After
a large effort to educate voters on the ballot language of Proposal 1,
supporters were able to celebrate on Tuesday. The proposal passed by a 2 to 1
margin after many supporters were nervous about the proposal’s chances. With 98
percent of precincts reporting, the proposal had 827,003 yes votes to a measly
365,439 no votes and had won in every county in the state.
The
passage of the proposal will eliminate the Personal Property Tax paid by
businesses in Michigan. Part of Use Tax revenue will now be dedicated to local
governments in order to cover the revenue that previously came from the
Personal Property Tax. The change in the Use Tax revenue stream will take from
the General Fund; however, those supporting the proposal hope that the
increases in businesses in the state from the passage of the proposal will help
close that gap.
Both
local governments and businesses were in support of the measure passing while
liberal voters, as well as tea party members, opposed the proposal. The
Michigan Municipal League said that they had collaborated with many local
governments in order to pass resolutions and publically urge voters to pass the
measure.
Early
polling showed less that 40 percent of voters were in favor of the proposal;
however, after being educated on the issue, that number drastically increased.
Due to these results the campaign supporting the effort sent out mail and
television ads totaling millions of dollars in order to give voters a better
understanding of the confusing language.