personal property tax

State Legislature
6:39 am
Mon May 14, 2012

Lt. Gov Calley: Individual tax cut could be part of business tax rollback

Matthileo Flickr

An election year tax cut could be in the offing for individual filers in Michigan.

State House Republican leaders want to bring that into the discussions on phasing out a tax on industrial equipment.

Democrats in Lansing have hammered Republicans with the complaint that tax reforms enacted over the past year and a half have all been directed at helping businesses, while many of the exemptions and deductions enjoyed by individual filers have been scrapped.

Lieutenant Governor Brian Calley says a tax rollback for individuals and families has not yet been put on the table, but he and Governor Rick Snyder are open to the idea if that’s what the Legislature’s GOP leadership wants.

Calley says he hopes a debate over reducing the income tax or some other tax cut for individuals does not slow down a tax rollback that would encourage more investment in manufacturing in Michigan.

State Legislature
8:02 am
Fri May 11, 2012

Michigan Senate votes to phase out industrial tax

Cedar Bend Drive Flickr

The Michigan Senate has voted to phase out an industrial tax that’s a big revenue generator for school districts and local governments. Republicans amended their original plan to make sure much

of that money for local services and education would be replaced.

State Senate Majority Richardville says if money from the state falls below a certain level, communities could return to taxing industrial property.   

“It’s kind of a poison pill, as we call it in legislative jargon, where, if we don’t keep our promises than the whole program disappears, so it forces the state government to say we will keep you at the level we say it will,” Richardville says.

Richardville acknowledges there’s no way to guarantee schools and local governments won’t see some reductions. The money for the replacement would come from the sunset of other tax breaks.

Republicans say Michigan’s tax on business and industrial property is unique in the Midwest and drives investment elsewhere.

The Senate rejected efforts by Democrats to link the tax phase-out to job creation targets.

Investigative
7:47 am
Mon May 7, 2012

Cutting business equipment tax will mean cuts to local governments and higher real estate taxes

The Michigan legislature will soon vote on whether to shift more of the state’s tax burden from business to households.  Last year the legislature and the governor shifted about one-and-a-half billion dollars in tax payments from small and medium sized businesses to retirees and the working poor. This year there’s a proposal to cut another business tax. That proposed tax cut could mean higher real estate taxes for homeowners and revenue cuts to local governments.

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Political Roundup
5:17 pm
Thu May 3, 2012

Is eliminating the personal property tax a good thing?

The personal property tax is mostly a tax on business equipment, office furniture and manufacturing equipment.
IBM / The News Market

Every Thursday we take a look at Michigan politics with Susan Demas, political analyst for Michigan Information and Research Service, and Ken Sikkema, former Senate Majority Leader and Senior Policy Fellow at Public Sector Consultants.

There’s an eight-bill package working its way through the legislature right now aimed at eliminating the personal property tax. This sounds like something that would affect individuals but this is actually a business tax.

Sikkema says, “This is basically a tax on business equipment, computer, office furniture and manufacturing equipment. It’s generally acknowledged to be a bad tax because it taxes new business purchases and business growth and investment.”

Demas indicates that some cities receive up to 40% of their tax base from the personal property tax. However, not all cities would be affected in the same way. Some cities wouldn’t be affected at all.

“The municipalities have been looking for ways that they can get some of that revenue replaced, but so far they haven’t had a lot of takers because their solution is a constitutional amendment that would guarantee the same money, and nobody really wants to tie the legislature’s hands with that," she says.

Sikkema believes eliminating the tax is a good move for Michigan. He says, “Other states, particularly in the Midwest have already eliminated it, principality Ohio. Michigan and Indiana are the only ones in the Great Lakes region that I’m aware of who currently collect the personal property tax.”

But he adds, “It’s not without its down side…for some it is a major source of revenue and republicans are trying to address that with this promise to replace it in the future.”

Demas adds, “I do think we do need to pay attention to however many communities there are that really rely on this and could be pushed over the edge, because certainly it’s not health for our state to have our cities keep getting financial managers.”

Commentary
9:55 am
Wed April 18, 2012

What would a reform of the Personal Property Tax really mean?

If you had any doubts whether Michigan is still an important player on the national stage, consider this. Yesterday, embattled Wisconsin Governor Scott Walker, who is trying to survive a recall, appeared at a fundraiser in the Detroit suburb of Troy.

Today, President Obama will visit fundraisers of his own in West Bloomfield. These men are about as different politically as possible. Walker is seen by the nation's unions as Public Enemy Number One. Those unions will be firmly behind the President's re-election. Obama and Walker differ on virtually every domestic issue.

But they do have something in common. Neither man was scheduled to visit the desolation that is Detroit.

That city's more conservative paper, The Detroit News, startled me today by suggesting that the President's limousine take a detour through the city, perhaps, "past the heaps of rubble that were once businesses on Harper near City Airport, and into the blocks surrounding Denby High School off East Outer Drive, where there are more abandoned homes than occupied ones."

The newspaper suggested that Detroit is every bit as bad off as New Orleans was in the wake of the devastation caused by Hurricane Katrina. But there have been no massive federal programs to rebuild Detroit. This nation has spent billions of dollars on the war in Iraq over the last decade, a war that seems to have won us nothing. Can you imagine the positive effect a small fraction of that money would have had on Detroit? Or Flint, or Pontiac, or any number of the rest of Michigan's crumbling cities large and small?

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Politics
7:20 am
Wed April 18, 2012

The Week in Michigan Politics

Ifmuth Flickr

Every Wednesday, we take a look at the week's state politics with Michigan Radio's Political Analyst Jack Lessenberry. This morning: state lawmakers are back in Lansing after a two-week spring break, an overhaul of the state's Personal Property Tax could be coming, and President Obama is set to spend this evening fundraising in Southeast Michigan.

Politics
2:03 pm
Tue January 17, 2012

Top business issues facing Michigan legislature in 2012 (If the election doesn't get in the way)

Statue of Gov. Austin Blair stands in front of the state capitol dome in Lansing
(photo by Steve Carmody/Michigan Radio)

The Michigan Chamber of Commerce hopes the legislature will pass several pro-business laws before election year politics starts throwing obstacles in the way this year.   

Rich Studley is the president of the Michigan Chamber of Commerce. He said there’s probably only a small window before this year’s elections start affecting the ability of the legislature and the governor to get any work done.   

"We believe that between now and the May filing deadline …between now and the end of May and the start of June…there are five months that the legislature and the governor can still work on key issues," said Studley.    

The chamber is pushing for the elimination of Michigan’s ‘personal property tax’ and would like to streamline environmental and other regulations.    

The state’s largest business industry group is also encouraging the governor to move ahead with plans to build a new bridge between Detroit and Windsor, even  if he has to do it without the legislature’s approval.  

One major issue not on the state Chamber of Commerce’s agenda is ‘Right to Work’. Chamber officials say their members have not reached a consensus on the issue.  More than 20 states prohibit agreements between employers and unions that require workers to join the union or pay union dues.

Politics
1:01 am
Thu November 3, 2011

Local elections take place next week as fewer tax dollars flow to Michigan's cities and towns

City hall in Jackson, Michigan
(photo by Steve Carmody/Michigan Radio)

Jackson, like other Michigan cities, will hold an election next week. And like in other cities, those elected will face the reality of how they will choose to spend a declining amount of tax dollars.  

Both candidates for mayor of Jackson are realtors. And both bring a ‘realtor’s optimism’ when they talk about their city’s future. 

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Politics
5:17 pm
Wed September 21, 2011

Richardville talks about fall agenda in Michigan Senate

Lester Graham Michigan Radio

State Senate Republicans say they want to focus on proposals this fall that will help businesses create jobs.

Senate Majority Leader Randy Richardville says eliminating the Michigan Business Tax on small businesses was a good start. He says now it’s time to get rid of the Personal Property Tax that businesses pay.

“The government itself does not create jobs, all we can do is better the environment. And that’s what we’re attempting to do with the legislation we’ve put on the table so far, and what we’ll continue this fall.”

Richardville says the Senate will also take up measures this fall to reform education and regulate the medical marijuana law.

The law was approved by a wide margin of voters in 2008.

Senate Majority Leader Randy Richardville says the law is too vague.

“I have a real concern about those that would abuse this law and that somehow more would illegal marijuana would end up on the street, and eventually find its way into our school yards. That’s my big concern here.”

Senate Republicans also plans to take up legislation to eliminate the tax on businesses and factory equipment. Education reforms, and a ban on a controversial abortion procedure are also at the top of the party’s fall agenda.

Investigative
6:00 am
Mon September 19, 2011

A city 'reinventing' itself with less money from the state

The Michigan legislature and the governor are working to make Michigan a more business-friendly state by changing the tax structure.  But, while businesses are benefiting from already passed tax reductions --and anticipate more--  the change is costing communities. 

I went to one city to see how it was handling those changes.

When I visited, it was a beautiful day in downtown Monroe.  The city is situated on the River Raisin in the southeast corner of the state, right on Lake Erie.  It’s just 19 miles north of Toledo, Ohio.

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Investigative
6:00 am
Mon September 12, 2011

Another tax break for Michigan businesses?

Large corporations such as automakers and their suppliers say they need tax relief at the state level.
Lester Graham Michigan Radio

Michigan lawmakers are considering eliminating the Personal Property Tax.  That’s a tax businesses pay on equipment.  The money goes directly to local units of government.  Businesses say it’s a complicated tax that punishes them for investing in equipment.  Cities, townships, counties and schools say if the tax is eliminated, that revenue has to be replaced. 

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