Personal Property Tax

Personal Property Tax Changes: Get Ready for Complications

Personal property tax reform was assured with last August’s state-wide referendum. Now that the political campaign is over, the sound-bite style of describing the new law has died down.  

You will soon need to apply this complicated set of new rules to your company’s tax filings.  Let’s see how the reality of this new law differs from the sound bites you’ve heard this year.

Sound bite #1: All personal property will be exempt from tax.

Personal Property Tax Ballot Question Formally Designated as Proposal 1

It's official! The personal property tax reform ballot question will appear on the August 5th ballot as Proposal 1. The Michigan Chamber is strongly supportive of reducing and eliminating this uncompetitive tax on business and machinery. To help spread the word, and educate voters about the importance of voting "Yes" on this proposal, the Michigan Chamber has joined a diverse coalition - Michigan Citizens for Strong & Safe Communities.

Michigan Chamber Applauds Governor Snyder's Support, Bi-Partisan Effort to Reform Business PPT

The Michigan Chamber of Commerce today commended the Snyder Administration and both the State House and Michigan Senate for displaying overwhelming bi-partisan support to begin phase-out of Michigan’s burdensome business personal property tax while protecting local communities with full reimbursement revenue.

Michigan Chamber Joins Coalition to Educate the Public About the Benefits of Passing the PPT Ballot Proposal in August 2014

The Michigan Chamber has joined the Michigan Citizens for Strong & Safe Communities to help educate the public about the benefits of passing the August 5, 2014 ballot question to fully implement personal property tax relief and protect Michigan's communities with a more stable revenue stream. Please visit the following links to learn more about this diverse coalition effort.

Executive Summary

Michigan Finally Has a Structure in Place to Begin Reducing the PPT

Monday, Dec. 17, 2012 - Good News! On the last night of the Lame Duck session, the Michigan Legislature finalized legislation to begin phase-out of the much-maligned business personal property tax (PPT.) The Michigan Chamber views elimination of the PPT for all business taxpayers as a top legislative priority.

Michigan Chamber Applauds Lt. Gov. Calley, Legislative Leaders Richardville and Bolger for Efforts to Provide PPT Relief

Friday, Dec. 14, 2012 -  The Michigan Chamber of Commerce today applauded passage of legislation to finally begin elimination of Michigan’s burdensome and uncompetitive business personal property tax. Elimination of the PPT was a top legislative priority of the Michigan Chamber for 2012.

“Untangling this Gordian knot has eluded legislators for decades,” noted Tricia Kinley, Senior Director of Tax & Regulatory Reform for the Michigan Chamber. “We finally have a structure in place to move ahead.

Lt. Gov., Lawmakers Offer Plan to Reform Personal Property Tax

Wednesday, Nov. 28 - A plan to keep Michigan’s economy driving forward by reforming the burdensome personal property tax was outlined yesterday by Lt. Gov. Brian Calley, Senate Majority Leader Randy Richardville and House Speaker Jase Bolger. The proposal recognizes the vital role that strong communities and schools play in Michigan’s future by providing reimbursement rates to most local units of 100 percent for police, fire and ambulance revenue losses and a minimum of 80 percent for everything else. It also holds the School Aid Fund harmless and fully covers school debt.

More Work Needs to Be Done on Senate-Approved Legislation to Phase-Out Job-Killing Personal Property Tax

The Michigan Senate in early May passed legislation to begin addressing Michigan’s burdensome personal property tax. The Michigan Chamber is pleased that the process continues to move forward, however the Senate added problematic amendments that must be removed in the Michigan House.

Michigan Senate Introduces Legislation to Begin Phase-Out of Personal Property Tax

The Michigan Senate on Tuesday, April 17th, unveiled an Administration-backed proposal to immediately exempt small businesses from Michigan's burdensome business personal property tax and begin phase-out of the tax on manufacturing equipment.  

This $1.2 billion tax on Michigan job providers continues to make Michigan uncompetitive for jobs - particularly among Great Lakes states - most of whom exempt this complicated and burdensome tax.

Highlights of the proposal include: