PPT Eliminaiton And Revenue Replacement Still On Hold

Although earlier reports had indicated an elimination of the state’s personal property tax (PPT) was on-tap prior to the year’s end, Michigan’s Lt. Governor Brian Calley and Senate Finance Committee Chair Jack Brandenburg (R-Harrison Township) have signaled that the debate will continue in January as the nine session days remaining in 2011 are quite crowded with agenda items.

The much-maligned tax on equipment is viewed by most as a deterrent to business investment for many reasons; however, it provides in the neighborhood of $1.2 billion in revenue to local units of governments and school districts.

A recent study conducted by the Anderson Economic Group of East Lansing found that nearly 40 local units rely on PPT-generated dollars for more than 30 percent of their revenue and that 13 of Michigan’s 83 counties receive more than 12 percent of their revenue from the same source.

The Governor is reportedly putting finishing touches on a plan that will gradually eliminate the PPT over several years, using the expiration of future years’ business tax credits for revenue replacement.

posted by PAA Online , Friday, November 18, 2011 11:59 AM
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