After many changes to the business tax last year, elimination of the industrial Personal Property Tax (PPT) stands as our top priority. Since other states have already eliminated similar taxes on manufacturing equipment and machinery, Michigan’s PPT remains a competitive barrier. While most businesses will see substantial tax reductions under the new Corporate Income Tax (CIT), many manufacturers will see increases and loss of the 35% offset under the new CIT further increases the tax burden. To keep Michigan competitive for retaining current manufacturing investment and attracting new investment, the PPT must be eliminated quickly.

Michigan manufacturers support a responsible plan to phase out the PPT, balanced with revenues sufficient to maintain viable local communities and services. MMA is pleased that the Governor, the House and the Senate have identified elimination of the PPT on their priority lists and several bills have been introduced in both chambers.

MMA Position: Michigan’s personal property tax is the most significant economic barrier to attracting and retaining manufacturing investment in Michigan. Elimination is MMA’s top priority.