Proposal One

At its July 22nd, 1:30pm meeting at 12220 Fillmore in West Olive, the Ottawa County Board of Commissioners is expected to adopt a resolution, officially voicing its support for Proposal One. On the Michigan ballot for August 5, Proposal One would eliminate personal property tax levied on manufacturing businesses and provide a stable funding replacement for local government services including police, fire and other essential needs.

While the bill has widespread support from organizations and businesses alike, complicated ballot language (below) has leaders uneasy as it is placed before the voters on August 5.

  • A “yes” vote on Proposal One would eliminate the personal property tax, a tax levied only on business equipment that is argued to limit growth and job expansion.
  • A “yes” vote on Proposal One would provide stable replacement funding for Ottawa County and other local units of government, separate from the annual appropriation process of Lansing. In Ottawa County, this represents $2.6 million of the general fund.
  • A “yes” vote on Proposal One does not raise taxes on anyone, but is paid for by eliminating corporate tax loopholes and establishing a new statewide essential services assessment that is only paid by manufacturers that receive the Personal Property Tax reduction.

Al Vanderberg, Ottawa County Administrator, and a member of the West Michigan team that worked with Lt. Governor Calley on the reform commented, “This is perhaps the best example of a ‘win-win’ solution that I have seen in 30 years of local government management. Manufacturing businesses will see a tax decrease, no one has their taxes increased, and essential public services provided by city, township, village and county government stay at full funding.”

If the resolution is adopted, the Ottawa County Board of Commissioners will join many groups who also support this proposal including: the Michigan Municipal League, The Michigan Townships Association, the Michigan Association of Police Chiefs, Michigan Community College Association, Michigan Farm Bureau, the Small Business Association of Michigan, Michigan Sheriffs Association, Michigan Chamber of Commerce, The National Association of Independent Businesses, Michigan Manufacturing Association and many others.

More information about Proposal One can be found at http://www.strongandsafecommunities.com.


Ballot Language:
PROPOSAL 14-1
APPROVAL OR DISAPPROVAL OF AMENDATORY ACT TO REDUCE STATE USE TAX AND REPLACE WITH A LOCAL COMMUNITY STABILIZATION SHARE TO MODERNIZE THE TAX SYSTEM TO HELP SMALL BUSINESSES GROW AND CREATE JOBS
The amendatory act adopted by the Legislature would: 1. Reduce the state use tax and replace with a local community stabilization share of the tax for the purpose of modernizing the tax system to help small businesses grow and create jobs in Michigan. 2. Require Local Community Stabilization Authority to provide revenue to local governments dedicated for local purposes, including police safety, fire protection, and ambulance emergency services. 3. Increase portion of state use tax dedicated for aid to local school districts. 4. Prohibit Authority from increasing taxes. 5. Prohibit total use tax rate from exceeding existing constitutional 6% limitation. Should this law be approved?
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