Most local leaders say personal property tax is complex, but important to their budgets

Nov 20, 2012

A majority of Michigan's local government leaders believe revenue from the personal property tax is important to their budgets, according to a University of Michigan survey.

The Michigan Personal Property Tax is assessed on businesses for their property such as equipment, furniture and computers, and raises revenue in nearly every local jurisdiction.

The tax has been a target of tax reform in Michigan among those who argue that its complexity makes it burdensome for both businesses and , and that it discourages economic development by penalizing business investments.

of the state may be a factor in .

"More than two-thirds of local leaders tell us they don't trust the state government to follow through on commitments it might make to replace lost personal property tax revenues," said Tom Ivacko, who oversees the poll by the U-M's Ford School of Public Policy.

The poll, part of the Michigan Public series at the Ford School's Center for Local, State, and , reports that:

  • Among jurisdictions that report receiving the revenue, 51 percent say that the funds are important for their budgets. This increases to 83 percent of the state's largest jurisdictions.
  • At the same time, many local leaders believe the tax has significant drawbacks. Despite those drawbacks, 46 percent of local leaders whose jurisdictions receive the revenue believe the funding is worth the difficulties the tax presents, compared to just 30 percent who feel the opposite.
  • Nearly three-quarters, or 74 percent, of affected local leaders would support elimination of the tax if the state replaces the revenues in full. Support drops sharply to 44 percent of leaders if the state were to replace most, but not all, of the revenue.
The study, conducted April 9 to June 18, involved surveys sent via hardcopy and the Internet to top elected and appointed officials in all counties, cities, villages and townships in Michigan. A total of 1,329 jurisdictions returned valid surveys, resulting in a 72-percent response rate. The survey had a margin of error of 1.43 percentage points either way.

Explore further: Study looks at stock market performance of polarizing brands

More information: closup.umich.edu/michigan-public-policy-survey/21/local-leaders-support-eliminating-michigans-personal-property-tax-if-funds-are-replaced-but-distrust-state-follow-through

add to favorites email to friend print save as pdf

Related Stories

SD panel OKs tax break for small energy projects

Jan 20, 2010

(AP) -- Property tax breaks will be awarded for investments in small renewable energy projects, a South Dakota legislative committee decided Wednesday, despite concerns that the exemptions would result in less revenue for ...

Recommended for you

Which foods may cost you more due to Calif. drought

11 hours ago

With California experiencing one of its worst droughts on record, grocery shoppers across the country can expect to see a short supply of certain fruits and vegetables in stores, and to pay higher prices ...

Performance measures for CEOs vary greatly, study finds

Apr 16, 2014

As companies file their annual proxy statements with the U.S. Securities and Exchange Commission (SEC) this spring, a new study by Rice University and Cornell University shows just how S&P 500 companies have ...

Investment helps keep transport up to speed

Apr 16, 2014

Greater investment in education and training for employees will be required to meet the future needs of the transport and logistics industry, according to recent reports by Monash University researchers.

User comments : 0

More news stories

Newlyweds, be careful what you wish for

A statistical analysis of the gift "fulfillments" at several hundred online wedding gift registries suggests that wedding guests are caught between a rock and a hard place when it comes to buying an appropriate gift for the ...

Can new understanding avert tragedy?

As a boy growing up in Syracuse, NY, Sol Hsiang ran an experiment for a school project testing whether plants grow better sprinkled with water vs orange juice. Today, 20 years later, he applies complex statistical ...

Roman dig 'transforms understanding' of ancient port

(Phys.org) —Researchers from the universities of Cambridge and Southampton have discovered a new section of the boundary wall of the ancient Roman port of Ostia, proving the city was much larger than previously ...

Crowd-sourcing Britain's Bronze Age

A new joint project by the British Museum and the UCL Institute of Archaeology is seeking online contributions from members of the public to enhance a major British Bronze Age archive and artefact collection.

Hackathon team's GoogolPlex gives Siri extra powers

(Phys.org) —Four freshmen at the University of Pennsylvania have taken Apple's personal assistant Siri to behave as a graduate-level executive assistant which, when asked, is capable of adjusting the temperature ...

Deadly human pathogen Cryptococcus fully sequenced

Within each strand of DNA lies the blueprint for building an organism, along with the keys to its evolution and survival. These genetic instructions can give valuable insight into why pathogens like Cryptococcus ne ...

Researchers discover target for treating dengue fever

Two recent papers by a University of Colorado School of Medicine researcher and colleagues may help scientists develop treatments or vaccines for Dengue fever, West Nile virus, Yellow fever, Japanese encephalitis and other ...