Imagine you buy a new laptop. You pay for the computer (with 6 percent Michigan sales tax, of course), but then you learn you are not done. You must also pay a tax on that laptop every year from now on, over and over again. Would you buy that computer?
This is the calculation businesses must make every time they consider buying a new machine, piece of furniture, or other technology here in MI. For generations, personal property taxes have been levied against business investment in our state -a real disincentive to jobs and economic growth.
It's time for the personal property tax to be eliminated. It's tough enough to attract job providers in a competitive global economy; let's not make it harder by adding a tax structure that just doesn't make sense.This August, MI voters have a chance to eliminate it with Proposal 1.
Some might think that local units of government who rely on the personal property tax as a source of revenue would want to keep it, right? WRONG. MI's communities have come together as major supporters of Proposal 1. They dislike the wild revenue fluctuations associated with the tax, their inability to plan budgets, and the difficulty of administering assessments.
It really says something when those who benefit from a particular tax want to get rid of it as much as everyone else. That is why the MI Legislature developed a plan that will:
- Immediately repeal the personal property tax for MI's small businesses.
- Phase out the tax over the next decade for manufacturers.
- Replace lost revenue for locals using a portion of the state's existing use tax, a special assessment for manufacturers, and revenue gained from ending special business tax credits.
For more info, visit www.StrongandSafeCommunities.com, and be sure to vote August 5.