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.”