January 23, 2003

Legislative Activity

Date: January 23, 2003

To: AAF Members

From: Jeff Perlman, EVP-Government Affairs
Clark Rector, SVP-State Government Affairs

Re: Michigan Tax Proposal

As you may have heard, the head of the Michigan Education Association (MEA) has asked the legislature and Governor Jennifer Granholm (D) to tax advertising to help pay for education programs.

At this point, there appears to be little support for the idea within the legislature, and Governor Granholm has said that she is not in favor of any new taxes. I have been working with representatives of both the Michigan Advertising Industry Alliance (MAIA) and the Michigan Association of Broadcasters. The MAIA retains the respected Lansing lobbying firm of Karoub and Associates. Both groups have been in touch with key legislators about the MEA proposal, and both counsel the advertising industry to take a low profile approach to the issue.

>This is not the time for the industry to begin a high profile letter writing or lobbying campaign targeted at lawmakers. However, if you already have a relationship with a Michigan legislator, it would be appropriate and useful to place a call to him or her and explain the harm that a tax on advertising would cause.

We will continue to monitor this issue very closely and make the appropriate contacts with lawmakers. We will keep you updated should the situation change. Do not hesitate to contact me at (202) 898-0089 or crector@aaf.org if you have any comments or questions.