the public will be supportive.

Finally, there have been reports regarding the various individuals and consulting firms who will be managing the campaign. The campaign originally was headed in one direction and ultimately went in a different one. Despite what the media has reported, there was never a contract in place, and it was premature and incorrect to suggest that anyone quit the campaign or was fired. There is a very strong and accomplished team being put together to manage the campaign, and within the next few weeks, campaign documents will be finalized that we will share with the entire membership.

If you have any questions over the course of the campaign, please don’t hesitate to contact Mike Nystrom, Executive Vice President, at mikenystrom@mi-ita.com or Lance Binoniemi, Vice President of Government Affairs, at lancebinoniemi@mi-ita.com