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House considers revoking gun industry liability defenses, ‘dark store’ tax loophole

LANSING — Michigan lawmakers continued their end-of-year legislative sprint, taking action on dozens of bills in the final days of Lansing’s Democratic majority.

A package of bills passed by a House committee would remove liability protections currently enjoyed by the firearm industry.

“This bill would allow victims of gun violence and impacted communities to hold the gun industry accountable for irresponsible practices that have for years created dangerous conditions in the state of Michigan,” said Rep. Ranjeev Puri, D-Canton.

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Supporters say the proposals — House Bills 6183-6185 — would hold gun manufacturers and dealers to higher safety standards should they act recklessly.

Eight other states and DC have passed similar measures. The attorney general, local prosecutors and Michigan residents would be able to bring civil action against gun industry members they believe have acted irresponsibly.

“Responsible gun industry actors have nothing to fear from this law, but gun industry members who irresponsibly negligently or recklessly manufacture sale or market firearms should be held accountable,” said Kelly Sampson, senior policy counsel for Brady.

Opponents say that the policies would unlawfully restrict gun sales in Michigan and place undue burdens on consumers.

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“if these bills pass, the state would be placing its thumb on the scale, potentially halting the firearm industry from functioning in the state, and stripping Michigan citizens from being able to avail themselves and their second amendment rights,” said Nick Buggia, state director of the NRA’s legal arm.

The bills advanced to the House floor and could see votes in the next two weeks.

A House committee also moved forward a package to close the so-called ‘dark store’ tax loophole, a policy advocates say has cost municipal governments millions of dollars over the years.

Michigan’s tax tribunal allows retailers to argue that their store’s value should be determined solely by the value of that property, not the business within it, leading to new constructions being significantly undervalued.

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“Every single school district in the state has been negatively impacted by this loophole, because a portion of our property taxes go into the whole entire school aid fund,” said Rep. Julie Brixie, D-Okemos.

Members of Michigan’s business community expressed opposition to the bills, saying they would hinder the attraction of new companies to the state.

“While these bills ostensibly focus on big box retail, the reality is it covers all commercial and all industrial properties in this state, and constrains their ability to and their right to appeal their property taxes,” said Mike Johnston of the Michigan Manufacturers Association. “Which makes Michigan very unattractive to any company that would want to come to the state — to basically say you can come here, but you can’t appeal your property taxes.”

Those bills — House Bills 5865-5868 — did not advance to the House floor, but could in the coming days.

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