State Senate approves a plan to phase out tax on industrial and business equipment
The state’s tax on industrial and business equipment is a step closer to being phased out. State lawmakers Thursday sent the measure to Governor Rick Snyder’s desk.
The personal property tax repeal was one of Governor Snyder and Republican state leaders’ top priorities for the lame duck session.
They say it discourages investment in the state and kills jobs.
Supporters of the plan say it will reimburse local communities for most or all of the revenue they would lose for services like schools, police, and fire.
Ari Adler is a spokesperson for state House Speaker Jase Bolger (R-Marshall).
“Many communities rely on the revenue that comes from this tax, and we did not want to leave them in a lurch,” Adler said.
Opponents like state Rep. Vicki Barnett (D-Farmington Hills) say the bills do not do enough to make up for those losses.
“It’s clear locals are going to lose money. Schools are going to lose money. The question is, just how much? And it could be anywhere from $250 million to – what I believe, when fully implemented – closer to $800 million, if there’s no replacement,” Barnett said.
Michigan voters will be asked to approve the reimbursement plan in August of 2014. If it’s rejected, the state will stop phasing out the tax.