Deal assures Michigan cities won't be hurt by business tax cut

Feb 23, 2014

LANSING – Michigan lawmakers this week will propose a deal to guarantee that local governments lose little to no revenue from a planned phase-out of taxes on industrial machinery and small businesses' equipment.

The business tax cuts were enacted by Gov. Rick Snyder and legislators at the end of 2012. But they will be halted if a statewide vote fails in August.

An agreement reached among Snyder's administration, business interests and local officials would make sure municipalities opposing a loss in revenue are mostly kept whole.

It would all but ensure that the ballot proposal faces no organized opposition.

The business community has complained for years that Michigan's tax applied to machines, equipment and other items discourages business investment, is a compliance headache and is unique in the Great Lakes region.