Michigan board delays vote on cigarette tax contract
October 30, 2013 | AP A Michigan board has delayed voting on a cigarette tax collection contract after objections were raised by two finalists that lost out.
The State Administrative Board was expected to approve the Treasury Department's recommendation for a five-year contract with Xerox on Tuesday. But the item was removed from the agenda.
A state spokesman says he is checking into why no action was taken.
The Associated Press reported this month that Xerox was in line for the $9.6 million contract despite allegations of bias in the selection process and an offer from a competitor to do the work for at least $1.7 million less.
If awarded the contract, Xerox will provide 450 million counterfeit-resistant stamps a year that are applied to cigarette packs to show taxes have been paid.
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The governor was joined by Michigan First Lady Sue Snyder, Lt. Gov. Brian Calley, and a couple dozen supporters to cart boxes of petitions into the state Bureau of Elections.
Snyder says he intends to run on his record and the state’s improving economy.
“We said we going to do a lot of things, and we did and Michigan’s the comeback state, and we should be proud of that, but what I would say is, let’s build on that,” he said. “Let’s keep going. Let’s go even faster and show an improvement in our economy. More opportunities for people.”
Democrats are trying to make the tax on pension income and school spending campaign issues. Former Congressman Mark Schauer is expected to file petitions tomorrow (Fri.) to appear on the Democratic ballot. No other candidates have filed or announced plans to run in either primary, which would clear the way for Snyder and Schauer to face each other in November.