Real Estate | Fraser Blog

Five Stories That Matter in Michigan This Week – September 29, 2023

Detroit Mayor’s Land Value Tax Plan Moves to House Floor

Earlier it was covered that Detroit Mayor Mike Duggan spoke to lawmakers at the House Tax Policy Committee hearing on his land value tax plan. The Committee passed the proposed plan, and it now moves onto the House Floor.

Why it Matters: According to the plan laid out online, if enacted, would replace certain tax rates for homes and property structures with a higher rate of tax on land, with the purpose of targeting unused, unproductive, or vacant land while providing benefits to homeowners and businesses.

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Momentum Builds for Michigan Clean Energy Bill

Clean energy bill sponsors in the Michigan Senate took public testimony during a committee hearing last week, as the Michigan legislature continues to push for comprehensive clean energy legislation. Among policies being debated include setting a carbon-free energy standard, reducing energy waste, increasing access to solar power, and expanding electric vehicle charging stations.

Why it Matters: Beyond environmental goals, access to significant federal funding hangs in the balance. In order to access certain funds allocated under the federal Inflation Reduction Act, states must adopt certain clean energy standards into law.

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Employee Benefits Attorney

Fraser Trebilcock is seeking applications for a position in our Firm from well-qualified attorneys with strong experience in employee benefits, including employer sponsored retirement plans, employee health plans and general ERISA compliance.

Why it Matters: The successful candidate should have a solid and portable client base. Fraser will consider candidates who may lack a portable client base provided they have a solid background in these practice areas and demonstrate an aptitude for client service and growth. Learn more and to apply.

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Michigan 2023 Cannabis Sales Through 6 Months Exceeds 2022 Sales by Almost $400 Million

Per data released by the Cannabis Regulatory Agency, through six months of sales in 2023, totaling $1,426,137,854.75, Michiganders have exceeded sales compared to 2022 data through six months, which totaled $1,029,451,152.66. This is an almost $400 million increase through the first six months of this year.

Why it Matters: Marijuana sales remain strong in Michigan, particularly for recreational use. However, there still are significant concerns about profitability and market oversaturation that the industry is contending with.

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Business Education Series – Maximizing Productivity: Strategies for More Effective Workdays

Productivity is a habit and it’s something you can become better at every day by choosing the methods and tricks that work for you.

Why it Matters: In the October Business Education Series program, Emmie Musser, Future of Work Strategist with TechSmith, is going to discuss some tried-and-true strategies for more productive and effective workdays. Learn more.

Related Practice Groups and Professionals

Real Estate | Jared Roberts
Energy Law | Mike Ashton
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – September 15, 2023

Michigan House Bill Would Provide Tax Credit for High School or College Graduates Who Move to Michigan

Michigan House Bill 4934, which is pending in the House, would provide tax incentives for high school and college graduates outside of Michigan to move to the state. The bill would allow them to claim a tax credit the taxpayer paid on a qualified student loan during the tax year on student loans paid starting Jan. 1, 2024.

Why it Matters: The bill would address two challenges: (1) the heavy burden of student loan debt for many young people, and (2) the “talent gap” faced by Michigan employers.

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Attorney Michael H. Perry Honored as “Lawyer of the Year” in Environmental Law in Lansing

Fraser Trebilcock attorney Michael H. Perry has been named the Best Lawyers in America^© 2024 Environmental Law “Lawyer of the Year” in Lansing. This is a high distinction, as only one attorney in each practice area in each community is identified as “Lawyer of the Year.”

Why it Matters: “I am honored to be recognized by Best Lawyers^©as a 2024 ‘Lawyer of the Year’ for Environmental Law in Lansing,” said Mike Perry. Because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers^©is considered a singular honor. Only five percent of attorneys in Michigan are awarded the honor. Read more about Mike.

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Detroit Mayor Discusses New Land Value Tax Plan With Lawmakers

This week, Detroit Mayor Mike Duggan spoke to lawmakers at the House Tax Policy Committee hearing on his land value tax plan, which would change property taxes while encouraging economic growth across Detroit.

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Michigan Cannabis Sales Exceed $276 Million in August

Cannabis sales surpassed $276 million in August, via the monthly report from the Michigan Cannabis Regulatory Agency. Michigan adult-use sales came in at $270,628,119.44, while medical sales came in at $5,643,278.24, totaling $276,271,397.68.

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Business Education Series – Practical A.I. Business Solutions

Explore the transformative potential of Artificial Intelligence in the business landscape during our Lansing Regional Chamber of Commerce Business Education Series.

Why it Matters: From understanding the capabilities of AI models like ChatGPT to creating customized workflows using API integrations and automation tools, discover how AI can drive innovation and efficiency across industries. Learn more.

Related Practice Groups and Professionals

Higher Education | Ryan Kauffman
Environmental Law | Mike Perry
Real Estate | Jared Roberts
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – September 1, 2023

Will Michigan High School Athletes Gain NIL Rights?

Michigan House Bill 4816, sponsored by Rep. Jimmie Wilson Jr. (D-Ypsilanti), would allow high school athletes in Michigan to profit from name, image and likeness (NIL) deals if passed.

Why it Matters: 19 states have laws that allow high school athletes to profit off of use of their NIL. The market for NIL deals is growing—various projections estimate that NIL revenue earned by athletes will top $1 billion this year.

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Fraser Trebilcock Lawyers Selected Among ‘The Best Lawyers in America©’ 2024 Edition in Lansing

Fraser Trebilcock is proud to announce that 10 attorneys from the firm have been selected for inclusion in The Best Lawyers in America© 2024 edition in Lansing. Only five percent of attorneys in Michigan are awarded with the honor.

Why it Matters: Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers is based on an exhaustive peer-review survey in which almost 87,000 leading attorneys cast nearly ten million votes on the legal abilities of other lawyers in their practice areas; because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers is considered a singular honor. Learn which Fraser attorneys were selected.

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Hosting an Event that Involves Cannabis in Michigan Requires Proper Licensing

As the legal cannabis industry continues to grow in Michigan, more events involving the consumption of cannabis are being hosted across the state. As the Cannabis Regulatory Agency (CRA) discussed in a recent information release, such events require proper licensing. Specifically, according to the CRA, “CRA rules require a person who allows consumption of marijuana products on the premises of a non-residential location – and charges a fee for entry, sells goods or services while individuals are consuming on the premises, or requires membership for entry – must acquire either a designated consumption establishment license or a temporary marijuana event license. An application for a temporary marijuana event license must be submitted 90 days prior to the date of the event.”

Why it Matters: Violations of requirements may result in disciplinary action.

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Housing Inequality May be on the Michigan Legislature’s Agenda this Fall

Recent news reports suggest that one of the Michigan’s legislature’s priorities for this fall will be to pass a slate of bills meant to address housing inequality. This may include a 15-20 omnibus bill package addressing issues such as (according to Mlive.com) “efforts to clarify the organizing rights of tenants, requiring landlords pay for the relocation of tenants with red-tagged buildings and establishing a standard criteria for what a housing inspector may consider a safe and livable dwelling.”

Why it Matters: With high mortgage rates and low for-sale housing inventory, affordable housing is a hot-button issue for many Michiganders. Data from the National Low Income Housing Coalition’s Out of Reach report ranked Michigan 28th worst in the nation for rental affordability.

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Business Education Series – Practical A.I. Business Solutions

Explore the transformative potential of Artificial Intelligence in the business landscape during our Lansing Regional Chamber of Commerce Business Education Series.

Related Practice Groups and Professionals

Higher Education | Ryan Kauffman
Real Estate | Jared Roberts
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – August 25, 2023

Housing Inequality May be on the Michigan Legislature’s Agenda this Fall

Why it Matters: With high mortgage rates and low for-sale housing inventory, affordable housing is a hot-button issue for many Michiganders. Data from the National Low Income Housing Coalition’s Out of Reach report ranked Michigan 28th worst in the nation for rental affordability.

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Business Education Series – Practical A.I. Business Solutions

Explore the transformative potential of Artificial Intelligence in the business landscape during our Lansing Regional Chamber of Commerce Business Education Series.

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Michigan Supreme Court Clarifies the Difference Between “Requirements” and “Release-by-Release” Contracts Under the Uniform Commercial Code

In an important decision that impacts customers and suppliers in the manufacturing industry, the Michigan Supreme Court, in MSSC, Inc. v. AirBoss Flexible Prods. Co., clarified the contractual circumstances under which a supplier can become bound to a long-term “requirements contract” under the Uniform Commercial Code.

Why it Matters: In light of the Supreme Court’s decision, buyers and sellers of goods should review their contracts with legal counsel to evaluate whether they meet the standards for a requirements contract. Read more on the topic from your Fraser Trebilcock attorney.

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CRA Publishes July 2023 Data; Average Price Increases

Per data released by the Cannabis Regulatory Agency, the average retail price for adult-use sales of an ounce of cannabis is $98.65, an increase from $89.27 in June. This is still a large decrease from July 2022, where the average price was $121.58.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices. Contact our cannabis law attorneys if you have any questions. 

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Michigan Supreme Court Rules on Open and Obvious Doctrine

In its decision in a pair of consolidated cases (Kandil-Elsayed v F & E Oil, Inc and Pinsky v Kroger Co of Mich), the state’s high court did away with a legal doctrine known as “open and obvious.” Generally speaking, under this doctrine, a premises possessor (whether that is the landowner, land contract vendee, lessee, or other party with the right to possess the property) does not have a duty to warn individuals of potentially dangerous conditions on the premises if the condition is “open and obvious.”

Why it Matters: What happens next is anybody’s guess, but likely effects of this decision include an increase in the number of personal injury lawsuits filed, an increase in the number of personal injury cases going to trial, and across the board increases in property insurance rates for commercial and residential property owners.

Related Practice Groups and Professionals

Real Estate | Jared Roberts
Business & Tax | Robert Burgee
Cannabis Law | Sean Gallagher

Five Stories That Matter in Michigan This Week – June 23, 2023

Client Alert: PCORI Fees Due by July 31, 2023!

In Notice 2022-59 the Internal Revenue Service set forth the PCORI amount imposed on insured and self-funded health plans for policy and plan years that end on or after October 1, 2022, and before October 1, 2023.

Why it Matters: Notice 2022-59 sets the adjusted applicable dollar amount used to calculate the fee at $3.00. Specifically, this fee is imposed per average number of covered lives for plan years that end on or after October 1, 2022, and before October 1, 2023. For self-funded plans, the average number of covered lives is calculated by one of three methods: (1) the actual count method; (2) the snapshot method; or (3) the Form 5500 method. Learn more from your Fraser Trebilcock attorney.

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Michigan Legislation Aims to Make it Easier to Hire Teachers and Counselors

On Thursday, the Michigan House passed legislation—which cleared the Michigan Senate in April—that aims to reduce barriers for out-of-state teachers and school counselors to work in Michigan’s schools. Senate Bill 161 would change Michigan’s teacher certification requirements, and Senate Bill 162 would similarly ease the way for out-of-state counselors to work with Michigan students.

Why it Matters: Michigan schools, like many in other parts of the country, have faced staffing shortages similar to those other employers have struggled with.

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What You Need to Know About Pet Trusts

A pet trust is a legal document that allows you to provide for the care of your beloved pet if you become incapacitated and after you pass away. A pet trust can be created as a standalone document, or as part of a revocable (living) trust or will. In addition, a durable power of attorney can provide instructions to an agent for the care of a pet during your lifetime.

Why it Matters: Estate planning with pets in mind is an increasingly popular way for pet owners to ensure that their furry companions are taken care of, even when the owners can no longer care for themselves. Learn more about how to effectively care for your pets if you become incapacitated or pass away.

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New Distracted Driving Law Goes into Effect June 30

Beginning June 30, Michigan motorists will be prohibited from using any mobile electronic device while operating a motor vehicle, even if at a stop sign or red light. This includes sending/receiving texts, accessing social media, or recording videos.

Why it Matters: First time offenders will face a $100 fine and/or 16 hours of community service, in addition to one point being added to the individual’s driving record. Penalties will increase for repeated violations, and on the third offense, individuals may be required to take a drivers improvement course.

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Fraser Trebilcock Attorney Obtains Dismissal for Firm Client

Fraser Trebilcock attorney Jared Roberts recently obtained a dismissal in a circuit court case brought against a brokerage and salesperson.

Why it Matters: In this case, which involved interpretation of transaction documents, a county “Time of Sale” well and septic inspection ordinance and water quality issues, Mr. Roberts obtained dismissal in the first responsive document. Learn more about their practice and how they may be able to assist.

Related Practice Groups and Professionals

Employee Benefits | Bob Burgee
Employee Benefits | Sharon Goldzweig
Trusts & Estates | Elizabeth Siefker
Real Estate | Jared Roberts

Five Stories That Matter in Michigan This Week – June 16, 2023

Changes to Michigan’s Elliott-Larsen Civil Rights Act

Employers should be aware of recent actions taken by the Michigan legislature with respect to Michigan’s Elliott-Larsen Civil Rights Act (ELCRA). Governor Whitmer recently signed into law an amendment that extends the ELCRA’s prohibitions against discrimination to individuals who have terminated a pregnancy. On June 8, 2023, the Michigan House of Representatives voted to pass, which amends the definition of race within ELCRA to ban discrimination based on hair and other traits associated with racial or ethnic identity. Governor Whitmer is expected to sign this bill into law.

Why it Matters: Lawmakers who introduced the bills argue that the legislation will increase access to support services for domestic and sexual violence victims, and also will protect their privacy and shielding them from additional harassment.

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CRA Publishes May 2023 Data, Average Price Hovers

Per data released by the Cannabis Regulatory Agency, the average retail price for adult-use sales of an ounce of cannabis is $90.64, a small increase from $87.76 in April. This is still a large decrease from May 2022, where the average price was $130.62.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices. Contact our cannabis law attorneys if you have any questions.

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Fraser Trebilcock Attorney Obtains Dismissal for Firm Client

Fraser Trebilcock attorney Jared Roberts recently obtained a dismissal in a circuit court case brought against a brokerage and salesperson.

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Detroit Mayor Unveils Land Value Tax Plan

At the Mackinac Policy Conference in May, Detroit Mayor Mike Duggan announced a proposal, called the Land Value Tax Plan, that if passed, would change property taxes while encouraging economic growth across Detroit.

Why it Matters: According to the plan laid out online, if enacted, would replace certain tax rates for homes and property structures with a higher rate of tax on land, with the purpose of targeting unused, unproductive, or vacant land while providing benefits to homeowners and businesses.

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CRA Revokes License for Marijuana Business for Illicit Products

The Michigan Cannabis Regulatory Agency announced on June 15 that it was revoking the license for marijuana business Candid Labs, which operates as Layercake Farms 2, after they were found to have illicit and unlicensed marijuana, in addition to other license violations including an inoperable video surveillance system.

Why it Matters: A requirement that every marijuana business must adhere to is properly working video surveillance system that is in place 24 hours a day, seven days a week, at all licensee locations. Failure to comply will result in fines, possible license suspension and/or license being revoked. Contact our cannabis law attorneys if you have any questions.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | Dave Houston
Cannabis Law | Sean Gallagher
Real Estate | Jared Roberts

Canada’s Ban on Foreign Homebuyers

As of January 1, 2023, Canada has restricted the purchase of residential property by non-Canadians. The Government of Canada has enacted the Prohibition on the Purchase of Residential Property by Non-Canadians Act in an effort to stabilize the Canadian housing market and help make homes more affordable for Canadian citizens and those living in Canada. Passed by the Canadian Parliament in June of 2022, this new legislation prevents non-Canadians and corporations controlled by non-Canadians from purchasing, directly or indirectly, any residential property in Canada for two years.

The Act defines residential property as any real property that is a detached home or similar building which contains no more than three dwelling units, as well as semi-detached homes, rowhouses, or condominiums, and vacant land zoned for residential and mixed-use. Thus, the legislation does not explicitly ban the purchase of larger buildings with multiple units.

A key parameter in the Act’s accompanying Regulations notes that this legislation will only apply to properties located in a “Census Metropolitan Area” or a “Census Agglomeration.” A census metropolitan area has a total population of at least 100,000, with at least 50,000 living in its core, while a census agglomeration has a core population of at least 10,000 people, based on data from the previous Census of Population Program. Thus, homes and recreational properties, such as cottages and lake houses, located outside of Census Metropolitan Areas or Census Agglomerations will not be considered residential property and not subject to the ban.

The Act further lays out exceptions to specific categories of individuals who will be allowed to purchase residential properties in the two-year period. There is no ban on the purchase of property by Canadian citizens, persons registered under the Indian Act, and permanent residents. Refugees, buyers with Canadian spouses or partners, and temporary residents studying or working in Canada, all meeting specific criteria, are not subject to the ban. Additionally, the new legislation will not affect individuals who acquire an interest or a real right resulting from death, divorce, separation, or a gift.

Banned individuals who violate the prohibition may be subject to a penalty of up to $10,000 CDN and may be forced to sell the property purchased, “receiving no more than the purchase price paid.” In addition, those who knowingly assist a non-Canadian in “contravening the prohibition” may also be subject to the fine.

The prohibition does not apply if a non-Canadian becomes liable or assumes liability under an agreement of purchase and sale of residential property prior to January 1, 2023.

To learn more about how this may affect your potential of purchasing of a home or vacation property in Canada, please contact us.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions.

Fraser Trebilcock attorney Laura M. DeMarco concentrates her practice on insurance law and general business matters. Laura can be reached at ldemarco@fraserlawfirm.com or (517) 377-0834.

Five Stories that Matter in Michigan This Week – December 30, 2022

NIL Legislation Takes Effect December 31, 2022

Michigan House Bill 5217 which was passed into law in 2020, takes effect December 31, 2022 and sets new standards for how student-athletes can earn compensation for the use of their name, image, and likeness (“NIL”) in Michigan.

Why it Matters: Student-athletes, covered higher education institutions, and businesses must ensure that NIL deal comply not only with NCAA rules and regulations, but also with the new standards that will apply in the State of Michigan starting in 2023. For example, higher education institutions are prohibited from paying a student-athlete compensation directly for the use of their NIL rights, or revoking or reducing a student-athlete’s athletic scholarship because they earned compensation from an NIL deal.

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CRA Unveils Cannabis Market Taxation and Regulatory Compliance Analysis Grant Program

Stemming from the state’s 2022-2023 budget, the Michigan Cannabis Regulatory Agency must award a grant to a selected party to start a program that is intended to analyze tax reporting, collection, and regulatory compliance within the Michigan cannabis market and provides up to $500,000 for performing the required work.

Why it Matters: Illegal cannabis flooding the market is still a major issue that is troubling Michigan’s cannabis market. This new program will identify relevant areas with information gathered from tax reporting to investigate for possible misconduct and other regulatory noncompliance.

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Michigan Department of Technology, Management and Budget Prevailing Wage Policy Upheld by Court of Claims

The Michigan Court of Claims sided with the state and ruled that DTMB did not violate the law when it implemented its prevailing wage policy on March 1, 2022.

Why it Matters: In July, 2021, the Associated Builders and Contractors of Michigan (“ABC”) filed a lawsuit against the State of Michigan with a motion for preliminary injunction asking the Court to enjoin DTMB from requiring prevailing wages for state contracts. ABC argued that Michigan cannot require the wage rate of its contractors because of the repeal of Michigan’s prevailing wage law in 2018. In October, the Michigan Court of Claims sided with the state. ABC has appealed the ruling. For the time being, pending the outcome of the appeal, DTMB’s prevailing wage policy remains in effect for construction projects financed in whole or in part by State of Michigan funds. Learn more on the subject.

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Bills Seeking to Expand Affordable Housing in Michigan Are Passed

Governor Whitmer signed a package of bills (Senate Bills 362, 364, 422 and 432) intended to support the development of more affordable housing units in communities across Michigan, with a particular focus on creating new housing units in cities.

Why it Matters: Lack of affordable housing is a big problem in Michigan and throughout the country. From an economic standpoint, when there is a lack of affordable housing, it makes it difficult for employers to attract and retain workers. Data from the Resilient Homes Michigan coalition says that Michigan is short about 203,000 affordable rental homes for the 320,000 renting households in the state that have incomes at or below 30% of the median income for their area.

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Officials Unveil $2 Million Grant to Support High-Tech Talent Workforce in Michigan

Earlier this month, Governor Whitmer along with officials from the Department of Labor and Economic Opportunity, Michigan Office of Future Mobility and Electrification, and the Detroit Regional Chamber, unveiled a two million dollar grant program to MichAuto to support and build up the high-tech talent workforce in Michigan.

Why it Matters: Investing in Michigan’s workforce and talent pipeline is key for the state to keep workers from leaving and relocating to other states. It builds on the state’s MI Future Mobility Plan to continue attracting businesses and workers to work in the state related to the future of transportation.

Related Practice Groups and Professionals

Higher Education | Ryan Kauffman
Business & Tax | Ed Castellani
Real Estate | Jared Roberts
Labor, Employment & Civil Rights | Aaron Davis

Five Stories that Matter in Michigan This Week – December 23, 2022

New Bills Passed to Expand Affordable Housing in Michigan

Governor Whitmer recently signed a package of bills (Senate Bills 362, 364, 422 and 432) intended to support the development of more affordable housing units in communities across Michigan, with a particular focus on creating new housing units in cities.

Why it Matters: Lack of affordable housing is a big problem in Michigan and throughout the country. From an economic standpoint, when there is a lack of affordable housing, it makes it difficult for employers to attract and retain workers. According to the Resilient Homes Michigan coalition, Michigan is short about 203,000 affordable rental homes for the 320,000 renting households in the state that have incomes at or below 30% of the median income for their area.

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Michigan Slips Slightly in Economic Benchmarking Report

Michigan dropped two spots, to 31st nationally, in the Business Leaders for Michigan’s annual benchmarking report that ranks states’ economic performance. While Michigan improved over last year in some key metrics, other states did as well, leading to Michigan falling slightly in the rankings.

Why it Matters: As the national economy softens, it’s more important than ever for Michigan business and government leaders to focus on sound economic policy to help maintain—and improve—the state’s competitiveness. The report highlighted, for example, how Ohio jumped from 33rd in the rankings last year to 23rd this year.

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New NIL Legislation Takes Effect December 31, 2022

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Cabinet Changes Announced for Governor Whitmer’s Second-Term

Governor Whitmer recently announced changes in leadership for several state departments. Some of the changes include Dan Eichinger taking over as acting director of the Department of Environmental, Great Lakes and Energy, Shannon Lott will become the acting director of the Department of Natural Resources, Michelle Lange chosen as the acting director of the Department of Technology, Management and Budget, and Brian Hanna will become director of the Cannabis Regulatory Agency.

Why it Matters: Further changes may be in the future as the new directors in their respective departments take over and implement their policies. Fraser Trebilcock attorneys will monitor and report on any important situations.

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Officials Unveil $2 Million Grant to Support High-Tech Talent Workforce in Michigan

Related Practice Groups and Professionals

Real Estate | Jared Roberts
Higher Education | Ryan Kauffman
Business & Tax | Paul McCord
Election Law | Garett Koger

Five Stories that Matter in Michigan This Week – November 18, 2022

Proposed Modifications to Michigan Court Rules Seek to Make Pandemic-Inspired Changes Permanent, Making it Harder to Evict Tenants

During the COVID-19 pandemic, Michigan’s court rules related to landlord-tenant eviction procedures were modified in some ways to utilize video conferencing and to make certain proceedings more efficient, and modified in other ways that made it more difficult for landlords to evict residential and commercial tenants.

Why it Matters: Pursuant to recently proposed amendments to Michigan Court Rule 4.201, Michigan’s State Court Administrative Office has taken steps to make many pandemic-era changes to minimize evictions permanent. Some of the proposed rules are allowing a judge to adjourn trial for at least seven days if a default judgment is not entered, and staying an eviction case if a tenant has applied for rent assistance. Learn more from our Fraser Trebilcock real estate attorneys on the matter.

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Michigan Small Business Growth Remains Strong

According to a recent report from the small Business Association of Michigan, Michigan’s entrepreneurial economy continues to grow. Among other things, SBAM’s Entrepreneurship Score Card shows that Michigan small businesses have outperformed U.S. averages in terms of the percentages of businesses being opened and revenue.

Why it Matters: Small businesses have always been the backbone of economic growth in Michigan and across the country. This report highlights the resilience of Michigan entrepreneurial economy.

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Business Planning for the Future

A lot of small-to-medium size businesses devote time and focus on their near-term future but may not think of what 5-10 years will bring. The value of a business can often be in the ability to transition it to a new owner, but some business owners are unsure how to set themselves up to be successful in this arena.

Why it Matters: Capitalizing on the ability to plan for the long-term will aid your business in any transitions that may occur. Learn more here.

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CRA Issues Michigan Consumer Advisory

Earlier this week, CRA issued a bulletin giving notice to consumers that a marijuana business that operates as both a state-licensed medical and adult-use recreational, Green Culture, sold unregulated products that may have contained several contaminants, such as mold and/or bacteria.

Why it Matters: Following the investigation, the CRA suspended both of Green Culture’s licenses. Marijuana businesses should heed this as a warning, the CRA are cracking down on businesses that do not follow the strict guidelines and rules laid out by the state agency.

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IRS Announces 2023 Cost-of-Living Adjustment for Retirement and Health and Welfare Benefit Plans

The Internal Revenue Service recently announced 2023 cost-of-living adjustments for retirement and health and welfare benefit plans. The significant adjustments reflect the increase in inflation over the last year. The adjustments are detailed in IRS Notice 2022-55. For example, the contribution limit for a Simple 401(k) will increase to $15,500 in 2023 from $14,000 in 2022, and for a Health FSA, limits will increase to $3,050 in 2023 from $2,850 in 2022.

Why it Matters: Business owners and employers should be aware of these adjustments and share this information with employees as we approach the new year. If you have any questions regarding these adjustments, please contact our Employee Benefits team.

Related Practice Groups and Professionals

Real Estate | Jared Roberts
Business & Tax | Mark Kellogg
Cannabis Law | Sean Gallagher
Employee Benefits | Robert Burgee