Let's Keep Michigan Growing!

What is the Personal Property Tax?

The video at the left tells the story.     For years, Michigan's personal property tax has been a barrier to new investment. Job providers are taxed-repeatedly, each year-on every piece of machinery, furniture, or technology they add in Michigan. If an item is 10 years old, it's been taxed 10 times, and will continue to be taxed every year unless voters act to restore common sense to the state's laws.

The reasons to do away with the Personal Property Tax don't end there. Michigan communities use money collected  from the personal property tax, but they don't like it either. The tax is really hard to administer, and the dollars fluctuate so much that local leaders can't really count on them when they build their budgets. They want a more stable funding structure too, and that is why they are major supporters of Proposal 1.

 

So what, specifically, does Proposal 1 do? 

• Repeals the personal property tax IMMEDIATELY for Michigan's small businesses.
• Phases the tax out gradually over the next decade for large manufacturers.
• Replaces lost revenue with a portion of the state's existing use tax, imposing a special assessment for manufacturers, and by ending some special business tax credits. 

These changes add up to more stable funding for communities, a fairer tax structure that favors new investment in Michigan, and no new taxes for state residents.

 

BLM's view: Proposal 1 is good for Michigan, no matter how you slice it.  Visit www.StrongandSafeCommunities.com, and be sure to vote August 5.

Forum: Vote 'yes' on Prop 1 on Aug. 5

Traverse City Record Eagle | July 13, 2014

The range and depth of support for Proposal 1 on the Aug. 5 statewide ballot is impressive. Rarely does a statewide ballot proposal have such broad support from across Michigan - north to south, east to west - across political divides, and across a wide variety of organizations, from business to labor to local government to public safety. Proposal 1 does not raise taxes and it does not involve a constitutional amendment. Read more. . .

Michigan Citizens for Strong & Safe Communities: Proposal 1 puts Michigan on the right track

Battle Creek Enquirer | July 11, 2014

Michigan Senate Democratic Leader Gretchen Whitmer and Macomb County executive Mark Hackel announced their support for Proposal 1 on the Aug. 5 statewide ballot, joining Oakland County executive Brooks Patterson in the growing chorus of Proposal 1 supporters. Whitmer, who was one of only two state senators to vote against the issue earlier this spring, said the concerns she raised in the Senate about the potential fiscal impacts on local communities have been addressed. Read more. . .

Calley calls on businesses to speak out for Proposal 1 

Livingston Daily Press & Argus | July 8, 2014

Proposal 1 will help Michigan businesses and municipalities, Lt. Gov. Brian Calley said Monday, but both groups must work to spread the word.
"Even without organized opposition, getting people to say yes to anything is hard," Calley told his audience during a luncheon at Mt. Brighton in Genoa Township. Read more. . .

Resolution supporting elimination of Personal Property Tax OK'd by Kalamazoo City Commission

MLIVE | July 6, 2014

The Kalamazoo City Commission approved a resolution Monday urging voters to support eliminating Michigan's Personal Property Tax. Commissioners said the PPT, an annual fee businesses must pay to own property such as furniture, computers and machinery, is burdensome to local businesses and discourages investment in Michigan because nearby states such as Ohio and Indiana do not have the tax. Read more. . .

Our View: Proposal 1 is a good deal for everyone in Michigan 

Holland Sentinel | July 6, 2014

At the heart of the matter is the personal property tax, an inaccurately named levy that has been assessed on the physical assets of Michigan businesses since 1893. Only one other state in the Great Lakes region imposes such a tax, and Indiana does so at a much lower rate than Michigan. The tax discourages capital investment and puts Michigan at a competitive disadvantage against neighboring states when it comes to retaining and recruiting businesses, especially manufacturers that use expensive machinery. Besides the sales tax they pay when purchasing something, businesses in Michigan must also pay the personal property tax, year after year, no matter how old the equipment is. Read more. . .

Personal Property Tax Plan Would Cut Taxes By $500 Million

Michigan Capitol Confidential  | July 3, 2014

On Aug. 5, most voters will be focused on the primary elections for candidates. But there is another important issue on the ballot that day.
Voters will be asked to approve or reject legislation reforming Michigan's personal property tax. This is a tax businesses pay annually on the value of their equipment. A "yes" vote would eliminate this cost for small businesses and phase it out for manufacturing companies. Read more. . .

Howell chamber endorses Proposal 1 

Livingston Daily Press & Argus | June 27, 2014

The Howell Area Chamber of Commerce Board of Directors has endorsed Michigan's Proposal 1, on the primary ballot this August.

Proposal 1 would eliminate the long-controversial personal property tax that penalizes businesses willing to expand and invest in new equipment, the chamber board stated in a news release regarding its June 24 endorsement.

Although referred to as the "personal property tax," it is a tax on the equipment businesses use to do their work.  

Frankenmuth City Council endorses Michigan's Proposal 1 

MLIVE | June 27, 2014

"A yes vote solves two major problems without raising taxes," said Frankenmuth Mayor Gary Rupprecht in a statement.

"First, the proposal keeps in place the Michigan Legislature's bipartisan work to end the antiquated, unfair double tax on personal property, which most neighboring states don't have. And second, the proposal creates a stable, reliable funding system for Michigan communities to pay for police, fire, ambulances, jails, schools, libraries, roads and other important services."

Grand Rapids mayor, Chamber president urge 'yes' vote on Proposal 1 

MLIVE | June 25, 2014

Michigan needs vibrant communities and strong local businesses, which is why the Grand Rapids Area Chamber of Commerce and the Mayor of the City of Grand Rapids stand united in support of Proposal 1. Read more. . .

Local support is strong in Saline for state Proposal 1 

Saline Reporter | June 25, 2014

Only one statewide proposal will be on Aug. 5 general election ballots and it would eliminate the personal property tax, making it an important issue for commercial and industrial businesses. Supporters say it will modernize the tax system and help Michigan business compete. Read more. . .  

Michigan Sheriff's Association backs Proposal 1 

Midland Daily News | June 25, 2014

"A yes vote solves two major problems without raising taxes," said Michigan Sheriffs' Association President Leo Mioduszewski. "First, the proposal keeps in place the Michigan Legislature's bipartisan work to end the antiquated, unfair double tax on personal property, which most neighboring states don't have. And second, the proposal creates a stable, reliable funding system for Michigan communities to pay for police, fire, ambulances, jails, schools, libraries, roads and other important services.   

Dan Gilmartin: Time for voters to decide taxes

Battle Creek Enquirer | June 24, 2014

MI voters can solve two major problems without a tax increase by voting "yes" Aug. 5 on Proposal 1.  Voting yes will eliminate our state's antiquated Personal Property Tax (PPT), a double tax on our local small businesses that most neighboring states don't charge. MI small businesses pay sales tax on equipment when they buy, and then pay the PPT every year they own that equipment - sometimes for decades. Read more. . .

'Yes' on Prop 1 would ax unfair, unreliable tax 

Crain's Detroit Business | June 22, 2014

If this proposal fails, local small businesses and manufacturers would go back to paying the unfair double tax on equipment, which punishes local businesses and threatens Michigan's economic recovery. If this proposal fails, community funding for police, fire, ambulances, schools, jails, libraries, roads and other important services would be forced to continue to rely on a source of revenue we know to be unstable and unreliable. Read more. . .

State businesses push for Proposal 1 

Observer & Eccentric | June 21, 2014

Proposal 1 would eliminate Michigan's personal property tax if voters approve it in the Aug. 5 primary election. Despite how it is referred to, it is not a tax on homeowners. The tax is levied only on MI businesses' equipment. It's also a tax that has been criticized in some quarters for hurting existing businesses' ability to expand and the state's ability to attract new businesses and new jobs.  

Michigan AARP supports ballot proposal to eliminate state personal property tax  

WKZO | June 17, 2014

On August fifth, voters in Michigan will get to decide on Proposal One, which would scrap the state's personal property tax, and at least one big name group is supporting it. Mark Hornbeck, with the Michigan AARP, says that the personal property tax is a tax that businesses pay on new equipment purchases. The money goes to local governments, but he says the AARP is calling for the repeal of the tax because, under Proposal One, the money that local communities would lose will still get paid to them by the state. Read more. . .

Exercise your civic duty and vote on crucial ballot issue 

MLIVE | June 16, 2014 

In a remarkable display of bipartisanship, lawmakers passed legislation this year to phase out the tax and replace revenue lost to local governments with a portion of the state's 6 percent use tax. The state would recoup most of this money from expiring business tax credits. Manufacturers also would pay an "essential services assessment" to support police, fire and other services in their communities.

The plan has wide support from business, government and education groups.   Read more. . . 

Proposal 1 helps Mich. jobs climate  

Livingston Daily Press & Argus | June 16, 2014 

A proposal that helps Michigan businesses without hurting local governments or schools is a good deal for everyone, including homeowners.  That's why voters should support Proposal 1 during the August 5 state primary. 

Read more. . .

Statewide ballot proposal would end personal property taxes

The Oakland Press | June 12, 2014 

For Jerry Grubb and his wife Rhonda, who operate Wee Discover Daycare and Learning Center in Waterford Township, voter approval of the only statewide proposal on the Aug. 5 ballot means not having to pay taxes on their business property forever. Proposal 1 doesn't actually repeal the personal property tax; the Michigan Legislature has already acted to do that and replace it with an essential services fee on large manufacturers to support local government services. But voters have to approve the legislative actions in order for them to take effect. Read more. . .

Proposal 1 merits state voters' OK

Port Huron Times Herald | June 11, 2014 

One of Michigan's more difficult tax-relief reforms has been reached without inflicting the pain that was expected. The phaseout of the personal property tax gives businesses needed relief without harming local governments that depended on the revenue the tax generated. Proposal 1, the Aug. 5 ballot proposal, asking Michigan voters to sanction this important change should be approved.  Read more. . .

Better for business 

The Michigan Daily | June 11, 2014 

Eliminating the personal property tax will help attract businesses to Michigan. The personal property tax ensures businesses must pay taxes on any business or office supplies. This ranges from computers to desks to land. Since businesses already pay the six percent Michigan sales tax on items when they're originally purchased, businesses are essentially being double-taxed for items. Businesses will oftentimes take this cost into consideration when deciding where to start a company. Because Michigan is the only Midwest state using the property tax, startups may be deterred from coming to Michigan. Therefore, eliminating the tax effectively boosts our economy. 

Read more. . . 

Pass Proposal 1 on Aug. 5 ballot. Much needed reform will benefit all

Lansing State Journal | May 31, 2014 

It is a rare occurrence in Michigan when a reform effort wins broad support from a coalition that draws large and small business, labor, government, Democrats  and Republicans.  Yet that's what has happened with Proposal 1, a statewide question that will appear on the Aug. 5 primary ballot. Prop 1 asks voters to approve a change in local taxation tied to a package of reforms to the personal property tax, a tax on business equipment. Read more. . .