Senate Bill Would Cut Local Personal Property Taxes; Contact Your Senator to Oppose

Posted on May 10, 2018 by Dene Westbrook

A new bill, recently introduced in the Senate would fully exempt all heavy mobile construction equipment, like cranes and earth movers, from local tax bases.

Senate Bill 927 was reported this week from the Senate Finance committee despite opposition testimony from the League and the Michigan Townships Association.  The bill would impact all qualified equipment starting in 2018, exempting it from taxation by the local unit, with no reimbursement to local units of government.

The League testified to the fact that the current eligible manufacturing personal property exemption is still in the process of being implemented and it would be inappropriate to start exempting other types of equipment, especially without providing adequate reimbursement to those local units who rely on property tax revenue as their main source of budget revenue.  Advocates for the legislation testified that they believe this exemption will only cost local governments $6-8 million statewide.  Treasury joined the League in opposing the bill.

The legislation is now on the Senate floor where it could receive a vote before the summer recess.  League members are urged to contact their State Senator and ask them to oppose the bill.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and [email protected].





1675 Green Road,
Ann Arbor MI 48105
Capitol Office
208 N. Capitol Ave.,
1st Floor Lansing, MI 48933
©2022 Michigan Municipal League LLC. All rights reserved