Michigan Senate approves personal property tax reductions
By: Stephan Burklin
The eight-bill package, which still requires approval by the state House, initially faced pushback from groups worried about its impact on local revenues, among them, the Michigan Municipal League.
But when amendments were introduced to guarantee locals reimbursement for certain lost revenues, the league shifted its position to “neutral.”
In addition, a separate clause was inserted to ensure that, in the case of the state government’s failure to come up with replacement revenue, the eliminated taxes would be automatically re-implemented.
Revenues generated by all forms of the personal property tax total between $1.2 billion and $1.3 billion. The industrial and commercial portion accounts for about $450 million.
Senate Democrats accused the Republicans who passed the bill of stripping cities and schools of resources while benefiting big businesses.
Mike Johnston, vice president of the Michigan Manufacturers Association, told the Detroit Free Press that addressing Michigan’s personal property tax burden was critical to making the state more attractive for job creation.
“We view this as one of the essential pieces to reinventing Michigan,” he said.