PPT reform approved by Michigan Senate
LANSING— Legislation that would reduce the personal property tax for Michigan businesses was approved by the Michigan Senate Thursday, said sponsor state Sen. Jack Brandenburg.
“This is a major step in the right direction for Michigan businesses,” said Brandenburg R-Harrison Township. “During my campaign, I promised to do everything in my power to create jobs and foster an environment that would attract new business and allow current companies to expand. Personal property tax reform does just that.”
This eight-bill package would alter the personal property tax in the following ways:
• Effective Dec. 31, 2012 any commercial or industrial business that have personal property valued at $40,000 or less will not pay taxes and will not file a return. This would eliminate 75-80 percent of returns that currently need to be filed.
• Effective Dec. 31, 2015 all eligible industrial personal property bought after Dec. 31, 2011 will not be taxable.
• Effective Dec. 31, 2015 any eligible personal property that is 10 years old will no longer be taxed. This will continue each year until all property is tax exempt.
Brandenburg sponsored Senate Bills 1065 and 1072 and co-sponsored the rest of the package.
“According to a study by Anderson Economic Group reforming Michigan’s personal property tax structure would create between 6 thousand and 15 thousand jobs,” Brandenburg said. “As I have said before, this package will create jobs and it will help move Michigan forward. I want Michigan to be a business model for the rest of the country, and I believe this legislation is critical to moving Michigan forward.
SBs 1065-1072 now advance to the Michigan House of Representatives.