Repealing the Personal Property Tax (PPT) and Replacing Revenue for Local Governments

The August ballot will include a single proposal (Proposal 14-1), which would repeal the Personal Property Tax, which taxes business owners’ equipment. The tax has been attacked by Republicans as a major job killer and as a damper on Michigan’s competitiveness in the Midwest. Reforms of the PPT have been passed by the legislature twice, first in 2012 and then in 2014, but the ballot proposal is the final piece to officially phase out the tax. The legislation passed in 2014 defined what the revenue replacement formula would look like.

Municipalities will recover almost all lost revenue through the new formula. In some manufacturing municipalities the PPT accounts for nearly 50 percent of revenue, which makes the revenue replacement formula crucial in many areas of the state. Proposal 14-1 has been estimated by the House and Senate Fiscal Agencies to be revenue neutral and is viewed by some as tax relief. The $500 million in tax relief will direct money into a newly created statewide agency. The agency’s main directive will be to reimburse local agencies for their lost revenue.

In an effort to offset the reimbursement, $600 million in business tax credits will expire and starting in 2016 companies benefitting from the PPT relief will help reimburse municipalities via a new state assessment. There has yet to be any organized opposition to the proposal, while the Michigan Citizens for Strong and Safe Communities coalition including the MMA, MML, Business Leaders for Michigan, and the Michigan Business and Professional Association are all in support of the proposal.

posted by PAA Online , Friday, July 11, 2014 10:18 AM
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Gaming Board Issues Emergency Rules For Charity Poker Changes

The emergency rules passed by the Gaming Control Board were made effective when they were filed on Wednesday. The rules were enacted in order to ensure that charity gaming regulations exist after the previous rules were suspended in May by the Court of Claims. The new rules limit charity gaming venues to four days per week and two events per day.

The emergency rules were necessary after the suspension of the new rules, as the previous rules had been rescinded causing a void that needed to be filled. Dave Murray, spokesperson for Governor Snyder, said that the emergency rules were pulled from the new rules; however, it involves only the essential pieces as the document has been trimmed down from 26 pages to 6 pages. The only rules left are the ones that were considered most important by the state attorneys.

The Michigan Charitable Gaming Association released a statement saying that emergency rules are viewed by their group as similar to the rules suspended by the court. Stephanie Van Koevering, spokesperson for the Michigan Charitable Gaming Association who challenged the original rules, said that they would file with the court to review the emergency rules.

The newly enacted rules would leave hours of operation for charity gaming venues up to the gaming director. The emergency rules would also require three members of a charity be present at their event not including the acting dealer and it would limit the chair of the groups term to one year.

posted by PAA Online , 10:17 AM
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Election/Campaign Update

Senate Minority Floor Leader Tupac Hunter (D-Detroit) has announced his endorsement of former Representative Shanelle Jackson for the 5^th Senate District. Both Jackson and Hunter share a pro-life stance on abortion, which is outside of the party norm. Ms. Jackson is running against three current Representatives, David Knezek (D-Dearborn Heights), Thomas Stallworth III (D-Detroit), and David Nathan (D-Detroit), for the open seat. All three representatives have an available term in the House but have decided to pursue the open Senate seat.

Second quarter Federal Election Commission fundraising reports show that Republican U.S. Senate Candidate Terri Lynn Land has outraised the Democratic candidate U.S. Representative Gary Peters. Ms. Land raised $2.15 million in the second quarter while Peters raised $1.96 million. Ms. Land also announced that she had $5.25 million cash on hand while Mr. Peters declined to release his cash on hand number. The Peters’ campaign did however point out that more than two-thirds of his second quarter fundraising came from donations of $25 or less. While the Land campaign continues to trumpet the fundraising advantage, the Democratic Party is quick to point out that nearly $3 million of Ms. Land’s fundraising has come from her own pocket.

posted by PAA Online , 10:16 AM
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Richardville Signals Support for Elliott-Larsen Amendment

For the first time this week, Senate Majority Leader Randy Richardville (R-Monroe) stated that he would support legislation to amend Michigan’s Elliott-Larsen Civil Rights Act to include sexual orientation.

Appearing on Michigan Public Television’s “Off the Record,” Senator Richardville has indicated that he could see introduction of and a vote on legislation as early as September.

Richardville reiterated his opposition to same-sex marriage, noting that his support for amending the Elliott-Larsen Civil Rights Act is about discrimination in the workplace.

posted by PAA Online , 10:14 AM
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Quote of the Week

“I think if you write an unconstitutional resolution you should be correct.”

- Representative John Engler, 1977

posted by PAA Online , 10:13 AM
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PAAdvisory Briefs

Murley Moves to Gaming Control

Former deputy legal counsel for Governor Rick Snyder, Dave Murley, has been appointed to be the new deputy director of the Michigan Gaming Control Board. The Governor has not yet named Mr. Murley’s successor as deputy legal counsel.

LARA Warns Of Corporate Scam

On Tuesday, Steve Arwood, Director of the Department of Licensing and Regulatory Affairs, issued a warning to corporations about phone calls requesting business information. The statement told corporations to ignore requests from callers posing as representatives from the State of Michigan Corporations Division. The phone number has been linked with similar scams that are running throughout various states.

posted by PAA Online , 10:13 AM
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