Regulatory Rundown: June/July 2024 Michigan Retailer

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EGLE proposes new hazardous waste rules for electronic nicotine delivery systems (ENDS)

The Department of Environment, Great Lakes, and Energy (EGLE) recently issued a rulemaking request on hazardous waste that updates hazardous waste rules on pharmaceutical hazardous waste to follow recent EPA revisions on the safe management of recalled airbags, pharmaceutical wastes, and the modernization of the test methodology for ignitable liquids. The EGLE’s proposed changes include new rules on “hazardous waste electronic nicotine delivery system or ENDS” that impact healthcare facilities, ENDS retailers, and reverse distributors. For more information, visit the QR code below and see Rules 824-833 found on pages 291-308 of the draft rules document available on LARA’s rulemaking page. If you have questions or comments on these rules, please share with MRA’s Amy Drumm at adrumm@retailers.com

Administrative Rulemaking System Request for Rulemaking Hazardous Waste Management: https://ars.apps.lara.state.mi.us/Transaction/RFRTransaction?TransactionID=1432

EV owners: charging habits and shopping trends

A recent Numerator survey on Electric Vehicles (EVs) evaluated the shopping and charging habits of the 3.5% of U.S. households that report owning an electric vehicle. Compared to the average vehicle owner, EV owners are younger, more diverse, and higher-income: 42% are Gen Z’ers or Millennials, 44% are Black, Hispanic or Asian, and another 44% come from high-income households.

Electric Vehicle ownership is most highly concentrated in the Western United States. Nearly a third of EV owners (30%) reside in the Pacific U.S., with an additional 8% in the Mountain region. Ownership also varies significantly by urbanicity, with nearly half of EV owners (46%) residing in urban settings.

Most EV owners charge their vehicles at home, but when deciding where to charge their EV on the go, owners often select the nearest charging location available (55%), while others select free or discounted charging options (42%), charging speed (41%), or proximity to other amenities like stores and restaurants (32%). Nearly two-thirds (61%) of EV owners say they’re somewhat or significantly more likely to shop somewhere with charging stations, while a quarter (27%) say charging station availability doesn’t typically influence their shopping location decisions.

Overall, EV owners spend 6% less in the gas and convenience channel compared to the average vehicle owner, but this dip is entirely driven by suburban EV owners, who spend 18% less than other suburban drivers. Urban and rural EV owners, on the other hand, spend 3% and 13% more at gas and convenience stores than their non-electric counterparts. For their grocery habits, EV owners are more likely to shop at retailers with a greater selection of natural/organic products. 

Beverage market sales increase, volume declines

A report released by the Beverage Marketing Corporation in May analyzed the U.S. beverage market in 2023. Although retail sales of beverages increased, the overall volume decreased compared to the previous year. This was partly due to high prices caused by inflation, which likely discouraged some consumers from purchasing.

In 2023, energy drinks stood out with a notable increase in both volume and retail sales. They experienced a solid 5.7% volume growth and a double-digit increase in retail sales. However, sports drinks saw faster retail sales growth than the overall beverage market, but their volume declined.

Carbonated soft drinks had sporadic growth in 2021 and 2022, but experienced another volume decrease in 2023. Bottled water, the largest beverage category by volume, saw slight growth in 2023, although its retail sales increased at a slightly slower rate than the overall beverage market.

Other segments like fruit beverages, ready-to-drink (RTD) coffee and tea, and value-added water saw declines in volume in 2023, despite retail sales increasing. However, their sales growth was slower than that of the overall refreshment beverage category.

Learn more here.

Deadlines and Reminders

July-Aug. 2024

Aug. 6 – Primary Election (Watch for MRA’s Friends of Retail announcement in mid-June)

Monthly Reminders:

Sales & Use Tax – Monthly & EFT – On or before the 20th day of the following month.

Withholding Tax – Monthly & EFT – On or before the 20th day of the following month.

Retailer’s Prepaid Wireless 911 Surcharge – Within 30 days of the close of each month. Receipt of a complete Form 5012 is required regardless of payment method.

 Quarterly Reminders:

Corporate Income Tax (CIT) Estimated Returns and Payments (Jan. 15, April 15, July 15, Oct. 15).

Sales & Use Tax – Quarterly & EFT – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).

Withholding Tax – Quarterly – On or before the 20th day of the month following the quarter (Jan. 20, April 20, July 20, Oct. 20).