December 26, 2012 – That Michigan’s personal property tax is being phased out is good. The tax, levied on industrial and commercial equipment, is cumbersome for cities to administer and for businesses to pay. But the impending demise of the PPT raises some larger questions — about the role of local government, how local services are funded, and what kind of business investment Michigan needs to attract. The reform package allows communities who get 2.5% or more of their revenue from PPT to get state reimbursement for up to 80% of lost revenue. Cities under the 2.5% threshold are out of luck. The elimination of a tax that was levied on commercial and industrial equipment will likely encourage investment in that equipment. That’s a good thing, but it’s hardly Michigan’s most urgent economic problem.
Link to Full Article: http://www.freep.com/article/20121226/OPINION01/312260017/1068/opinion