CHICAGO — The mayor of Warren, Mich., said he has filed a lawsuit seeking to overturn a ballot proposition passed last week that will phase out the state's personal property tax.
Warren Mayor Jim Fouts said he directed the city's attorney to file a lawsuit in the Michigan Court of Claims on Aug. 8. He said he paid the $150 filing fee out of his own pocket and the city attorney donated his time.
Revenue from the personal property tax goes to local governments. Ballot Proposition 1 focused on replacement revenue, which will be generated by diverting a piece of the state's use tax. Fouts argued that the language was skewed to encourage voters to pass the proposition, and that it was "confusing," "one-sided," and "blatantly unlawful."
"State of Michigan law is crystal-clear prohibiting slanted ballot language for any proposal," he said in a news release.
Warren, located in Macomb County, could lose $10 million or more a year due to the repeal of the personal property tax, levied on large equipment owned by businesses and manufacturers, according to Fouts.