The first hearing will be held today on a Republican plan to phase out taxes on most industrial equipment in Michigan.
Local governments collect about $400 million in revenue a year from the industrial property tax.
Lieutenant Governor Brian Calley helped design the plan to get rid of the tax over the next several years. He says Michigan is unique in how it taxes industrial property -- and he says it’s driving investments to other states and countries.
"So, at the end of the day, it's about jobs and removing the penalty for investing in Michigan," Calley says.
But local leaders say the way the phaseout is drafted now, it would force disinvestment in schools, and city services. That’s because it does not replace all the revenue lost to local governments. The communities that would be most affected are the ones with the most factories.