Anderson Economic Group: PPT repeal would create jobs

Anderson Economic Group: PPT repeal would create jobs

LANSING— Reforming Michigan’s personal property tax (PPT) structure would create between 6 thousand and 15 thousand jobs, according to a study released by Anderson Economic Group (AEG) on Wednesday. 

When combined with the new corporation income tax (CIT) and the elimination of individual income tax exemptions, the job growth rises to 19 thousand to 46 thousand jobs.

“If I had to sum up the findings of this study in one word, it would be ‘fantastic,’” said State Sen. Jack Brandenburg, R-Harrison Township. “The more people working the better off our state will be. I have been working very hard on the PPT bills, and the findings of this study will only make me work harder.”

The eight-bill PPT package is currently in the Senate Finance Committee, chaired by Brandenburg.

The AEG study also reported that due to increased business activity and other “dynamic effects” state and local revenues could increase by $155.3 million by 2015 and $384 million by 2025.

The study also predicts between $190 million and $450 million in business investments and between $430 million and $1 billion in business consumption.

“Michigan and Indiana are the only Great Lakes states that tax manufacturing equipment, putting Michigan at a serious competitive disadvantage,” Brandenburg said.

The report was commissioned by the Michigan Manufacturers Association (MMA). It concludes that the proposed reforms of the PPT would exempt around 60 percent of commercial and industrial parcels from the PPT starting in 2013. All eligible manufacturing personal property would be exempt by 2022.   

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Michigan registers largest jobless rate decline

Michigan registers largest jobless rate decline

Lansing— Michigan and Alabama registered the largest jobless rate decreases from March 2011 to March 2012 by both registering drops of 2 percentage points, according to a U.S. Bureau of Labor Statistics report released today.

“Slowly but surely we are chipping away at the unemployment rate,” said Brandenburg, R-Harrison Township. “At one point, Michigan had the highest unemployment rate in the country; we are now tied for 14th. I am looking forward to continued progress for Michigan, and I am confident that our unemployment rate will continue to decline due to the actions taken by the Legislature in the past 16 months.”

Michigan unemployment continues to drop

Michigan unemployment continues to drop

LANSING— Michigan’s seasonally adjusted unemployment rate fell to its lowest level in nearly four years in March when the state recorded an unemployment rate of 8.5 percent, state officials said Wednesday.

The March rate of 8.5 percent was 0.3 percentage point lower than the February rate of 8.8 percent, and it was a full percentage points lower than the March 2011 rate of 10.5 percent, said officials with the Michigan Department of Technology, Management and Budget.

And the total number of people reported being without work fell to 397,000, down 12,000 from February and down 96,000 from March 2011.

The unemployment rate also fell to 9.4 percent in the Detroit-Warren-Livonia market from 9.8 percent in February. In March 2011, the local unemployment rate stood at 11.7 percent.

“This is more good news for Michigan,” said Brandenburg, R-Harrison Township. “The reforms that the Legislature put in place are having consistent positive effects across Michigan. We still have a ways to go, but the end result will be a more effective and efficient Michigan.”

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Personal property tax hearings begin in Senate Finance Committee

Personal property tax hearings begin in Senate Finance Committee

LANSING— The Senate Finance Committee held the first of what will be many hearings on Personal Property Tax (PPT) reform on Wednesday, said Chairman Jack Brandenburg. 

“I was happy to see such a large group of people attend our first hearing,” said Brandenburg, R-Harrison Township. “We heard testimony both in support of and in opposition to business PPT reform; and many different ideas were shared. I look forward to more discussion in the coming weeks and months.”

Lt. Gov. Brian Calley was the first person to testify before the committee and laid out why business PPT reform is necessary. He also gave a breakdown of the key components of the legislation.

“I would like to thank the lieutenant governor for taking the time to attend the committee meeting and for taking a leadership role on business PPT reform,” said Brandenburg.

Those who testified in opposition to business PPT were concerned about how revenue lost by local units of government would be replaced.

Senate Bill 1072, sponsored by Brandenburg, addresses the problem of how revenue will be replaced. Under the measure, beginning in 2016, the Department of Treasury is required to prepare an estimate for each category of political subdivision (e.g. counties, cities, townships,) of revenue lost in that fiscal year as a result of the proposed exemptions.

Brandenburg’s legislation also instructs the legislature to send at minimum the amount recommended by the Treasury department to each governmental entity. The Legislature may then allocate any additional funds they see fit.

“Many of the changes in this package of legislation do not take place effect until 2016, which is when the MEGA and battery tax credits expire,” said Brandenburg. “The expiration of these credits will mean that the state will be receiving more tax dollars. A portion of the increased tax revenue will be placed in a fund to help replace personal property tax revenue; local officials will then decide how the money should be distributed.”

“This is a complex piece of legislation with lots of moving parts, which is why we plan to have multiple hearings,” said Brandenburg. “However, I firmly believe that once business PPT reform is put into place Michigan will benefit from a better business environment, leading to increased investment and economic activity, a growing tax base and more jobs.”

 

Personal property tax reform headed to Senate Finance Committee

Personal property tax reform headed to Senate Finance Committee

LANSING— Legislation that would reduce the personal property tax for Michigan businesses is bound for the Senate Finance Committee, said sponsor Sen. Jack Brandenburg.

This 8 bill package would alter the personal property tax in the following ways:

• Effective December 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% of returns that currently need to be filed.

• Effective December 31, 2015 all eligible industrial personal property bought after December 31, 2011 will not be taxable.

• Effective December 31, 2015 any personal property that is ten years old will no longer be taxed. This will continue each year until all property is tax exempt.

Brandenburg is sponsor of SBs 1065 and 1072 and will be co-sponsoring the rest of the package.

“I have been working with my colleagues on this legislation since it was just an idea in a room,” said Brandenburg, R-Harrison Township. “However, the hard work still lies ahead of us. The next few months will be filled with more meetings, committee hearing and gathering input from as many people as possible. I am confident that all of our hard work will pay off, I am looking forward to rolling my sleeves up and continuing to be one of the leaders on helping to pass this critical legislation” 

“This is a major step in the right direction toward long term prosperity for Michigan businesses,” said Brandenburg. “Businesses owners already had to pay taxes on the property when they bought it the first time; there is no reason they should have to pay a second tax.”

“It is important to understand that these bills do not cut businesses tax at the expense of taxpayers, but rather this legislation takes aim at businesses tax credits. Many of the changes in this package of legislation do not take place effect until 2016, which is when the MEGA and battery tax credits expire, said Brandenburg” The expiration of these credits will mean that the state will be receiving more tax dollars. A portion of the increased tax revenue will be placed in a fund to help replace personal property tax revenue; local officials will then decide how the money should be distributed.

“I know Michigan has the potential to be a model for the rest of the country as long as the right system is put in place. Over the past 16 months, many positive steps have been taken in order to create jobs and improve the business climate in Michigan personal property tax reform is yet another common sense positive step in the right direction.”                                 

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Brandenburg agrees consent agreement is best for Detroit

Brandenburg agrees consent agreement is best for Detroit

Lansing—After weeks of negotiations, the Detroit City Council agreed to the consent agreement on Wednesday evening to address the $200 million budget deficit facing the city of Detroit.

State Sen. Jack Brandenburg, R- Harrison Township, offered the following response.

“There were only three choices for the city: consent agreement, emergency manager, and bankruptcy. The consent agreement is a win-win situation for all parties involved. The status of Mayor Bing and the council will not change, oversight by the financial advisory board will occur, and a detailed outline for fixing the city with the reforms favored by the governor will be carried out.
“A bailout was not an option. First off, the money is simply not there, and secondly, it is time for Detroit to take responsibility for the mistakes of the past. Decades of ineffective leadership and inaction are a large part of the reason Detroit is in the dire condition that it is in today.

“I support any measure to ensure that bankruptcy never becomes a reality for Detroit. The enormous black eye to Michigan’s reputation would be long lasting and disastrous to our economy and to job creation. Bankruptcy would devastate the credit rating of the entire state, increase interest rates and reduce the ability of the state and any local government or school districts in Michigan to borrow money.”

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