Detroit Big 3 Looks for Tax Break if Snyder Tosses Personal Tax - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Detroit Big 3 Looks for Tax Break if Snyder Tosses Personal Prop. Tax


Local governments collect the personal property tax from businesses and use the $800 million to pay for police and fire protection, but Governor Snyder wants to eliminate the ppt with the promise to replace about 90 percent of the revenue to the local governments.

Snyder hints at a deal but wont release the details.

"I think you may see some coming out and being fairly open about some good ideas to talk about, still this year," Snyder says.

Here is the deal:

  • 6 percent use tax
  • 1.5 percent from that
  • Give to cities
  • Avoid legislature

The cities did not want to ask the legislative budget committees for the replacement money every year because future lawmakers might not allocate it. So the Michigan Municpal League, likes the governor's idea of taking it out of that process.

The Detroit three and other major manufactures got no tax relief when the governor invented a new business tax. The PPT relief, therefore, becomes a windfall for them.

"Reducing the personal property tax, reducing the tax burden on manufacturing helps the overall business climate in Michigan," said Ken Sikemma, senior policy fellow.

The Lt. Governor is now shopping this proposal to all the players and there is hope of moving it through a house committee pershaps as early as this month.

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