Support Proposal #1: Michigan Citizens for Strong and Safe Communities

The Michigan Business  and Professional Association (MBPA) and the Michigan Food and Beverage Association (MFBA) both support Proposal #1 on this year’s 2014 election ballot and are part of the Michigan Citizens for Strong and Safe Communities coalition.

About the proposal:

Currently in Michigan, all businesses must pay a personal property tax on every piece of equipment they own. So not only do small businesses pay the six percent sales tax when they purchase equipment, they also pay a personal property tax for every year that they OWN the equipment.  The tax level on business personal property is unique to Michigan and has put the 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 the money raised by the personal property tax to help fund services like education, police, fire and ambulance services 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.

The referendum, on the August 5, 2014 ballot, is not a tax increase.  It is paid for by eliminating special corporate tax breaks 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 encourage you to voice your support and vote YES this August 5th, 2014 on Proposal #1!  Please visit the coalition’s website for more information: www.StrongAndSafeCommunities.com