Nofs amendment protecting local debt & voter-approved special millages passes
LANSING, Mich.– Legislation that would reduce the personal property tax for Michigan businesses was approved by the Senate on Thursday.
“These bills begin the process of eliminating a cumbersome tax that both job providers and local government officials agree needs to go,” said state Sen. Mike Nofs, author of two bills in the package. “They provide immediate relief for our smallest businesses while also beginning the phase-out process for our manufacturers, a segment that is key to the future well-being of Michigan.”
The reform stimulates business growth while protecting homeowners from property tax increases. Amendments successfully championed by Nofs ensure that voter-approved millages for bonded debt are 100-percent protected from declining revenue along with police, fire, senior and other similar millages.
Nofs indicated that his amendments were the result of collaboration with local officials to ensure security for vital municipal services.
“We listened closely to our local units and did our best to try and provide an increased level of certainty for them,” explained Nofs, R-Battle Creek. “As a former local official, I understand their hesitancy, but I believe this package will help increase investment in Michigan and improve our overall economy.”
The eight-bill package would alter the personal property tax in the following ways:
• Effective Dec. 31, 2012 any commercial or industrial businesses that have personal property valued at $40,000 or less will not pay taxes and will not file a return. This would eliminate 75-80 percent of returns that currently need to be filed.
• Effective Dec. 31, 2015 all eligible industrial personal property bought after December 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.
Nofs’ measures, Senate Bills 1070 and 1071, implement the exemption for personal property valued below $40,000 and the phase-out of all industrial personal property tax over a 10-year period, respectively.
“When job providers are able to grow and provide jobs, everyone is better off.” “A growing, vibrant economy can solve many of the problems that our state is facing. This package will attract new businesses to Michigan and will allow new companies to expand as they see fit.”
SBs 1065-1072 now advance to the Michigan House of Representatives for further consideration.