Describing
it as the second dumbest tax in the state – next only to the previously eliminated
Michigan Business Tax (MBT), Governor Rick Snyder signed legislation Thursday
to phase-out the state’s tax on industrial personal property over the next 10
years. House Bills 6022,
6024,
6025,
6026
and Senate Bills 1065,
1066,
1067,
1068,
1069,
1070
and 1071
were signed during a ceremony in the Governor’s press auditorium, while
surrounded by legislators and business leaders.
80
percent of the revenue local governments previously received from the tax is
theoretically replaced by the package. Local governments can also replace 100%
of lost revenue to police, fire, ambulance, and jail operations through special
assessment.
The
package includes a redistribution of Use Tax dollars. This change, under HB
6026, requires voter approval and since all bills are tie-barred to HB 6026, in
essence, the entire plan requires the same approval. The matter will be on the
statewide ballot in 2014.