LANSING, Mich. — A statewide coalition of business organizations working to repeal Michigan’s new sales tax on services has launched a petition drive to repeal a ballot issue for the next general election in 2008.

Michigan Farm Bureau (MFB), the state’s largest farm organization, is part of the Coalition to Ax the Tax group. During a press conference last week, the group announced plans to gather more than 304,000 signatures needed to put a statutory initiative seeking repeal of the six percent tax on the ballot in November 2008.

At the heart of the service tax package was raising the state income tax from 3.9 to 4.35 percent, extending the state’s existing six percent sales tax to include 23 additional services and reforming teacher health and retirement benefits. Agriculture would take a direct hit under the sales tax extension because the six percent levy would include warehousing and grain storage services, technical consulting services and landscape services.

MFB and several other agricultural organizations support the repeal because the legislature, in its rushed and non-public selection of specific services to tax, chose some essential business services which directly impact agriculture and could cost jobs and lost investment in the state’s $60 billion agriculture industry.

Much of the industry’s concern revolves around the legislature’s decision to tax storage and business consulting services, both of which play big roles in getting food to people and protecting the environment. Perishable agricultural commodities, for instance, require specialized storage as they move through the food chain. In addition, hired consultants help farmers reduce their pesticide use, for example, and comply with environmental regulations.

“Many agricultural products ranging from apples to onions are consumed year-round and require year-round storage. The service tax, in all likelihood, could tax a commodity multiple times as it makes its way through the food chain – first as raw product, then partially processed product and finally finished product,” said Tonia Ritter, manager of the MFB State Governmental Affairs department. “We believe there are unintended consequences to taxing services such as these. We don’t think the legislature intended to put Michigan’s agriculture industry at a severe competitive disadvantage and jeopardize employment and investment in the one industry that is actually growing in this state.

“That’s why we’re urging our elected officials to support legislation that has been introduced to repeal the tax and remaininvolved in the Coalition’s efforts,” Ritter said.

At a Nov. 1 rally in Lansing, Coalition members said they’d prefer that repeal be enacted legislatively, but pledged to repeal the “unpopular” and “ill-conceived” sales tax one way or another. “Let the message be clear. We’re going to do it, or they’re going to do it,” said Coalition leader and Oakland County executive Brooks Patterson, referring to voting taxpayers or legislators.

The Coalition to Ax the Tax also announced the launch of its new website – www.axthetax.com – where Michigan residents can sign or request a petition to circulate, as well as e-mail their legislator and learn more about the service tax and repeal efforts.