An upcoming state-wide ballot proposal to eliminate Michigan’s Personal Property Tax (PPT) for small businesses and manufacturers is endorsed by the Traverse City Area Chamber of Commerce.
The Chamber board today joined several Michigan business, local government and public safety organizations in supporting pending changes in state law to make permanent a repeal of Michigan’s PPT levies on small businesses and manufacturers. A proposed state-wide ballot question is targeted for the Aug. 5 primary election ballot.
Under changes to state law made two years ago, businesses with up to $80,000 worth of personal property such as office equipment, computers, vehicles and related assets were able to file exemption forms this year to eliminate their Personal Property Tax liability. The legislation initially targeted small businesses and manufacturers, and manufacturing companies will see their tax relief starting in 2016.
However, state law requires that those tax changes be approved by Michigan voters to remain in effect. If the ballot question fails, PPT reductions that were put in place will be repealed in the 2015 tax year.
State lawmakers are presently moving legislation that will fully replace lost revenue for local units of government through the elimination of the PPT. Under the current proposal, large manufacturers with more than $80,000 worth of personal property will pay an “Essential Service Assessment” on their personal property. Expiring business tax credits will make up the remainder of the local government revenue.
Learn more about this important issue in this legislative blog from Chamber Government Relations Director Kent Wood by clicking here.