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Detroit Regional Chamber > Advocacy > Chamber Perspective: 2023 Fall Legislative Preview

Chamber Perspective: 2023 Fall Legislative Preview

August 30, 2023

The rapid pace of the Spring legislative session shows no sign of slowing. Michigan’s Democratically controlled legislature has accomplished several items in 2023 applauded by the Chamber, including expanding the Elliott-Larsen Civil Rights Act and increasing the Working Families Tax Credit (formerly the Earned Income Tax Credit).

The Fall session is likely to be consequential with several items the business community should be aware of and might harm Michigan’s economic environment. Read more below.

Paid Family Leave

Several Democratically controlled states, now including Michigan, are moving to mandate paid family leave on employers. Michigan’s proposal would raise taxes on businesses and employees to fund a new government bureaucracy to pay for family leave time.

Chamber perspective:

 

Though this can benefit employees and improve employers’ competitiveness, the Chamber opposes this legislation as a one-size-fits-all approach that entails more taxes. However, the Chamber continues to support companies making individual decisions that best attract and retain talent through desirable benefits.

Economic Development

Legislators are considering new programs and tax credits to provide additional resources to the Michigan Economic Development Corporation (MEDC) to help attract high value employers to Michigan to remain competitive with other states.

Chamber perspective: 

 

The Chamber supports effective and competitive R&D tax credits and a payroll tax credit that provide the MEDC tools to attract businesses and the high-wage jobs of the future. 

Land Value Tax

Mayor Mike Duggan’s Land Value Tax Plan would reduce property taxes for Detroit homeowners by 30% while increasing the tax on land, encouraging the development of vacant and underutilized properties. It requires approval from the Michigan Legislature, Detroit City Council, and Detroit voters.

 

Chamber perspective:

 

The Chamber is working with the Duggan administration to support the plan – presented at the  2023 Mackinac Policy Conference – as it will bring Detroit taxation rates in line with other municipalities and spur development in Detroit’s neighborhoods and downtown.

Energy Policy

The Legislature is discussing climate legislation to create a clean energy mandate and authorize the Public Services Commission to site new renewable energy generation. Bills also address the continuation of the Energy Waste Reduction Program.

Chamber perspective:

 

 While the Chamber encourages the development and adoption of diverse clean energy sources, it is concerned with the mandate in question. Unrealistic goals and timelines that accompany it may have negative impacts on the reliability and cost-effectiveness businesses seek in energy solutions. The Chamber also supports the Public Service Commission’s enhanced ability to site renewable energy.

Approaching Year’s End

Mayoral and Presidential politics may bring an early end to the legislative year. If Reps. Lori Stone and Kevin Coleman are elected mayors of Warren and Westland, respectively, Democrats will temporarily lose their one-seat majority.

This would present the opportunity to adjourn sine die (without a date set for future action or meeting) for the year and allow bills that were not given immediate effect a 90-day runway. Bills impacted include one that would allow Michigan to move its Presidential primary to February 27.

The Chamber is also monitoring other potential anti-business legislation in Lansing around property litigation, nurse staffing ratios, and environmental clean-up that would be costly to business. The Government Relations team will continue representing the best interests of members and the business community as these items are approached.