LANSING – In an effort to spur investment, create good-paying jobs and get Michigan's economy back on track, the Michigan House today passed a plan to slash the Personal Property Tax for businesses.
"Cutting the Personal Property Tax rewards companies that invest in Michigan and create jobs," said State Representative Mike Simpson (D-Liberty Township). "Our plan also helps small businesses by offering them reduced tax rates. It's the right thing to do to get Michigan's economy back on track."
Under House Bill 4372, which Simpson co-sponsored, 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.