Proposal 1 Makes Michigan Competitive, Keeps Communities Strong
Posted by Lake Superior Community Partnership on July 15, 2014
For decades, Michigan businesses have paid a double tax known as the Personal Property Tax. This regulation requires businesses to pay an annual tax on all of their equipment, no matter how old it is, in addition to the 6 percent sales tax paid at the time of purchase.
While most states in the Midwest have either repealed or reduced their Personal Property Tax, Michigan hasn’t, making the entire state less attractive to new jobs and investment and putting businesses at an immense competitive disadvantage.
This tax hasn’t just been a deterrent to economic growth. Communities also depend on the tax to fund essential services, but the revenue is often unpredictable and unreliable, making it difficult to budget and allocate effectively.
This is why the Lake Superior Community Partnership is supporting Proposal 1, a bipartisan statewide referendum that will not only eliminate Michigan’s personal property tax, but also create a more stable funding system that communities can rely on to support local services like police, fire, parks and schools, without raising taxes on anyone.
Proposal 1, if passed, will provide an immediate boost to the Michigan economy, creating 15,000 jobs and generating $450 million in business investment. Furthermore, it guarantees that 100 percent of all revenue lost due to the elimination of the tax will be replaced, and that community funding remains strong and stable.
On August 5, Michigan businesses and communities need you to vote “Yes” on Proposal 1.
