Industrial tax roll back headed to Michigan Senate

A plan to roll back taxes...that some criticize, but others rely on...is expected to clear a major hurdle this week. A legislative committee is expected to wrap up hearings on the plan, and send it to the floor of the state Senate.

Maufacturers say there would be more hiring and investment in factories if not for Michigan’s unique tax on industrial equipment. The Senate plan would phase out the tax – starting next year -- by 2022.

But the Republican proposal would not replace all the revenue lost to local governments that rely on the tax as a source of funding for services. Communities with a big industrial presence would be hit the hardest.

They say with no guarantee that all the revenue will be replaced, they could be forced to cut services more than they have already, or increase other taxes to make up the difference.