PA 231 Amendment to Commercial Rehabilitation Act Tax Abatements for Retail Food Establishments
Public Act 231 of 2008 amends the Commercial Rehabilitation Act (Public Act 210 of 2005) by allowing qualified retail food establishments to apply for property tax abatement for up to 10 years when expanding, improving, or opening in underserved areas. The act requires that qualifying retail stores must allocate 75% of their property (based on sales floor square footage) towards selling food and non-taxable grocery items.
PA 231 represents one of the more direct approaches taken by Michigan to address food insecurity across the state. However, it is difficult to assess the act’s impact since, as of 2011, the Michigan Department of Agriculture and Rural Development had not received any applications for tax abatement status and the abatements themselves may not provide enough support to cover the costs of opening new stores (Collier & Rabaut 2011).
Priority 4 – Support new or existing grocery stores
Collier, A. and Rabaut, C. (2011). Good Food Access: Michigan Good Food Work Group Report No. 2 of 5. East Lansing, MI: C.S. Mott Group for Sustainable Food Systems at Michigan State University. Retrieved on September 19, 2016 from LINK.