The chair of the House Natural Resources Committee, State Representative Joel Sheltrown (D-West Branch) has called for the dedication of certain sales tax revenue in place of increases on hunting and fishing license fees and state campground fees.
Under a plan announced today, one-sixth of the sales tax collected from the sale of sporting goods would be dedicated to the Michigan Conservation and Recreation Legacy Fund. The fund, created by voters last year, supports Michigan's state parks; state forest campgrounds; hunting and fishing programs; and snowmobile, off-road vehicle and waterways programs.
"The Department of Natural Resources estimates that $3.3 billion is spent annually on sporting goods in Michigan, contributing $100 to $200 million dollars in sales tax revenue," Sheltrown explained. "The new proposal would contribute over $20 million in revenue to conservation programs in Michigan, eliminating projected shortfalls and allowing the state to invest for future recreation expenses."
Texas has used a portion of its sales tax revenues from sporting goods to provide over half of its conservation funding. The entire 6.25 percent Texas sales tax on sporting goods is dedicated to the state's outdoor programs, although current Texas law caps the amount of dedicated funding at $32 million out of the over $100 million collected. The Sheltrown legislation uses that state's definition of sporting goods to include "an item of tangible personal property designed and sold for use in a sport or sporting activity, excluding apparel and footwear except that which is suitable only for use in a sport or sporting activity, and excluding board games, electronic games and similar devices, aircraft and powered vehicles, and replacement parts and accessories for any excluded item."
"The Legislature has increased state park and state forest campground fees just last year and hunting and fishing fees have increased three times in the past 10 years, yet the shortfalls keep getting worse," Sheltrown said. "In the same 10 year period, the number of Michigan deer hunters has fallen by 22 percent and we continue to lose another 3.5 percent with each passing year. Continued fee increases provide a very short term solution but a long term disaster for conservation funding."
Sheltrown argues that the restoration of state General Fund support is the responsible alternative to fee increases. He points out that a decade ago, the DNR received 23 percent of its budget from the state's General Fund and today that amount is only 9 percent.
"This continued double taxation of Michigan's sportsmen runs counter to our efforts to increase participation in outdoor activities," Sheltrown added. "Dedication of a portion of sales tax revenue from sporting goods is a far more logical solution than more fee increases. In the wake of legislative action on the Michigan Business Tax, income tax and service tax, it is also more prudent."