Senate Finance Committee Passes Personal Property Tax Bills

Posted on December 12, 2012 by Dene Westbrook

LANSING, Michigan – Despite hearing numerous questions and concerns from the Michigan Municipal League and other organizations, the Senate Finance Committee Wednesday passed House Bills 6022 and 6024-26. These bills create the reimbursement scheme for the personal property tax repeal as outlined in the Lt. Governor’s plan.

The Lt. Governor’s plan includes allowing locals to levy an essential services assessment for police and fire services as well as diverting a portion of the currently assessed statewide use tax. The League has a number of concerns with the plans including its reliance on a statewide vote of the people to divert the use tax as well as concerns over the level of reimbursement.  In addition, the plan appears to be an administrative nightmare for our communities. The League raised these concerns during the Senate Finance Committee hearing Wednesday, but the group primarily voted along party lines (with Republicans in support) to move the bills along to the full Senate.

Please continue to contact your legislators and ask them for full and guaranteed replacement of personal property tax revenue, and ask them to oppose this legislation in lame duck until this happens. Today and, possibly, tomorrow are the final session days for the year. It is coming down to the end and we MUST keep the pressure on our legislators and remind them what these bills without full and guaranteed replacement will do to their communities!

Samantha Harkins is the Director of State Affairs for the League and handles municipal finance and labor issues. She can be reached at 517-908-0306 and sharkins at

Samantha Harkins and Anthony Minghine testify about the personal property tax issue Wednesday (Dec. 12, 2012) before the Senate Finance Committee.

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