- Michigan Adopts Version of the Uniform Assignment of Rents Act
Michigan recently adopted its version of the Uniform Assignment of Rents Act (the “UARA”), which establishes a comprehensive statutory model for the creation, perfection, and enforcement of security interests in rent. It is the sixth state to adopt the UARA.
Why it Matters: An assignment of rents allows a lender to collect income from rents derived from mortgaged property after the mortgage has been defaulted on. It protects a lender against scenarios in which a borrower (typically a commercial landlord) is continuing to collect rent from a property but is no longer making mortgage payments. The Michigan UARA codifies rules related to assignments of rents, bringing clarity to both lenders and borrowers.
- Michigan’s November 2022 Ballot to Include Fair Lending Proposal Capping Payday Loan Interest Rates
Supporters of the Payday Loan Interest Rate Cap ballot initiative in Michigan secured sufficient signatures to put the initiative on the November 2022 ballot.
Why it Matters: Once the petition is validated by Michigan’s Board of State Canvassers, the Michigan legislature will have 40 days to approve the initiative, as submitted. If the legislature rejects the initiative or fails to act by the deadline, the proposal will be placed on the November 2022 ballot for voters to decide. If passed, payday loan rates will be capped at 36% APR or less.
- Michigan Property Taxes are Set to Jump
Gas, groceries, and now summer property tax bills are spiking in Michigan. The inflation rate adjustment for this year’s property taxes in Michigan is 3.3%.
Why it Matters: Under Proposal A, there is a maximum 5% inflation rate adjustment allowed. While this year’s increase is less than the cap, it is the highest it has been since 2007. And many expect next year’s increase to hit the 5% cap. In a Detroit Free Press article, Patrick Anderson, CEO of the Anderson Economic Group said: “Basically, we’re baked in at 5% next year.”
- Michigan Leads the Nation in Energy-Sector Job Growth
According to an annual report recently issued by the U.S. Department of Energy, Michigan added 35,463 energy-sector jobs from 2020—more than any other state in 2021, boosted primarily by the automotive industry and its increased focus on hybrid and electric vehicle models.
Why it Matters: With soaring inflation and increased expectations of an economic recession, Michigan’s strength in energy-sector jobs bodes well for Michigan workers and businesses. The energy sector in Michigan represents 9.5 percent of state employment, with 393,207 jobs total.
- Michigan Bill Would Cut Taxes for Small Distillers, Provide Boost to Local Farmers
The Michigan legislature recently approved legislation that would cut the state Liquor Control Commission markup on small distillery alcohol from 65% to 32.5% if more than 40% of the grains and other crops used to distill the liquor are grown in Michigan.
Why it Matters: If signed into law by Governor Whitmer, this tax cut would result in large savings for small Michigan distillers and help them compete with larger national producers. Because the tax savings are tied to the purchase of grains and other crops grown in Michigan, local farmers would also benefit.
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