While the surcharge may affect real estate operators who work in the state, many business groups say it is still preferable to the service tax, which would largely have affected business-to-business transactions. For Michigan, the business surcharge will bring in more than $750 million a year in revenue. For the self-storage industry, it means a reprieve from a dreaded tax burden that would also affect consumers.
In the trenches against the service tax was the Self Storage Association of Michigan Association (SSAM), formed earlier this year, which hired a Lansing, Mich.-based lobbying firm to advocate its cause. SSAM President Dan Morris, Executive Director Tim DeWitt, and founding member Maurice Pogoda all actively participated in creating an informed defense of the industry and argument for the repeal. SSAM was assisted in its efforts by the national Self Storage Association, with which it is affiliated.