An eight bill package to reform Michigan’s personal property tax (PPT) will be introduced in the Senate upon the legislature’s return from Spring Break – and reports are that Senate Finance Committee Chairman Senator Jack Brandenburg (R-Harrison Township) plans to waste little time in addressing the measures.
As expected, the package will serve to eliminate the PPT on industrial property over a ten year phase-out beginning in 2016. Further, it creates a threshold of $40,000 under which business will not have to pay either commercial or industrial PPT.
The roughly $900 million annual revenue impact to local units of government will be partially paid for by expiring business tax credits; however, local units have been advocating for a constitutional guarantee of full funding replacement – something the Republican administration and legislature opposes.
The legislation may be introduced as early as April 17th with a hearing before the Senate Finance Committee coming shortly thereafter.