LANSING— Sen. Mike Nofs told the Senate Finance Committee today that eliminating the state’s personal property tax must be included as part of reforming the tax code and spurring economic development in Michigan.
“I believe we must look at Michigan’s entire business tax structure. Simply repealing or re-vamping the Michigan Business Tax is not enough. We must take this historic opportunity to truly analyze what is in the best long-term interest of our state,” said Nofs, R-Battle Creek. “This bill is designed to ensure that repeal of the personal property tax is part of that broader discussion.”
The panel heard testimony today on Senate Bill 34, sponsored by Nofs, which would repeal personal property from the state’s General Property Tax. Among items currently taxed as personal property are: commercial equipment, furniture, industrial machinery and certain agriculture equipment and produce.
“We must look for ways to help improve our business climate and spur business growth, investment and job creation,” Nofs said. “Unfortunately, the Personal Property Tax does just the opposite. Instead of sending a thank you note to companies that invest in new equipment and technology, we send them a tax bill.”
Nofs added: “I am well aware of the potential revenue impact this legislation could have on schools and local units of government if it were to be enacted as a stand-alone bill. But this is intended to be part of a larger discussion, much of which will begin in earnest after the governor releases his budget next week. I ask folks to take a breath and agree to work with us in this process.”
Joe Dunigan, president of Dunigan Bros. in Jackson, MI, testified in support of Nofs’ bill.
Editor’s Note: A photograph of Nofs and Dunigan testifying on the bill is available at: http://www.MISenateGOP.com/senators/photowire.asp?District=19.