LANSING – In an effort to spur investment, create good-paying jobs and get Michigan's economy back on track, House Democrats today passed a plan to slash the Personal Property Tax for businesses.
"Cutting the Personal Property Tax sends a strong signal to our businesses that they will be rewarded when they invest in our state and our workers," said House Speaker Andy Dillon (D-Redford Twp.). "We cannot afford to punish companies that build factories in Michigan or locate their headquarters here. Slashing the Personal Property Tax rewards our businesses that invest in our future here in Michigan."
Under the plan to cut the Personal Property Tax, manufacturers will see an average cut of 67 percent; commercial businesses will see an average cut of 23 percent.
Reducing the Personal Property Tax is just one part of the House Democrats' Michigan Business Tax plan, which will:
- Provide over $600 million in new tax credits that reward Michigan businesses for investment, compensation, and research and development.
- Boost job creation by providing credits for investment in Michigan and for Michigan payroll.
- Help small businesses by exempting companies with less than $350,000 in gross receipts from taxation. Businesses with up to $20 million in gross receipts will pay reduced rates. The plan also enhances existing small-business tax credits.
- Protect education, health care, police and fire protection, and other essential services by ensuring revenue-neutrality.
"Cutting the Personal Property Tax rewards our companies that invest in Michigan and create jobs for our workers," said State Representative Kate Ebli (D-Monroe), the lead sponsor of the bill. "The more we reward our companies, the more they will invest in our state. This is the right thing to do for our businesses as we fight to get Michigan's economy back on track."