A move to eliminate Michigan’s personal property tax would likely drive up real property taxes, a coalition of public school leaders warned last week.
Of the state’s 552 local school districts, 425 could raise their millage rates to offset losses from personal property tax decreases, officials said.
Lawmakers are debating a bill, supported by Gov. Rick Snyder, to eliminate or phase out the personal property tax, levied on machinery and equipment.
The bulk of the tax revenue goes to local governments, which are fighting for a provision that would require the state to replace the lost revenue, estimated at $470 million by 2020.
“This bill will cause automatic tax increases,” an Oakland County school official told local reporters.
