LANSING — Legislation to reduce the personal property tax for Michigan businesses was approved by the Michigan Senate Thursday, said co-sponsor Sen. Joe Hune.
“Enacting these reforms will help boost the state’s economy by making it possible for job providers to grow and offer more jobs to our hard-working residents,” Hune said. “We need to keep Michigan on the right path to getting back to work, and these measures will help ensure just that.”
The eight-bill package would alter the personal property tax in the following ways:
· Effective Dec. 31, 2012 any commercial or industrial business that has personal property valued at $40,000 or less will not pay taxes and will not file a return. This would eliminate 75 to 80 percent of returns that currently need to be filed.
· Effective Dec. 31, 2015 all eligible industrial personal property bought after Dec. 31, 2011 will not be taxable.
· Effective Dec. 31, 2015 any eligible personal property that is 10 years old will no longer be taxed. This will continue each year until all property is tax exempt.
“Between 2000 and 2012, Michigan lost nearly half of its manufacturing jobs,” Hune said. “Michigan is one of only two states in the Great Lakes Region that still relies on the personal property tax, which puts our state at a competitive disadvantage with neighboring states.”
According to Hune, eliminating the personal property tax is the right thing to do, because job providers shouldn’t be penalized for expanding or investing in their business
Senate Bills 1065 through 1072 now advance to the Michigan House of Representatives for further consideration.