“The last two weeks or so since the service tax was passed has shown there is major unintentional ramifications from the passage of the bill,” said Matt Sweeney, chief of staff for Brown. “It will cost the state jobs.”

Brown’s office has received plenty of phone calls and e-mails from business owners on how they plan to leave Michigan if the tax goes into effect, Sweeney said.

“We’ve gotten hundreds and hundreds of calls and e-mails from people frustrated,” said Todd Anderson, vice president of government relations for the Small Business Association of Michigan. “We’ve never seen this amount of interest or anger at the Legislature.”

Part of that anger comes from the way the tax was voted on in the middle of the night, without a public hearing, and the arbitrary list of services that were included, Anderson said.

Those services range from tour operators and warehousing to janitorial services. In all, there are about 20 separate categories of personal and business services included in the expansion.

“There was an effort to characterize this as a tax on luxury services, which is disingenuous at best,” Anderson said.

The Senate Fiscal Agency estimates the services could bring in about $613.8 million.

The Michigan Chamber of Commerce also is looking at legislators to repeal the tax, but if they fail there, the chamber will take the issue to the voters.

“We’re trying to convince lawmakers to repeal it before it goes into effect on Dec. 1,” said Tricia Kinley, director of tax policy and economic development for the Michigan Chamber of Commerce. “If that does not work, we are preparing a ballot drive to put this issue about the service tax before the voters in Nov. 2008.”

The revenue that the service tax is expected to provide the state could be used by job providers and businesses at a time when Michigan has the highest unemployment rate, Kinley said.

“About 80 percent of the budget solution relies on tax increases … it will damage job providers and our overall economy,” Kinley said.

Despite proposals to repeal the Legislation, no substitutes to the tax have been provided.

Changes to the service tax would have to be bipartisan and revenue neutral, said Gov. Jennifer Granholm, according to The Associated Press. Thus, a substitution to the tax would have to raise as much money as the approved sales tax expansion.

“One of the main concerns we have with whatever kind of changes is that we find a way to avoid devastating cuts without this revenue,” said Tom Lenard, spokesman for the Michigan Senate Democratic Caucus. “It’s disturbing now that some members of the Republican-controlled Senate are so willing to quickly change the compromised solution without another revenue (in place).”