With the business and individual tax reforms largely behind them since late spring, the Administration and some members of the Legislature have since been focusing on the Personal Property Tax (PPT) paid on industrial equipment. The Lt. Governor is leading the charge for the Administration, including conducting workgroups to discuss the phase-out of the PPT and options for revenue replacement.
Mr. Calley has made statements indicating that a full dollar-for-dollar replacement of the revenue generated by the PPT is not a priority; however, ensuring replacement of a significant portion is important to ensuring the local units across the state, which rely on the revenue, are able to cope. The option receiving the most discussion appears to be utilizing the revenue stream resulting from credits under the eliminated Michigan Business Tax (MBT).
Decisions are still pending regarding the origination of the legislation in the House or the Senate, as well as sponsors and committee destinations.