Finance

Michigan Faces a Property Tax Decision on Statewide Ballot

by | May 23, 2014
 

By Kathleen Gray

Michigan voters will see one statewide ballot issue on the Aug. 5 primary ballot: Proposal 1, which will officially get rid of the personal property tax and guarantee that cities and towns will have a source of revenue that will replace the tax.

The proposal confirms and supports the Legislature's actions to repeal the personal property tax and replace the revenues lost to communities with a portion of the state's 6% use tax.

The personal property tax is paid by businesses and manufacturers and is based on the equipment, including office furniture, that a business has. Many communities, with large business presence rely heavily on the tax. Other communities, don't receive any revenues from the PPT.

It's a tax that's hated by business and has become a bureaucratic nightmare for communities. The Legislature passed the bills eliminating the tax last year. Subsequent legislation to fix the revenue shortfall for communities was passed earlier this year.

But the whole issue still needs voter approval. It will be the only statewide proposal voters will face on the August primary ballot. The Board of Canvassers voted on Thursday to designate the issue as Proposal 1 on the ballot.

(c)2014 the Detroit Free Press

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