Tagged: personal property tax

A plan to phase out Michigan’s Personal Property Tax—the tax on business equipment—is being rushed through the Michigan Legislature.

There are unanswered questions and not much time to get answers.

Businesses want to end the tax on equipment. The problem is many local governments rely heavily on that tax.

When a proposal was announced last week, it appeared phasing out the tax over ten years and a statewide vote to replace it with the state’s current use-tax revenue might work to replace the local governments’ lost revenues.

Snyder wants to phase out property tax

Governor Rick Snyder and Lieutenant Governor Brian Calley want the Legislature to enact a major tax overhaul before the end of the year. It would phase out Michigan’s tax on business and industrial equipment.

As the Detroit Free Press reports,

"The state's plan is to get rid of the tax on business equipment, furniture and supplies that brought in more than $1.2 billion in 2010, the most recent figures available, over the next 10 years. . . The phase out of the tax would begin in 2014 for small businesses and in 2016 for larger manufacturers. There would be no reimbursement to communities where personal property tax revenues are less than 2.5% of their total taxable value."

Southeast Michigan transit authority passes in Senate

Legislation to create a regional transit authority for southeast Michigan won approval from the state Senate Tuesday. As the Detroit Free Press reports,

"The goal, backed strongly by Gov. Rick Snyder and Detroit Mayor Dave Bing, is a network of speedy, modern buses operated independently of Detroit Department of Transportation and the Suburban Mobility Authority for Regional Transit. The plan is to give the transit authority the power to coordinate routes between the rapid-transit system and the existing city and suburban bus lines to eliminate duplication of routes. DDOT and SMART would instead feed into the faster bus lines, freeing up both to provide better, more efficient local service."

Ex-aids to former Detroit Congressman enter pleas in petition fraud

"A former top aide to a Detroit-area congressman has pleaded no contest to forgery in an election scandal involving bogus petition signatures. Don Yowchuang was deputy district director to then-U.S. Rep. Thaddeus McCotter, a Republican from Livonia. Yowchuang admits making copies of petition signatures to try to qualify McCotter for the August primary election. Separately, McCotter former district director Paul Seewald pleaded guilty to a misdemeanor, falsely signing a nominating petition as a circulator. McCotter didn't make the ballot and quit Congress in July," the AP reports.

Detroit deadlock continues

Detroit needs cash if it's going to make payroll in December. $30 million waits from the state.

But Mayor Bing and the Detroit City Council are locked in a battle over a law firm contract. A special council meeting was supposed to be held yesterday to resolve the problem, but the the city's legal department canceled the meeting.

Even it the meeting had been held, Matt Helms of the Detroit Free Press reports, Bing would not have had the votes to end the deadlock.

Had a vote been taken, it likely would not have gone Bing's way. The sole council member to vote to approve it, President Pro Tem Gary Brown, said Monday that the Bing administration "doesn't have the votes" to reverse course.

And the city's financial crisis looms.

Legislature aims to cut a source of revenue for some cities

There have been a lot of proposals floated in this lame-duck session of the Michigan legislature, but one plan the Gov. hopes to pass by the end of the year is a phase out of the "personal property tax."

That's a tax that many manufacturers pay to local governments on equipment they own. Local governments that have a big manufacturing base have said eliminating the tax would hurt their bottom line.

MLive's Dave Eggert reports Lt. Gov. Brian Calley plans to unveil a new plan to cut the tax today:

Sources who have been briefed on the proposal said key changes include partially replacing the revenue with a portion of the state's tax on out-of-state retail transactions and allowing local governments to assess a special tax to recoup money for police, fire and ambulance services.

Troy breaks ground on new transit center

The city of Troy is breaking ground on a new transit center today. The project was opposed by Troy's recently recalled Mayor, Janice Daniels, because the funding for the project is comging from the federal government. The transit center will cost $6.3 million to build and will house facilities for bus, train, and car rental services. The transit center will replace Birmingham's Amtrak stop. It's expected to open the summer of 2013.

Proposed changes to K-12 education

There's a proposed bill being drafted that could make some major changes to K-12 education in Michigan. As the Detroit Free Press reports, highlights of the bill include, "[the ability for] students to choose school districts, make greater use of online learning and earn financial incentives of $2,500 per semester for completing high school early."

Charter school enrollment rises in Michigan

"Charter schools are becoming a more common choice for Michigan students. A new report finds five Michigan cities are now among the top 20 in the nation for the percentage students in charter schools. Detroit is No. 2 -- with 41 percent of its students enrolled in charter schools. Flint ranks fourth and Grand Rapids is ninth. Lansing and Traverse City are 19th and 20th,' Rina Miller reports.

Local government leaders want Michigan's personal property tax changed

"A new poll shows local government leaders in Michigan are leery of proposals to do away with Michigan’s personal property tax. Republican state lawmakers want to repeal or greatly change the tax, possibly before the end of this year. Businesses complain the personal property tax is cumbersome and discourages investment.  Legislation repealing the personal property tax already passed in the state Senate, but the legislation has sat in state House since last Spring," Steve Carmody reports.

A new poll shows local government leaders are concerned about proposals to repeal or greatly change Michigan’s personal property tax.

Michigan’s personal property tax focuses on assets like furniture, equipment, computers and other temporary investments.

Businesses have complained for years about the personal property tax.  Critics complain the tax is an obstacle to reinvestment and attracting new investment to Michigan

But the tax generates hundreds of millions of dollars for local governments.