LANSING – In an effort to spur investment, create good-paying jobs and get Michigan's economy back on track, State Representative Bob Constan (D-Dearborn Heights) today passed a plan to slash the Personal Property Tax for businesses.
"Rewarding companies that invest in Michigan and provide jobs for our workers is a wise way to do business," Constan said. "This plan will help make Michigan a magnet for businesses looking to expand or relocate and create more jobs here in Michigan. The more we reward companies, the more they will invest in our state."
Under the plan to cut the Personal Property Tax, manufacturers will see an average cut of 67 percent; commercial businesses will see an average cut of 23 percent.
Reducing the Personal Property Tax is just one part of the House Democrats' Michigan Business Tax plan, which will:
- Provide over $600 million in new tax credits that reward Michigan businesses for investment, compensation, and research and development.
- Boost job creation by providing credits for investment in Michigan and for Michigan payroll.
- Help small businesses by exempting companies with less than $350,000 in gross receipts from taxation. Businesses with up to $20 million in gross receipts will pay reduced rates. The plan also enhances existing small-business tax credits.
- Protect education, health care, police and fire protection, and other essential services by ensuring revenue-neutrality.
"This plan will help rejuvenate our economy and create more jobs for our workers," Constan said. "Establishing a business-friendly environment in our state clears a major obstacle on Michigan's road to recovery."