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Free Webinars
Free member webinars in September and October will focus on social media tricks and tips and loss prevention tools and equipment. Page 2
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Index Turns 20
The Michigan Retail Index, the state’s only monthly gauge of how Michigan’s retail businesses are faring, turns 20 this summer. Page 6
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Buy Nearby News
Read the latest Buy Nearby ebulletin, a brief collection of news and tips to help you prepare for Get Caught Blue-Handed Day on October 4. Page 12
® June 2014 Vol. 39 No. 3
Voters get opportunity to eliminate Michigan personal property tax A large coalition that includes MRA and other leading business groups, state officials and local communities is urging voters to approve an August 5 statewide ballot proposal to get rid of the personal property tax. Proposal 1 would eliminate the tax immediately for small businesses (those with $80,000 or less in personal property) and phase it out over nine years for larger businesses. The proposal guarantees that 100 percent of the money a community “loses” from elimination of the personal property tax would be replaced using the more stable state use tax. The legislature already adopted the elimination and replacement plan, but dedicating use tax funds to the communities requires approval by voters. “This proposal solves two problems at once without a tax increase on anyone,” said William J. Hallan, MRA’s senior vice president and general counsel. “It supports small business by reforming the personal property tax and it stabilizes local communities by providing dedicated funding to services such as police, fire protection, schools, ambulances, jails, roads and libraries.” More Jobs Backers point to an economic study that projects passage of Proposal 1 would lead to the creation of 15,000 Michigan jobs and increase business investment by $450 million. The personal property tax is paid by all businesses every year on every piece of equipment they own. The tax is unique to Michigan and puts the state at a disadvantage with other states Continued on page 7
The official publication of the Michigan Retailers Association
SM
www.retailers.com
Policyholders to vote on growth plan Policyholders of Retailers Mutual Insurance Company will vote at the August 19 Annual Meeting on a plan designed to help the insurer grow
more rapidly, increase its financial strength and provide greater benefits to policyholders in the future. The proposal to change the com-
(Proposed)
(2006)
(1981)
Leader of Pure Michigan to receive Legacy Award
pany’s corporate structure has the unanimous support of the Retailers Mutual Board of Directors and company management. State regulators have approved the move, subject to several conditions, including policyholder ratification. The plan calls for Retailers Mutual to change from a mutual insurance company to a mutual insurance holding company. The change would provide the insurer with greater structural, financial and strategic flexibility to respond quickly and decisively to changes in the marketplace. “On one hand, mutual insurance companies have some important characteristics, such as the ability to put policyholders’ interests first. On the other hand, the structure is inflexible and a company is limited on how it can grow and raise capital for reinvestment,” said James P. Hallan, president and CEO of Retailers Mutual and Michigan Retailers Association. “A mutual holding company structure offers the best of both worlds: it is still controlled by the policyholders, but its structure allows for the infusion of additional capital, which could be used to upgrade technology and operational efficiencies, improve claims management or develop new product lines.” Continued on page 8
The recently retired leader of the the park’s 2014 Legacy Award durstate’s wildly successful ing the Legacy Gala, the Pure Michigan campaign attraction’s signature and the rest of his team fundraising event. will be honored on Au“What better time to gust 16 at the Michigan celebrate George ZimmerLegacy Art Park at Crysmann’s leadership and the tal Mountain resort in work of the talented staff Thompsonville. at Travel Michigan,” said George Zimmermann, Renee Hintz, executive diwho retired in April from rector of Michigan Legacy his post as vice president Zimmerman Art Park. of Travel Michigan, will receive “The creative efforts of the advertising team at McCann Erickson, the Travel Commission and the dedicated leaders throughout the Michigan travel industry have not only boosted tourism in our state, residents have rediscovered their Michigan pride.”
Legislators hike minimum wage
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Despite strong opposition from the state’s business community, state lawmakers under the gun from a likely ballot proposal increased Michigan’s minimum wage to $9.25 by 2018 and provided for future annual raises tied to the cost of living. Governor Rick Snyder signed the legislation into law on May 27, shortly after the bipartisan measure received legislative approval. It took only three hours for Senate Bill 934 to sail through the House and Senate and make its way to the governor. The new law raises the state’s minimum wage from its current $7.40