New Law Would Eliminate the Personal Property Tax for Thousands of Small Business
Significant bipartisan support in both the House and Senate has resulted in the enactment of an eleven bill package which makes significant changes to the imposition and administration of the personal property tax in Michigan.
Local governments will receive full reimbursement for lost personal property tax revenue associated with the tax reduction. In addition, the small "essential services assessment" (ESA) that manufacturers will pay to cover their costs associated with local government police, fire, ambulance and jail services will now be a flat, statewide rate that is fixed in law and requires only one form and payment to be filed and paid to the state. This part of the proposal will result in an average 80% net tax reduction for these taxpayers.
On August 5, 2014, Michigan voters will be asked whether they approve of directing the reimbursement money to local governments. If the ballot question is not approved, then presumably, the personal property tax reform will be repealed.
Ron Kaley is available to consult on matters involving the personal property tax reform. He will present a detailed discussion of the reforms enacted at the Michigan State and Local Tax Update seminars in Traverse City and Troy in May.
Michigan State and Local Tax Update (30637 - MSLTTC)
Monday, May 12, 2014
Holiday Inn Traverse City - West Bay - Traverse City, MI
Michigan State and Local Tax Update (30641 - MSLTTR)
Monday, May 19, 2014
MSU Management Education Center - Troy, MI