Advocacy News – March 9, 2021
Earlier today Governor Whitmer vetoed key business relief provisions that would have gone to businesses in most need of help during these unprecedented times. The Michigan Chamber is deeply disappointed and perplexed that businesses forced to close and/or operate under severe capacity restrictions the longest are being denied much needed relief.
On a bipartisan vote the legislature approved the following relief provisions that Governor Whitmer vetoed:
- Direct Payments from the Department of Treasury
If a business qualifies, payments will be available using a formula based on 2020 property taxes or lease payments. Depending on how much income a business lost due to the pandemic will qualify them for a payment equal to or proportional to the amount of property taxes paid in 2020 or 17% or rent payments made in the same year.
$300 million was vetoed for this program.
- Deposit to the Unemployment Trust Fund
To ensure businesses do not get penalized with increased unemployment taxes for the massive amount of fraudulent unemployment benefits that were paid out, a deposit will be made to the Unemployment Trust Fund.
$150 million was vetoed for this purpose.
- Liquor License Relief
For businesses with on-premise liquor licenses a fund will be established to help cover liquor license costs.
$16.5 million was vetoed for this purpose.
- Food Service Establishment License Relief
In order to help cover fees associated with food service licenses that were not able to be utilized during the pandemic, a fund has been created to help businesses cover this expense.
$22 million was vetoed for this purpose.
- License Inspection Relief
For businesses forced to shut down that were still subject to inspection fees, the legislature created a fund to help cover these fees.
$11.5 million was vetoed for this purpose.
- Unemployment Insurance Relief
Qualifying businesses will be eligible for unemployment insurance relief through the creation of a new fund. The maximum amount of relief will be equal to 50% of the amount of unemployment insurance taxes paid in the four most recent quarters and could be used only for working capital to support payroll, rent, mortgage, utilities, and reopening costs.
$55 million was vetoed for this purpose.