Senate panel approves personal property tax reform

Senate panel approves personal property tax reform

Lansing— Legislation that would reduce the personal property tax for Michigan businesses was approved by the Senate Finance Committee on Tuesday said, Chairman Sen. Jack Brandenburg.

“First off, I would like to thank everyone who came to testify before the committee,” said Brandenburg R-Harrison Township. “Some people made multiple trips to Lansing in order to listen and offer testimony and the committee is better informed because of their efforts.”

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% of returns that currently need to be filed.
• Effective Dec. 31, 2015 all eligible industrial personal property bought after December 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 is sponsor of Senate Bills 1065 and 1072 and will co-sponsor the rest of the package.

“When job providers are able to grow and provide jobs, everyone is better off,” Brandenburg said. “A growing vibrant economy can solve many of the problems that our state is facing. This package will attract new businesses to Michigan and will allow new companies to expand as they see fit.”

SBs 1065-1072 now advance to the full Senate for consideration.