A state Senate panel voted along party lines for a plan to phase out Michigan’s tax on most industrial equipment.
The full Senate is expected to debate and vote on the proposal in the next week or two.
The stage is now set for a partisan battle that pits Republicans against Democrats, and local governments against manufacturers.
State Senate Majority Leader Randy Richardville says phasing out the tax on industrial equipment will encourage more manufacturers to grow or locate in Michigan.
“I’m excited about it because that is, I think, one of the last punitive taxes that Michigan has that most other states, especially those in the Midwest, don’t have,” he says.
Summer Minnick is with the Michigan Municipal League.
“People will pick up the tab for this business tax cut,” she says.
She says that’s because people will see increases in their city, township, county or school district tax bills to make up for the loss of revenue. She wants an amendment that would guarantee the revenue is replaced – Republicans say that’s not an option.