Business Equipment Tax Repeal Bills Sail Through State House
Local leaders in Michigan are applauding the state House for approving legislation to make sure they don’t lose big because of a recent tax repeal.
We have more from The Michigan Public Radio Network’s Jake Neher.
Local governments depend on a widely unpopular tax on business equipment to provide basic services to residents. The legislation seeks to make sure they’re fully compensated if the tax is permanently repealed.
Republican state Representative Jeff Farrington says that would be a win-win for businesses and Michigan communities.
“Michigan has been improving our capabilities to create jobs, and this package of bills are a critical step along that road back to prosperity,” he says.
Under the plan, the state would use money from expiring tax credits to help make up for the lost tax revenue. It would also give local governments a bigger share of the tax it levies on out-of-state purchases. Michigan voters would be asked to approve the plan in August.