Tag Archives | Personal Property Tax

Michigan Republicans look to take another half-billion from cities to give to businesses

Kicking cities while they’re down

Michigan Republicans passed a budget last year that gives businesses $1.6 billion dollars in tax breaks, paid for by slashing school funding and raising taxes on over half of Michiganders. Now, they are about to hand them another half billion dollars by phasing out the personal property tax (PPT).

It’s generally agreed that the PPT is not a particularly smart tax. It forces companies to pay taxes on equipment that they purchase which has the effect of encouraging them NOT to make capital investments that can help them thrive and grow.

However, here’s the rub: getting rid of it will take nearly half a billion dollars out of city budgets, many of which are largely dependent upon this tax. If you think the problem with bankrupt cities and Emergency Managers is bad now, this will make it worse.

Have a look at this chart from the Michigan Municipal League’s Replace Don’t Erase website…


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Michigan GOP: Schools are down. Let’s kick ‘em!

Reporting by the Livingston County Press & Argus shows that Michigan schools will take hit of over a half billion dollars under a new plan by Michigan Republicans to eliminate the state’s Personal Property Tax (PPT).

The elimination of a state tax on business furniture and machinery would further cut funding for Michigan’s public schools, state and school officials said.

Elimination of the tax on commercial personal property would create a loss of roughly $573 million in revenue for Michigan’s public schools, based on 2010 revenue figures, according to a House Fiscal Agency report.

Michigan schools, which will receive a total $470-per-student cut this school year, would suffer an even greater hit if the tax is eliminated and not replaced with other revenue, said Dan Danosky, superintendent of Pinckney Community Schools.


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More on MI Senate Leader Randy Richardville’s attacks on teachers and municipalities

As I reported last week, GOP Senate Majority Leader Randy Richardville is out to make Michigan a right to work state, but only for teachers. He said so on Tim Skubick’s “Off the Record”. In an interview with MIRS news service, he went even further, ridiculously saying he doesn’t think teachers realize that Michigan is having economic problems.

Senate Majority Leader Randy Richardville(R-Monroe) said today he believes that other unions “get it” when making sacrifices in this current economic climate, but he wouldn’t include the Michigan Education Association (MEA) in that group.

“I don’t think the teachers’ union understands where we are,” he said.


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