PPT Package Substantially Amended- Passed by Senate

The State Senate made significant changes to the personal property tax (PPT) elimination package on the Senate floor Thursday – so significant that the three major organizations representing local government changed their respective positions to “neutral” after months of consistent opposition. The Michigan Municipal League, the Michigan Association of Counties and the Michigan Townships Association had previously been opposed to anything shy of a constitutional guarantee of full revenue replacement; however, the substitute package passed by the Senate changed their collective tune.

Senate Bills 1065 (Brandenburg), 1066 (Robertson), 1067 (Caswell), 1068 (Robertson), 1069 (Hildenbrand), 1070 (Nofs), 1071 (Nofs) and 1072 (Brandenburg) now move to the House where an uncertain future lies ahead. The House had already indicated that the measures will not be addressed prior to departure for Summer recess.

The key change came in the form of an amendment offered by Senator Dave Hildenbrand (R-Lowell). The “repealer” amendment calls for the return to the current state of the PPT if future Legislatures fail to provide for reimbursement to local units for revenues lost due to the tax elimination.

Also added were amendments to address concerns with the reform’s effect on local bond indebtedness and how much revenue a local must lose prior to obtaining reimbursement.

Even with the changes, the legislation still received “no” votes from all Democratic members of the Senate and a handful of Republicans.

posted by PAA Online , Friday, May 11, 2012 10:25 AM
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