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Facts - Archives -
Month of June 2009Current
Week
June 26, 2009
State Senate Passes Budget with No Increase in Sales Tax
Sales Tax Holiday Still in Play
House Vote Expected Today with Governors Veto not Far Behind
More Budget Details
National Associations Make News
Retail News and Notes
Yesterday the Connecticut State Senate voted 19 16 in
favor of a state budget just 6 days before the end of the
States fiscal year.
The budget that was adopted included a steep increase in the
States income tax along with borrowing and a corporate
surcharge of 25% for the next three years.
But, the budget did NOT include any increase in the states
sales tax and also kept in place the sales tax holiday.
The House is expected to take up the budget today and is
expected to pass it overwhelming.
However, the Governor is expected to veto this budget which
will set up another showdown between the Democratic Majority
and the Governor on how to close the budget gap which is close
to 8.5 billion dollars.
More Budget Details
While we are extremely pleased that the Democratic budget
does not include an increase in the States sales tax and
keeps the sales tax holiday it is not to suggest that the
budget they adopted wont have an impact on consumers.
The bill the D adopted includes $2.5 Billion in new taxes,
mostly coming in the form of a new income tax schedule. In
addition the budget does hit business with a corporate
surcharge of 25%.
Here are some highlights of the budget the Senate adopted
and the House is expected to pass today.
Securitization Plan The budget allows the State to borrow
up to $335 million against future revenue streams.
Rate increase on personal income tax. This is probably the
largest and most controversial part of the Democrats budget.
The bill increases income taxes for those with taxable income
over $500,000 for joint filers, $265,000 for single filers,
$400,000 for heads of households, and $265,000 for married
people filling separately.
Corporation Tax The budget imposes a 25% corporation tax
surcharge for income years 2009, 2010, and 2011. Companies
must calculate their surcharges based on their tax liability
excluding any credits. The surcharge applies to all companies
that pay the tax, except those owing only the $250 minimum
tax.
The budget also makes a number of changes to the Film and
Digital Animation Production and Infrastructure Investment Tax
Credits.
Cigarette Tax the Budget Bill increases the cigarette tax
by 75 cents, from $2 to $2.75 per pact of 20 starting July 1,
2009. The bill also imposes a 75 cent floor tax on each pack
of cigarettes that dealers and distributors have in their
inventories at the close of business or 11:59 pm on June 30,
2009.
Other tobacco products tax The budget also increases the
tobacco products tax from 20% to 27.5% of the wholesale price
and the tax on snuff tobacco from 40 cents to 55 cents per
ounce. The bill also imposes the same floor tax on OTP as with
cigarette tax.
Estate Tax Surcharge The bill imposes a 30% estate tax
surcharge on the taxable estates of those who die in 2009,
2010 or 2011. The estate tax applies to taxable gifts and
estates over $2 million.
Plan to Sell State Assets The bill requires the state
treasurer and the OPM secretary jointly establish a plan to
sell state assets (anybody want to buy the LOB?) to raise net
revenue of up to $10 million for FY 11 and $102.5 million for
FY12.
As we mentioned, this budget is expected to be swiftly
vetoed by the Governor and then the fun will begin.
National Associations Make News
Over the last week or so two National Associations that CRMA
is involved in are in the news and will have an impact on us.
First, late last week we received word that the National
Jewelers Association would be ending its longstanding
partnership with State Jewelers Associations.
There will no longer be dual membership between the National
JA and the State Associations.
This will have obvious impact on states and as such, the
Connecticut Jewelers Board of Directors will be holding a
special meeting on Tuesday of next week to discuss what
direction it will be moving in.
Also this week, two of the Washingtons largest retail trade
associations cut off discussion of a planned merger. (See
Retail New and Notes Below)
The National Retail Federation and the Retail Industry
Leaders Association decided this week that they would not be
moving forward with its planned merger which was suppose to go
into effect this summer.
We will keep you posted if there are any developments in
both of these instances.
Retail News and Notes
NRF, RILA decide not to merge
The
National Retail Federation and the Retail Industry Leaders
Association have decided not to merge. NRF has about 2,500
members. "NRF and RILA will devote all resources to continuing
the work they are each doing to address the serious issues
that America's consumers and retailers are facing in today's
economic environment," the groups said in a statement.
The Washington Post (6/25)       
Dress Barn acquiring Tween Brands
Dress Barn is purchasing Tween Brands, Dress Barn announced.
The $157 million deal enables the company to expand into the
younger market with Tween's Justice brand.
Reuters (6/25) ,
The Wall Street Journal (6/25)
Target opens business-furniture store in Arizona
Target has added business-furniture stores in Arizona, opening
its first in the state in a former Walsh Bros. store. The
concept targets small and midsize businesses. "It's a place
where small-business owners can come in, kick the tires and
try things out," a Target executive said.
The Arizona Republic (Phoenix) (6/24)
June 19, 2009
Legislature in Special Session to Tackle Budget
Sales Tax Increase on the Table While Sales Tax Holiday on
Chopping Block
New Member Service Offering in Place
CJA Update
Retail News and Notes
As we go to print today, the Connecticut General Assembly
will be back in Special Session to take up some budget related
issues, but maybe not the whole budget.
Connecticut received some federal funding for summer youth
programs but because they did not pass a budget they did not
take the necessary steps to release those funds to local WIBs.
So they are going in today to do that but there are strong
rumors that they will attempt to pass a budget that they could
not do during the regular session.
Sales Tax Increase on the Table While
Sales Tax Holiday on Chopping Block
We spent the early part of this week at the Capitol trying
to sniff out what we could find about rumors we heard that the
budget being considered would both increase the state sales
tax and eliminate the sales tax holiday.
What we found out was that yes there is strong support in
the Sen. Ds for an increase in the sales tax and elimination
of the sales tax holiday, but in the House Ds just the
opposite was true.
We heard that the House Ds would rather have an across the
board increase in the personal income tax rather than raise
the sales tax. But, they too have elimination of the sales tax
holiday on their mind.
As we go to print today, it appears that the Democratic
Majority may not be ready to adopt a budget but they will
caucus it to see if they can find consensus among themselves.
Of course, the Governor has repeatedly said that she will
veto any budget the Democrats pass if it includes taxes.
Our guess is that Ds will not come to an agreement today
and that by the middle to the end of next week they will pass
a budget so that they can claim they tried before the fiscal
year closes.
We will keep pushing hard to keep the sales tax free week
and to hold the line on any increases in the sales tax.
New Member Service Offering in Place
As we mentioned last week, we are happy to kick off a new
member services offering that can help members save money in a
critical area.
CRMA has teamed up with Complete Payroll Solutions and Smith
Insurance of Groton, to offer members savings on payroll
services and workers compensation insurance.
This program will allow members to pay as you go on your
workers compensation insurance if you use our endorsed payroll
provider Complete Payroll Solutions.
If you are interested in setting up an appointment with
either CPS or Smith, please call our office today at
860-527-1044.
CJA Update
The CJA reception to welcome the new management team of the
Association will be held on June 30th at Michaels Jewelers on
Federal Road in Danbury.
If you would like to attend this event, please feel free to
contact our office today at 860-527-1044.
Also, if you are planning on attending, please bring a
colleague; this is a great way for you to meet the leadership
of the CJA in an informal setting.
Retail News and Notes
Kmart, Burger King participate in "Transformers" marketing
effort
Kmart is working closely with Burger King, Mars and Hasbro on
a promotional program tied to the June 24 release of Paramount
Pictures' "Transformers: Revenge of the Fallen." Under the
program, Burger King Kids meals will include Kmart coupons
for "Transformers" toys and footwear, and the quick service
chain will promote the discounter in a print and online
newsletter. Hasbro will deploy in-store "boutiques" for
"Transformers" toys, and Mars will supply candy and decorate
store windows for events at two Kmart stores in New York.
Advertising Age (6/17)     
Syms wants to return Filene's Basement to flagship store
Syms Corp. plans on putting Filene's Basement back in its
flagship location in downtown Boston. It might take at least
two years to open the store in a redeveloped Downtown
Crossing.
The Boston Globe (6/17)
Grocers continue to lower prices
Grocers across the country are cutting prices in order to
build relationships with customers, retail experts say. Stater
Bros., Kroger and Albertsons, for example, have all adjusted
prices in order to lure shoppers.
The Press-Enterprise (Riverside, Calif.) (free
registration) (6/17)
June 12, 2009
Legislature Expected in Session Next Week for Possible Budget
Vote
New Member Service Offering to Begin Next Week
CJA Update
Calling all Golfers!
Retail News and Notes
We have heard thru our sources that the State Senate is
expected to run a budget next week sometime.
As you know, the General Assembly adjourned its regular
session on Wednesday of last week without passing a budget and
now has until June 30th before the States fiscal year is
over.
Our sources tell us that the Senate President Don Williams
has cobbled together enough votes in his caucus to adopt a
budget but does not have enough to overcome a potential veto
by Governor Rell.
Our concern is nobody really knows what is in this package
and that has us very nervous.
So, we will be up there all week poking around and will
report back to you when we hear something concrete.
New Member Service Offering to Begin
Next Week
CRMA is pleased to announce today that we are teaming up
with two new partners in a unique offering to help members
save money in two important aspects of their business.
Beginning now, members of CRMA can save considerable money
on their payroll service with a new member service offering we
have developed with Complete Payroll Service.
CPS offers a tremendous alternative to members who are
looking for ways to reduce cost while maintaining the highest
of quality services
In addition to payroll, CPS has the ability to allow members
the chance to purchase their worker compensation insurance
thru them.
The workers comp piece of the new program will be sold by
Smith Insurance, and allows members the ability to pay as you
go with your workers compensation coverage.
This new feature, which is only available to CRMA members,
will allow members to better manage cash flow, which is
critical in this current economic environment.
So, this new member service will allow CRMA members to
address two key parts of their business while allowing them to
also save money and control cash flow, all while working with
top notch providers.
If you are interested in learning more about this great new
program call our office today at 860-527-1044 and we will put
you in touch with the right folks.
CJA Update
Invitations are in the mail for our upcoming wine and cheese
reception which will be held on June 30th at the Michaels
Jewelry Store on Federal Road in Danbury CT.
If you have not yet sent your RSVP, pleases do so today.
This reception is a great way for CJA members to meet the new
executive team of the CJA and to network with colleagues in
the industry.
And, while you are there you can taste some nice wine that
Stew Leonards Wines will be offering.
Stew is one of CTs great retailers and we are pleased that
he has offered to have some of his wines for our enjoyment
that night.
Please RSVP today and if you have any questions, please call
Cathy in our office at 860 -527-1044.
Calling all Golfers!
We are sure by now you have received a number of golf
invitations but we only care about one OURS!
The CRMA Golf Outing will be held on Oct 5th at the
prestigious Hartford
Golf Club , registration begins at 11:00 am and our day
ends with a reception and raffle beginning at 5:00 pm.
We are hopeful that you will participate in some way this
year with our Golf Outing. The Hartford Golf Club is one of
the best golf courses in the region and our event offers you
the chance to entertain important clients, colleagues or to
reward a valuable employee.
Our event offers not only great golf, but lunch and dinner
and a great raffle not to mention a good time.
Please send in your golf registration today and reserve you
spot. We really want to get as many golfers out on the course
this year and need your help!
For more information about the event, please contact Cathy
in our office at
cathy@crmaonline.com or by calling the office at
860-527-1044.
Retail News and Notes
Neiman Marcus plans more midpriced merchandise
Neiman Marcus is repositioning itself to offer more midpriced
goods. Although the strategy won't kick in immediately, the
company plans promotions and other events in the meantime.
The Wall Street Journal (6/11)  
Destination Maternity restores deal with Sears
Destination Maternity is coming back to Sears and Kmart stores
now that the companies have restored their partnership. The
maternity retailer will open 500 stores inside Sears and 100
inside Kmart stores.
American City Business Journals/Philadelphia (6/11)
Without rebate checks, May retail sales fall off last year's
pace, according to NRF
Without stimulus checks from Uncle Sam, consumers had less
money in their pockets to spend last month. According to NRF,
retail industry sales for May increased 0.2% seasonally
adjusted from April but dropped 4.7% unadjusted over last
year. "A slight sales increase from April provides hope that
the economic turnaround may not be that far off," NRF Chief
Economist Rosalind Wells said.
Read the news release.
Special Edition
Friday Facts, June 4, 2009
House Adjourns for the Regular Session
No Budget Means Special Session
CRMA Successful in Defeating Return Bill and other
Anti-Business Bills Die
Special Legislative Committee Call next Wednesday
On midnight Wednesday the General Assembly adjourned for the
regular session.
No Budget Means Special Session
In addition to not taking action on a number of key issues,
the General Assembly also failed to adopt a two year budget;
instead calling a Special Session to deal with that.
CRMA Successful in Defeating Return
Bills and other Anti-Business Bills Die
More importantly for CRMA members, we were successful in
defeating a number of key issues that would have negatively
impacted retailers.
One size fits all return bill dies on House Calendar.
We are very happy to report today that we were successful in
defeating HB 6516, AA Establishing Minimum Refund and
Exchange Policies
This bill would have imposed a one size fits all return
policy for all retailers and we are pleased that a number of
members responded to our request to contact their legislators
and as a result the Bill ran into lots of opposition.
While we are happy the bill died this year, we are certain
that its sponsor Rep. Jim Shapiro will introduce it again next
year.
We will continue to oppose this type of bill, but are
hopeful that we can meet with Rep. Shapiro during the interim
and iron out our differences.
Plastic bags and paid sick leave left on calendar.
We are very pleased to also report today that we were
successful in defeating a bill that would have imposed a .05
cent fee on all items purchased using a plastic or paper bag.
The bill was introduced by Majority Leader Denise Merrill,
and we are very pleased that a large number of members in the
General Assembly agreed with us that this approach to
recycling of plastic and paper bags is the wrong one.
We are confident that this issue will also be reintroduced
next session (the possibility remains that this approach could
show up in a special session) and we would like very much to
work with Rep. Merrill in coming to an agreement on this issue
as well.
Also, today, we are extremely relieved to report that the
State Senate did not take any action on a paid sick leave bill
HB 6187 AA Mandating Employers Provide Paid Sick Leave to
Employees that was before them.
We also expect that this bill will be back next year and
would not be surprised if the proponents tried again, during
the upcoming special session, to get it passed.
Special Legislative Committee Call next
Wednesday
With the regular session now behind us, we will be holding a
special Legislative Committee conference call to review in
more detail what took place this year as well as preview what
might take place during the upcoming special session.
That call will take place on Wednesday June 10th at 11:00
EST.
We will send a special notice to all members prior to the
call including the number to call into.
The call is open to all members of CRMA and if you have any
questions, please call Cathy in our office at 860-526-1044.
We will have more details about the final days of the
General Assembly, in this weeks FF.
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