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: Family financing is anything but foolish

More information: closup.umich.edu/michigan-publ… 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

Family financing is anything but foolish

2 hours ago

Borrowing money from a family member or friend to start a business is often considered dangerous, both financially and emotionally, however new research conducted by an entrepreneurial expert at the University of Adelaide ...

The economics of age gaps and marriage

Oct 30, 2014

Men and women who are married to spouses of similar ages are smarter, more successful and more attractive compared to couples with larger age gaps, according to a paper from CU Denver Economics Assistant Professor Hani Mansour ...

Do financial experts make better investments?

Oct 28, 2014

Financial experts do not make higher returns on their own investments than untrained investors, according to research by a Michigan State University business scholar.

Lack of A level maths leading to fewer female economists

Oct 28, 2014

A study by the University of Southampton has found there are far fewer women studying economics than men, with women accounting for just 27 per cent of economics students, despite them making up 57 per cent of the undergraduate ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.