Great News! Last week, the Legislature finalized personal property tax reform and Governor Snyder began signing bills on Friday. The Michigan Chamber participated in the bill signing and press conference. View the YouTube video of the event here.
In a strong display of diverse support, the House and Senate passed the 11-bill personal property tax package (Senate Bills 821-830, and House Bill 4478), getting reform one step closer to reality.
Under this revised package, local governments will receive full reimbursement for loss associated with this tax reduction. In addition, the small “essential services assessment” (ESA) that manufacturers will pay to cover their costs associated with local government police, fire, ambulance and jail services will now be a flat, statewide rate that is fixed in statute and requires only one form and payment to be submitted to the state. This proposal will result in an average 80% net tax reduction for these taxpayers.
Now our effort will turn towards educating Michigan voters about why this proposal is good for Michigan! Don’t forget that on August 5, 2014, Michigan voters will be asked whether they approve of directing the reimbursement money to local governments. Please mark your calendar and be sure to cast a vote; if the ballot question is not approved, the personal property tax reform will be repealed.
If you are taking advantage of the small business exemption already or expect to get relief from this archaic tax, please share your story with us!