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DETROIT BUSINESS MAIN 10-09-06 a 9 CDB.Qxd DETROIT BUSINESS MAIN 10-09-06 A 9 CDB 10/6/2006 11:37 AM Page 1 October 9, 2006 CRAIN’S DETROIT BUSINESS Page 9 Mail order, Internet tax effort brings in $7M LANSING — A multi- and tax-remittance dates, crease throughout the year, month 2 percent of the uncollected remote but still have “work to do.” state effort to collect more will encourage retailers to by month, in the collections,” Vet- sales taxes estimated for that year. That’s below the top four gover- sales taxes from Internet voluntarily collect taxes tel said. He said that if the pace nors whom Inc. judged “a true and mail-order companies on remote sales. continues, the state in current fis- Granholm in middle of Inc. friend whose policies will benefit has netted Michigan more So far, more than 1,000 cal 2007 could easily double its col- businesses over the short and long than $7 million in the first retailers have registered lections from the $7.14 million it magazine’s ratings term,” but above the eight “two- year. in the multistate system, received in fiscal 2006. star” governors who have had some While that’s well shy of which currently encom- Inc. magazine has rated Gov. “fine achievements … mitigated by Remote-sales tax losses are esti- the $26 million revenue passes 20 states. Jennifer Granholm in the middle mistakes, failures or oversights.” mated at $317 million this year, stream state officials ini- Dale Vettel, director of among the nation’s 26 governors The four top governors were tially hoped the effort the bureau of tax and eco- and $349 million in fiscal 2008. up for re-election, based on how Janet Napolitano, D-Arizona; Kath- CAPITOL BRIEFINGS would produce, they say nomic policy for the Michi- By law, Michigan residents must their policies have encouraged leen Sebelius, D-Kansas; Bill Richard- elements of the voluntary Amy Lane gan Department of Treasury, report and pay the 6 percent tax due business ownership and supported son, D-New Mexico; and Jim Dou- program’s startup took longer said he remains optimistic Michi- on remote purchases. But it’s not a their states’ business community. glas, R-Vermont. than expected and the “stream- gan will eventually capture 10 per- widespread practice. In fiscal 2005, The business magazine, in its At the bottom of Inc.’s list is lined sales tax project,” as its cent or more of the taxes it loses in residents reported about $4.5 mil- Oct. 3 issue, ranks Granholm Mark Sanford, R-S.C. known, is taking hold. mail-order and Internet sales. lion in such taxes on their Michi- among 13 “three-star” governors Amy Lane: (517) 371-5355, alane@ That’s encouraging to Michigan “What I have seen is a steady in- gan income-tax returns — less than who are “creative and diligent” crain.com retailers. For decades, they have been working toward greater tax collection from out-of-state firms. “The most important thing is, it’s a start,” said Tom Scott, vice ONE KENNEDY SQUARE | DETROIT president of public affairs and communications for the Michigan Retailers Association. “Our biggest concern was al- ways the level playing field. If it’s mandatory (sales tax) collection in Our Success in Detroit a store in Michigan, it should also be mandatory collection on the In- ternet or from a catalog.” But under current law, it’s not. is Developing Nicely. Mail-order and Internet retailers must collect and remit sales tax only in states where they have a physical presence. Scott said the tax inequity gives out-of-state firms a 6 percent price advantage over Michigan retailers because they don’t have to collect Michi- gan’s 6 percent sales tax. “That may not be a big deal on a small item, but when you’re talking about computers or furniture, that’s a considerable amount,” he said. The retailers’ ultimate goal is for Congress to approve legislation that would mandate tax collection. The idea behind the streamlined sales tax project is that a simpli- fied, uniform tax-collection sys- tem, with electronic registration for retailers, standardized rules LETTERS CONTINUED ■ From Page 8 a month for me), increase in med- ical and dental premiums, shorter layovers, no crew meals when we could have a day scheduled for 13 hours and five legs and only 50 It takes leadership, integrity, and vision to create a successful future. minutes between flights. Where in this country does an employer not allow a lunch break At REDICO, we’re proud of the national presence we’ve built or intermediate breaks during the day? Sick pay is at only 75 percent when we pay 100 percent. These upon our long-standing foundation here in Metro Detroit. are only a few work rules that have changed. Sorry to inconve- nience the passenger for wanting fairness instead of slave labor. Oh, I know you say I could quit and get a different job if I am so un- happy, but who in this economy (especially Michigan) would hire a Building the Best in Real Estate® 53-year-old woman? I have worked 17 years for Northwest Airlines, and I have continued to work for the safety and well-being of all our 248 827 1700 passengers, but this is getting down to a safety- and health-relat- ed issues for all of us. Deborah Otto Flight attendant Northwest Airlines Inc. Holly DETROIT BUSINESS MAIN 10-09-06 A 10 CDB 10/6/2006 11:54 AM Page 1 Page 10 CRAIN’S DETROIT BUSINESS October 9, 2006 Gilbert hopes Fatheads are investment that sticks BY ANDREW DIETDERICH Other li- “We’re not talking about the National Football League and the said Andy Appleby, chairman and CRAIN’S DETROIT BUSINESS censing deals posters here,” Gilbert NBA. The helmets are available CEO of Rochester-based General are in the works, said. “These things look for NFL and some National Colle- Sports and Entertainment L.L.C. “I’d Dan Gilbert’s latest venture has and Gilbert said he ex- like they’re coming out giate Athletic Association football put my money on Dan for this nothing to do with online mort- pects revenue to be $25 of the wall.” teams. Some NASCAR vehicles are one.” gage lending and just a little to do million between Sept. 1 That was the appeal, available as well, at 3 feet high and Fatheads have been advertised with the Cleveland Cavaliers, the Na- and Aug. 31, 2007, using he said, and why he 7½ feet wide. on the ESPN networks, the NFL Net- tional Basketball Association team the start of the NFL sea- thought it was a good in- Gilbert said Fathead officials work, DirectTV and Dish Network, and he owns. son as a benchmark. vestment when he first are negotiating with Major League the Comedy Central and Spike TV That’s because his newest com- The company did not saw them. Baseball and the National Hockey channels. pany, Livonia-based Fathead L.L.C., want to release rev- Fatheads are life-size League to begin offering players “A lot of the appeal has to do sells life-sized vinyl wall graphics enue to date. vinyl wall graphics of and logos from those leagues, with completing a decorating of Cavs star LeBron James, along The 6-foot-tall vinyl players 6 feet tall and 3 feet along with many others. scheme, like in a basement bar or with more than 150 other profes- Fatheads got wide. There are helmets “I’ve known and admired Dan an area like that,” said Mike Foley, sional sports stars, pro and college investor Dan available that are 4 feet for years, and I know that before DC Sports Twelve Oaks team logos, and NASCAR race cars Gilbert’s tall and 4 feet wide. Play- he invests any money he thorough- manager of at attention. at $99 a pop. ers are available from ly researches his investments,” Mall in Novi. “I think they’ll sell. I’ve seen a couple, and they’re not a bad product.” For now Fathead sticks to sports, Gilbert said, but could move into other areas such as mu- sic, movie stars and even family members. The company is an investment of Camelot Ventures L.L.C., the pri- vate investment group led by Gilbert and David Katzman. The Fathead brand launched in September 2005 with NFL players and helmets. NBA players and NASCAR race cars were soon added. A five-person startup originally called Fathead Inc., the company lacked the capital to realize the full potential of the product, Gilbert said. “Because of costs, you can’t just make one or two,” he said. Fathead L.L.C. has no affiliation with the old company, and Eliza- beth Jones, vice president of Quick- en Loans Inc., said that for that rea- son, the new company did not want to provide any contact infor- mation for the founders. Camelot took over all licensing agreements of the previous compa- ny, which dissolved in June. Terms were withheld. Since then, the company has hired 25 and plans to double em- ployment by the end of the year. Gilbert didn’t want to say how A LAW FIRM UNLIKE ANY OTHER much the products cost to make. They’re made at various printers, he said. Because the images have to be li- censed, either through the individ- ual player or the league, Gilbert said he doesn’t worry about com- petition developing a similar prod- uct because leagues and players won’t license for a similar or iden- tical use.
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