Michigan Grocery Store Tax Incentive

Public Act 231 is designed to use tax incentives to encourage and improve access to fresh foods and grocery store development. According to information released on September 3, 2009 by the Michigan Department of Agriculture (MDA) and the department of Treasury, PA 231 could generate $852 million in sales and create 3,020 jobs in a state with high unemployment.

According to the news release issued by the MDA, the program would allow “certain” retail food stores that “expand, improve, or open in underserved areas” to request those improvements not be taxed for up to ten years. Undeserved areas can be rural or urban. The law requires the MDA to identify such areas “using three criteria for Census Tracts in the definition: (1) low and moderate income, (2) below average density of grocery stores and (3) travel limitations to grocery stores.” According to State Treasurer Robert J. Kleine, ‘“The program serves the dual purpose of creating jobs and broadening access to healthy food items families need.”’

MDA Director Don Koivisto stated in the news release that ‘"MDA is excited to be helping provide Michigan's underserved citizens with increased accessibility to healthy fresh food choices . . . Not only is this an economic development tool, it also offers the means to provide fresh food options for those whose previous grocery experiences were limited to convenience stores."’ According to an MDA and U.S. Department of Agriculture (USDA) analysis, 54 percent of the Michigan census tracts meet the “undeserved areas” definition in the statute.

Michigan Food Policy Council executive director Kristen Simmons stated, ‘"Grocery store development in underserved areas has the potential to create a positive ripple effect in Michigan, including jobs and community economic development, while combating one potential factor in the diet-related disease rates we see today[.]"’ PA 231 was supported by the grocery industry, food and health experts, and local economic development organizations.

To read the MDA news release click here.

Posted: 09/04/09