Michigan’s Prop 1 Business Personal Property Tax
Today I interviewed Tricia Kinley the Senior Director of Tax and Regulatory Policy at the Michigan's Chamber of Commerce concerning Michigan's Proposal 1 concerning businesses pay Personal Property Tax. The Proposal will be voted on in Michigan on August 5th.
Here is what you need to know about Prop 1:
- Prop 1 would repeal Michigan’s Personal Property Tax, which is levied on business equipment every year
- The Personal Property Tax, or PPT has been eliminated in all of our neighboring states. The concern is if Michigan retains the tax does it makes us less competitive for jobs and investment.
- The PPT is considered a double tax that discourages businesses to add the equipment needed to create jobs.
- If Prop 1 passes it will not result in a tax increase for individuals.
- The tax revenue lost to local communities will be replaced by expiring business tax credits and a new special assessment on businesses to recoup some of the tax revenue.
- The PPT tax would not be eliminated immediately it would begin in 2016 and be completed by 2023.
Proponents believe the new formula to replace Prop 1 would provide a more stable revenue base for local governments.
The Michigan Chamber of Commerce and many other groups want Proposal 1 to pass.
For more information on this please click on the following hotlink Michigan's Chamber of Commerce website or go to http://www.michamber.com/personal-property-tax-reform