By Rob Fowler, President and CEO
SBAM reminds you that Proposal 1 is on the Aug. 5 ballot. It’s an important initiative that will help local small businesses and the communities in which they’re located across Michigan.
Absentee ballots will go out soon, and if you vote absentee, we urge you to learn more about Proposal 1 and to vote YES on your ballot.
This proposal would create 15,000 jobs in Michigan by eliminating the personal property tax on small businesses. Businesses must pay this tax every year on every piece of equipment they own, which is unique to Michigan and puts our state at an economic disadvantage when competing for new businesses and jobs. This proposal would immediately eliminate the personal property tax on small businesses and phase it out over nine years for larger businesses.
Many communities rely on revenue from the personal property tax to fund local services like police, fire, ambulances, jails, roads, schools, parks and libraries even though it is an unreliable revenue source. This referendum guarantees that 100 percent of the money a community loses from the elimination of the personal property tax will be replaced using the more stable State Use Tax.
This proposal is not a tax increase – for anyone. It is paid for by eliminating special corporate tax breaks that the legislature has voted to end, and by establishing a statewide Essential Services Assessment paid only by manufacturers receiving a personal property tax reduction.
Remember – if you plan to vote absentee, learn more about Proposal 1 at www.StrongAndSafeCommunities.com and vote YES on your ballot.