The state Senate has approved a bill that would compensate Michigan cities, towns, and counties if a tax on business equipment is repealed.
The Michigan Public Radio Network’s Jake Neher reports.
The Personal Property Tax is widely unpopular. But Michigan communities depend on it to pay for things like police, fire, and snow plowing. Without the tax, many already cash-strapped communities could have a hard time providing basic services to residents.
The legislation calls for the state to make up the lost revenue to local governments.
Some lawmakers worry the state won’t make good on that promise.
But state Senator Rebekah Warren doesn’t think that’s the case.
“The bills are actually very clear in laying out what the revenue per year is going to be,” she says. “And so I felt pretty confident with the kind of support that this package had that the revenue will be there for our locals.
The legislation cleared the Senate with overwhelming bipartisan support. It now goes to the state House.