Thank you for taking the time to help spread awareness about the importance of repealing Michigan’s Personal Property Tax and voting “Yes” on Proposal 1. Educating voters is key to a successful campaign and hopefully this toolkit will prove beneficial in providing your members or audience with valuable information in advance of the August 5 election.
Proposal 1 addresses a long-standing double tax that has been a hindrance to building a competitive business environment in Michigan. For decades, Michigan’s small businesses have paid not only a 6 percent sales tax on all of their equipment, but also an annual Personal Property Tax that never goes away, no matter how old the equipment is. This tax has been eliminated by most states in the Midwest, making Michigan less attractive to new investment and jobs.
Site selectors have long cited the Personal Property Tax as one of the deterrents for investing here, unfairly putting Michigan businesses and manufacturers at a disadvantage nationwide. According to the Anderson Economic Group, the repeal of the Personal Property Tax would create 15,000 jobs, increase business investment in Michigan by $450 million and bolster business attraction efforts.
Proposal 1 also recognizes and supports the essential services that communities provide. It guarantees that municipalities will recuperate 100 percent of the funding lost due to the elimination of the tax and creates a more stable funding system for local services like police, fire, schools and parks.
Most importantly, Proposal 1 is not a tax increase. It is paid for by eliminating special tax breaks the Michigan legislature has voted to end, and by establishing a statewide Essential Services Assessment paid only by manufacturers receiving a Personal Property Tax reduction.
Again, the Chamber is grateful for your support and willingness to advocate on behalf of this critical issue.