CHICAGO — Michigan voters in August will decide whether to eliminate the state's personal property tax, a central source of revenue for many local governments.

Proposed by Gov. Rick Snyder, the Legislature passed a bill last year that will eliminate the tax if voters approve the move.

The personal property tax is levied on large equipment, and the revenue goes directly to local governments. It will hit those cities and towns with large manufacturing sectors particularly hard, experts say. Other governments may not suffer at all from the loss.

After months of lobbying by local officials, lawmakers agreed to replace at least part of the lost revenue by tapping a piece of state's use tax.

The Board of Canvassers voted May 21 to put the issue on the Aug. 5 ballot as Proposal 1.

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