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.