Bills Would Make Sure Local Government Budgets Don’t Get Slashed With Tax Repeal

Feb 25, 2014

New legislation in Lansing would make sure local governments don’t take a big hit if voters decide to repeal a tax on business equipment.

Lt. Gov. Brian Calley is championing the legislation as a ‘win-win’ for communities.
Credit mprn Jake Neher

We have more from The Michigan Public Radio Network’s Jake Neher.

Lawmakers are urging voters to repeal the tax in August. They say it’s outdated and kills jobs. But cities, towns, and counties depend on the tax to provide basic services to residents. The new bipartisan legislation would require the state to compensate communities for the loss.

Lieutenant Governor Brian Calley says businesses would get a much needed tax break and local governments would get a more steady and reliable source of revenue.

“I think what we’ve landed today is a true win-win,” he says.  “You don’t get too many of those in this town.”

Calley says the state would use an expected “windfall” from expiring tax credits to help pay for the repeal. The state Senate could vote on the bills this week.