PPT Elimination Package Introduced- First Hearing Held

As expected, an eight bill package was introduced Tuesday providing for significant personal property tax relief for Michigan businesses. Senate Bills 1065 (Brandenburg), 1066 (Robertson), 1067 (Caswell), 1068 (Robertson), 1069 (Hildenbrand), 1070 (Nofs), 1071 (Nofs), and 1072 (Brandenburg) were all referred to the Senate Finance Committee where the first hearing on the matter was held Wednesday.

The committee hearing brought few surprises as proponents described the legislation as imperative reform to cease penalizing business for investing in the state while opponents called for a dollar-for-dollar replacement of all local government funding lost under the proposal. Lt. Governor Brian Calley testified before the Senate Finance Committee Wednesday, providing an in-depth description of the package and making the Administration’s case for its passage.

The legislation itself, however, had a couple of surprises. As fully expected, the reform would immediately exempt businesses from paying PPT if the business has less than $40,000 of industrial or personal property in any local governmental unit. The phase-out of the industrial portion of the tax would run for only six years, from 2016 – 2021, not the 10 years that was expected to 2025.

As introduced, the package would reduce the roughly $1.2 billion in annual revenue to local units of government by approximately $470 million per year.

posted by PAA Online , Friday, April 20, 2012 10:28 AM
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