The Challenge
Across the country, local governments had instituted a tax on sweetened beverages and food. Where this tax had been imposed, communities encountered numerous negative effects on consumers, employees, and businesses. At that point in time, no local governments in Michigan had enacted this type of tax. Industry stakeholders wanted to be proactive, however, and prevent local taxes from coming to Michigan in order to protect businesses and jobs -including the 6,000 people directly employed by the soft drink industry in Michigan.

The Solution
MLC coordinated the establishment of a coalition of stakeholders and, through its client Michigan Soft Drink Association, managed the behind-the-scenes legislative effort on the issue. Working with industry leadership, we identified key legislative supporters and allies across the state, and on both sides of the aisle. Through education of policymakers, we were able to reduce the stigma and negative connotations that may occur when the state preempts local units of government from creating a targeted tax. We accomplished this by showing the regressive nature and the negative impact on employment in other jurisdictions that had instituted this type of tax.

The Results
Through these combined efforts, a two bill package passed both chambers and was signed into law by Governor Snyder in just a few weeks’ time. Due to these efforts, the soft drink and food industries, retailers, and Michigan residents are now protected from local taxation.

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