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Why small business owners should support a YES vote on Aug. 5 to eliminate the Personal Property Tax

May 5, 2014

By Rob Fowler, President and CEO

Small Business Association of Michigan

SBAM is proud to support Michigan Citizens for Strong and Safe Communities’

campaign to protect local community services and help small businesses create

jobs – without increasing taxes for anyone.

This important proposal to help local businesses and the communities in which

they’re located will be on the August 5 primary ballot across Michigan. We

encourage you to learn more about this proposal and to vote YES in August.

This proposal would create 15,000 jobs in Michigan by eliminating the personal

property tax on small businesses. Businesses must pay this tax every year on

every piece of equipment they own, which is unique to Michigan and puts our

state at an economic disadvantage when competing for new businesses and jobs.

This proposal would immediately eliminate the personal property tax on small

businesses and phase it out over nine years for larger businesses.

Many communities rely on revenue from the personal property tax to fund local

services like police, fire, ambulances, jails, roads, schools, parks and libraries even though it is an unreliable revenue source. This referendum guarantees that 100 percent of the money a community loses from the elimination of the personal

property tax will be replaced using the more stable State Use Tax.

This proposal is not a tax increase – for anyone. It is paid for by eliminating special corporate tax breaks that the legislature has voted to end, and by establishing a statewide Essential Services Assessment paid only by manufacturers receiving a personal property tax reduction.

We strongly encourage you to sign up for Michigan Citizens for Strong and Safe

Communities’ email alerts at www.strongandsafecommunities.com to receive

updates from this important campaign to strengthen Michigan communities and

help local small businesses create jobs.

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