89.1 WEMU

Michigan Primary-Referendum

Aug 5, 2014

Michigan voters deciding fate of business tax cut  

Michigan voters will decide the fate of a years-long effort to end a state tax on manufacturing and small business equipment. 

Proposal 1 is the only statewide question on Tuesday's ballot. It would reimburse local governments for their lost personal property tax revenue by sharing a portion of the state's use tax. 

The personal property tax is paid by businesses and manufacturers and is based on the value of their machinery, office furniture and equipment. Some Michigan communities rely on the tax revenues to pay for basic services. 

State lawmakers already have voted to repeal the tax on small businesses and manufacturers, but the issue still needs voter approval. The measure has no organized opposition, but has caused confusion among many voters, leaving its fate uncertain. 

If voters don't approve the proposal, the laws passed by the Legislature will be halted.