Lt. Gov. Calley signs bills so cities don't lose tax revenue
Wed, 02 Apr 2014 13:27:15 GMT —
Michigan Lt. Gov. Brian Calley has signed legislation designed to ensure local government budgets aren't hurt if manufacturers and small businesses get planned tax cuts.
A phase-out of taxes on industrial machinery starts in 2016 and is underway for small businesses with equipment. The tax cuts will be halted if a statewide vote fails in August.
Gov. Rick Snyder signed some of the bipartisan legislation Friday. Calley signed the others Tuesday because Snyder is on a European trade mission.
The bills incorporate a deal worked out among his administration, municipalities and business leaders to fully reimburse cities for their lost personal property tax revenue with other state revenue.
The Republican governor calls the tax "dumb" and says it's a disincentive for businesses to come to Michigan.