Michigan 2014 Primary: Proposal 1 passes, personal property tax phase out will proceed By Jonathan Oosting | joosting@mlive LANSING, MI — Michigan primary voters on Tuesday gave final approval to a plan to phase out personal property taxes that small businesses pay on office equipment and manufacturers pay on industrial equipment. The Associated Press declared victory for Proposal 1 shortly after 10 p.m. With 38 percent of precincts reporting, the statewide measure led 69-31 percent. Proposal 1 authorizes the creation of an authority to distribute existing use tax revenue to local governments who currently rely on personal property tax collections to provide services, including police and fire. “Michigan voters are intuitively smart when it comes to voting,” Howard Edelson, campaign manager of the Michigan Citizens for Strong and Safe Communities ballot committee, said in a statement. “They understood that reforming the Personal Property Tax (PPT) was a win-win for their communities and Michigan businesses. “ The proposal was supported by a broad and bipartisan coalition of business leaders, state lawmakers and local government officials, but several analysts predicted a close call on Tuesday night due to confusing ballot language and a tendency for voters to reject complicated measures. Manufacturers poised to benefit from a 10-year personal property tax phase out, including Detroit automakers, contributed more than $8 million to a ballot committee that promoted Proposal 1. Small businesses will also see significant long-term savings. Prop 1 supporters argued that personal property taxes discourage business growth and investment, making Michigan less competitive than neighboring states that already ditched similar taxes. Many local government leaders backed the proposal because it promised a stable source of replacement revenue.
Posted on: Wed, 06 Aug 2014 03:23:47 +0000
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