Senate Finance Committee Passes PPT Elimination Package

Chairman Jack Brandenburg (R-Harrison Township) and the Senate Finance Committee passed the personal property tax (PPT) elimination package to the Senate Floor Tuesday. Senate Bills 1065 (sponsored by Senator Jack Brandenburg), 1066 (Robertson), 1067 (Caswell), 1068 (Robertson), 1069 (Hildenbrand), 1070 (Nofs), 1071 (Nofs), and 1072 (Brandenburg) all passed along party lines.

The package was not amended at the committee level; however, all expect amendments to be offered during floor debate. The package proposes to 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 six years, from 2016 – 2021.

Senate Majority Leader Randy Richardville has indicated a desire to move the measure from the Senate prior to the Legislature’s departure for summer recess on or around June 28^th.

Replacement revenue to local units of government remains the contentious issue with many going as far as to claim the reform will result in higher taxes. The revenue replacement bill, SB 1072, requires the Department of Treasury to replace revenue lost by the local units that exceeds 2 percent of their revenue in the current year.

posted by PAA Online , Friday, May 4, 2012 11:14 AM
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