Snyder signs bills so MI cities don't lose revenue
Sat, 29 Mar 2014 00:27:51 GMT —
Michigan Gov. Rick Snyder has signed legislation designed to ensure local government budgets aren't hurt if manufacturers and small businesses get planned tax cuts.
A phase-out of taxes on industrial machinery starts in 2016 and is underway for small businesses with equipment. The tax cuts will be halted if a statewide vote fails in August.
The bipartisan legislation Snyder signed Friday incorporates a recent deal worked out among his administration, municipalities and business leaders to fully reimburse cities for their lost personal property tax revenue with other state revenue. The Republican governor calls the tax "dumb" and says it's a disincentive for businesses to come to Michigan.
Snyder and legislators in 2012 phased out the taxes but left unresolved a way to ensure counties, cities and townships are made whole.