MI Agribusinesses Praise Lt. Gov. Calley Plan to Eliminate Personal Property Tax
Date Posted: December 12, 2012
East Lansing—The Michigan Agri-Business Association has praised Lt. Gov. Brian Calley and the Legislature for moving forward on a plan to eliminate the personal property tax for Michigan businesses.
The Michigan House is expected to vote on the package of bills later this week.
“The personal property tax is a burden on Michigan’s businesses that puts us at a competitive disadvantage and stifles economic growth,” said Jim Byrum, president of the Michigan Agri-Business Association.
“Many surrounding states have already eliminated their personal property taxes for businesses.
"The Lt. Governor’s plan would level the playing field and ensure that Michigan businesses can compete and grow.”
The plan calls for phasing out the personal property tax on business equipment over a 10-year period and would eliminate taxes on businesses with equipment that amounts to less than $40,000 in taxable property beginning in 2014.
The plan would also reimburse 80 percent of the revenue lost by local governments, provided that the personal property tax accounts for more than 2.5 percent of their total taxable value.
Whether or not to use state tax dollars generated by the “use” tax to replace the personal property tax income for local governments would be decided by a statewide vote in 2014.
“The personal property tax slows the growth of Michigan’s agriculture sector by discouraging agri-businesses from investing in new equipment or expanding their operations,” Byrum said.
“As agriculture becomes more high-tech and demand for food and other agricultural products skyrocket, it is essential that Michigan foster a business environment that encourages new investment.”
For more information, call 517-336-0223.