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Michigan voters approve Prop 1

Steve Carmody
/
Michigan Radio

Michigan voters have approved a ballot measure to end a state tax on manufacturing and small business equipment.

Proposal 1 will reimburse local governments for their lost personal property tax revenue by sharing a portion of the state's use tax.

The personal property tax is paid by businesses and manufacturers and is based on the value of their machinery, office furniture and equipment. Some Michigan communities rely on the tax revenues to pay for basic services.

State lawmakers already have voted to repeal the tax on small businesses and manufacturers, but the issue required voter approval.

If voters hadn't approved the proposal, the laws passed by the Legislature would have been halted.

The measure had no organized opposition. It was the only statewide question during Tuesday's election.

Vincent Duffy has been news director at Michigan Public since May 2007.
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