PPT elimination clears first legislative hurdle
May 5, 2012
After many hours of testimony, the Senate Finance Committee this week approved legislation that would phase out the industrial Personal Property Tax (PPT) and drastically cuts levies on commercial property as well. The vote on each of the eight bills was, 5-2, which was split along party lines.
Opponents of the legislation, primarily local units of government, have pushed for a constitutional amendment guaranteeing a replacement for the $450 million in lost revenue, something Senate Republican aren’t interested in. Senate Majority Leader Randy Richardville has stated several times in the past weeks that it is his intention to pass the package before summer break. A vote could take place as early as next week, some sources have indicated.
SBAM President and CEO Rob Fowler addressed the Senate Finance Committee this week, testifying that elimination of the Personal Property Tax is the next key step on the path of Michigan’s economic recovery. Fowler stated that the corporate income tax passing last year was critical to “repositioning” Michigan. He argued that it didn’t help big business or oil companies, but primarily helped small businesses. “I’d like to offer you some encouragement that you’re on the right track,” he said. “A growing economy solves a lot of problems that we’ve been facing over the last decade” adding that he was “very, very optimistic about our state economic trends today.”
Fowler also referred to the Entrepreneurship Scorecard and Michigan Jobs Insight project in his testimony to showcase the positive direction Michigan’s economy is heading partially as a result of the reform efforts made in the legislature thus far.