The Michigan Senate last week passed a package of bills that would repeal the personal property tax, but the controversial measure faces a more uncertain fate in the House, which likely won’t even consider the bills until the fall.
Proposed by Gov. Rick Snyder, the legislation has sparked strong opposition among local governments. Nearly all personal property tax collections benefit local governments and school districts.
Opponents, including the Michigan Municipal League, want a constitutional amendment that would require the state to replace the lost revenue, estimated to total $470 million by 2020. The personal property tax applies to equipment and machinery, as opposed to real property tax, which applies to land.