Five Stories That Matter in Michigan This Week – October 11, 2024

  1. Michigan Legislature Passes Data Center Tax Break Bill

Last week, the Michigan House passed Senate Bill 237 by a vote of 56 to 41. The bill, if signed into law, would exempt large data centers from Michigan use taxes on equipment through at least 2050.

Why it Matters: With the massive computing needs of artificial intelligence, data center development has exploded across the country. While this bill would likely make Michigan more attractive to data center developers, opponents argue that having more data centers—which consume massive amounts of energy—would undermine Michigan’s clean energy goals.

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  1. Attorney Douglas J. Austin Honored as “Lawyer of the Year” in Real Estate Law in Lansing

Fraser Trebilcock attorney Douglas J. Austin has been named the Best Lawyers in America® 2025 Real Estate Law “Lawyer of the Year” in Lansing. “I am honored to be recognized by Best Lawyers® as a 2025 ‘Lawyer of the Year’ for Real Estate Law in Lansing,” said Mr. Austin.

Why it Matters: This is a high distinction, as only one attorney in each practice area in each community is identified as “Lawyer of the Year.” Mr. Austin has been at the center of real estate law for over 45 years. In addition to being a shareholder at Fraser Trebilcock, he is also the past chair of the firm’s Real Estate Law department. Read more.

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  1. Business Education Series: Avoid the Five Business Dangers

On Wednesday, October 30, Tom Hamp, Hamp Business Coaching, will delve into the critical issues of poor leadership skills and their impact on organizational success, explore strategies to overcome underperforming sales, and discuss the consequences of ineffective marketing. Additionally, we will examine the importance of robust human capital management and the detrimental effects of financial mismanagement. This seminar is designed to provide practical solutions and actionable insights to help you navigate and resolve these common business problems effectively.

Why it Matters: Learn how to understand your business’s financials, understand profit and loss and use it to your advantage. Also learn how leadership impacts staff and how to manage employees better by increasing leadership skills. Full information and to register.

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  1. Fraser Trebilcock Welcomes Charles L. Lasky to the Firm

Fraser Trebilcock is pleased to announce the hiring of attorney Charles L. Lasky who will work primarily in the firm’s Lansing office. Mr. Lasky has over four decades of experience with a primary focus on real property law: commercial and residential real estate, real estate development, tax incentive financing, tax law, business law: business mergers, sales and acquisitions, business entity formation, corporate law, and financial institution law. His extensive knowledge and experience make him a trusted advisor in complex legal matters.

Why it Matters: His prowess in the legal and business industry should not overshadow his involvement with his community. Mr. Lasky has served on the Board of Directors of various financial institutions in Michigan, Nevada, and Colorado, as well as serving on the Board of Trustees for local organizations such as the Ingham Regional Medical Center, and the Ingham Regional Healthcare Foundation. Learn more.

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  1. Michigan Sales Tax Applies to Credit Card Surcharges

Recently, the Michigan Department of Treasury provided guidance on the application of a Michigan sales tax on credit card “surcharges” for businesses. The Michigan Department of Treasury considers the surcharge added to a customer’s bill a “service cost” or “other expense of the seller” under the General Sales Tax Act, making it part of the taxable “sales price” of a transaction.

Why it Matters: Compliance with this guidance is important. Failure to do so may result in underpayment of taxes due to the State of Michigan, potentially subjecting your business to penalties and interest. If you have any questions about how this guidance applies to your specific situation, please contact Paul McCord or your Fraser Trebilcock attorney. Read more.

Related Practice Groups and Professionals 

Real Estate Law | Doug Austin
Charles Lasky
Business & Tax | Paul McCord

Five Stories That Matter in Michigan This Week – July 19, 2024

  1. Whitmer Signs Election Recount Bills into Law

On July 8, 2024, Gov. Whitmer signed Michigan Senate bills 603 and 604 into law, which modify the requirements for conducting ballot recounts and prosecuting election-related crimes. For example, boards of canvassers will now be required to refer any allegations of fraud to the relevant county prosecutor, rather than conducting a recount.

Why it Matters: The new laws are effective immediately and will apply to upcoming August primary races.

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  1. Michigan Cannabis Sales Through Six Months of 2024 Eclipses $1.6 Billion

Through the first six months of sales in 2024, Michigan cannabis sales have totaled $1,629,691,997.67, an increase from 2023’s six month totals, which equal $1,426,137,854.75.

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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  1. Michigan CRA Publishes June ’24 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sale of an ounce of cannabis in June was $85.88, a decrease from $88.15 in May. This is a decrease from June 2023, where the average price was $89.27.

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.

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  1. Proposed Michigan Legislation to Attract Data Centers Is Frozen After Pushback from Environmental Groups

Proposed legislation to expand tax incentives aimed at attracting large data centers to Michigan is stopped for now after pushback from environmental groups that claim the bills would increase energy demands, potentially causing consumer rates to increase, while standing in the way of Michigan achieving its clean energy goals.

Why it Matters: While the bills are halted for now, it is anticipated that supporters of the legislation will continue to push for the bills to pass. The bills would create a new sales and use tax exemption for “enterprise data centers.”

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  1. A Health Professional’s Guide to Navigating the Disciplinary Process: What to Expect if You Are Facing a Professional Licensing Investigation or Administrative Complaint

Health professionals are committed to caring for patients with expertise, compassion, and integrity. However, in the heavily regulated healthcare field, those professionals can sometimes find themselves navigating not just the medical challenges of their patients but licensing issues of their own as well. Licensing issues can arise unexpectedly, and, when they do, they can cause tremendous stress and uncertainty.

Why it Matters: As an attorney with years of experience handling professional licensing matters for health professionals, Robert J. Andretz has witnessed firsthand how professional licensing investigations and Administrative Complaints can disrupt health professionals’ careers and their ability to provide patient care. He will explore how to navigate the disciplinary process in Michigan so that you can know what to expect if you are ever faced with a threat to your license. Learn more.

Related Practice Groups and Professionals

Cannabis Law | Sean Gallagher
Professional Licensing | Robert Andretz