On Tuesday, April 17, 2012, the State Senate introduced a reform package for the Personal Property tax. Over the next several weeks the State Senate Finance Committee will meet to review and discuss the plan. As the package currently stands, the following changes are being proposed:
- Eliminate Michigan’s Personal Property tax for commercial and industrial businesses that have under $40,000 of taxable property in the same jurisdiction.
- Properties that are in certain enterprise zones, as well as, technology park developments that qualify for an abatement, will still qualify for relief until they become exempt under this new plan.
- Starting in 2015, “qualified new personal property” purchased after December 31, 2011, that meets the definition of “eligible manufacturing personal property”, will be exempt.
- Also starting in 2015, qualified new personal property that is over 10 years old will be removed from the books. A seven year phase out will begin after 2015 to eliminate qualified industrial property purchased between 2005-2011.
- Michigan’s Treasury will be instructed to create a Personal Property Tax Reimbursement Fund that will refund 81% of funds lost to local governmental units.
What do you think about the latest reform that has been proposed? Visit facebook.com/hscompanies to voice your opinion or ask questions for one of our tax professionals to answer.