Personal Property Tax could end with ballot proposal

moneyMichigan voters will have a chance to drive the final nail into the coffin of the state’s old Personal Property tax.

Businesses pay the tax based on the value of their equipment and other assets. Many Michigan communities rely on the tax revenues to pay for basic city services.

State lawmakers already voted to repeal the tax and replace the revenues local governments would lose with a portion of the state’s Use Tax.

But voters have to approve the change for it to take effect.

Tim Dye is the spokesman for the group backing the ballot question.

“Yes it has been in the works for a while. But this ballot proposal is required … voters must approve the change in taxation as how our local communities are funded,” said Dye.

The ballot language could confuse some voters. So backers of the measure plan a grassroots effort ahead of the August Fifth election to explain the change.