Michigan Senate passes personal property tax reform
LANSING— Legislation that would reduce the personal property tax for Michigan businesses was approved by the Michigan Senate Thursday, said sponsor state Sen. Dave Robertson.
“This package of legislation is a long term commitment toward job creation in Michigan,” said Robertson R-Grand Blanc Township. “Michigan has lost nearly half of its manufacturing jobs since 2010 and it is time to help our current manufactures grow and to attract new business to Michigan.”
Reforming Michigan’s personal property tax structure would create between 6,000 and 15,000 jobs, according to a study released by Anderson Economic Group.
This eight-bill package would alter the personal property tax in the following ways:
• Effective Dec. 31, 2012 any commercial or industrial business that has personal property valued at $40,000 or less will not pay taxes and will not file a return. This would eliminate 75-80 percent of returns that currently need to be filed.
• Effective Dec. 31, 2015 all eligible industrial personal property bought after Dec. 31, 2011 will not be taxable.
• Effective Dec. 31, 2015 any eligible personal property that is 10 years old will no longer be taxed. This will continue each year until all property is tax exempt.
Robertson sponsored Senate Bills 1066 and 1068 and cosponsored the rest of the package.
These reforms stimulate business growth while protecting homeowners from property tax increases. All millages for bonded debt are 100 percent protected from declining revenue along with police, fire, senior and other similar millages.
“Over the past sixteen months, the Legislature has worked tirelessly in order create jobs and get the economy going again,” Robertson said. “Personal property tax is yet another common sense step in the right direction toward Michigan becoming a leader of how a state should be run.
SBs 1065-1072 now advance to the Michigan House of Representatives.