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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Personal Property Tax On Table?

    By JGillman, Section News
    Posted on Mon Aug 15, 2011 at 11:10:49 AM EST
    Tags: Calley, Snyder, MBT, PPT, Personal Property Tax, Property Tax, Business Tax, Punititive Ownership, Equipment, Business, Michigan, Local Government (all tags)


    As many business owners understand, there is "property tax" and there is "property tax".  And while the two seem to be quite similar, the difference is how one is handled over the other.

    Property tax as we all recognize is the repeated taxation on real property (acreage, land, buildings) which is used in a number of different formulas and provides a basis for government funding, millages for special purposes, and has for so many years until recently been a boon for local governments who would rather grow more services, than cut taxes on the increased value added properties.  It is regressive, in that it discourages ownership, and puts at risk those on fixed incomes.  Property tax on real property as it stands is already bad enough, yet has funded state and local government expansion to a point that any contraction in values puts at risk those things necessary and proper.

    But "Property Tax", as in PERSONAL Property tax or INDUSTRIAL property tax, is something even more sinister. In 2007, I wrote:

    "For some of us, the process is mostly painless financially; A couple of desks, computers, a few inventory racks.. But for quite a few Job creators, it can make a profitable year much less so with equipment that costs hundreds of thousands for manufacturing processes etc..

    Again, Michigan needs to re-visit the idea of eliminating these regressive policies which hamstring our ability to be more productive and provide for our OWN families, much less those who feed off of the generosity of Michigan taxpayers through the force of Michigan government. (more to follow on this)"

    All equipment bought for use in your business is taxable at the time of purchase.  Then it is taxable when you use it, repeatedly, like real property tax.  It is assessed a little differently, and relies for the most part on voluntary inventory declaration of business assets. (though larger businesses might have a personal visit from an assessor around Dec 31) It creates a level of work for the business owner that can be complicated depending on the quantity of business useable assets.  It also creates a great deal of work for township assessors who must peruse the minutia (if they are doing the job properly) and properly report to the state the value of those assets and amounts collected.

    Often it becomes a whole lot of work for very little benefit, if anything at all.

    ~ More Below ~

    In fact, the return in some instances is questionable. But questionable assessments are hardly rare in the world of government high finance and citizen's savings procurement.  Even from just adding on to the plain ol property taxes it shows a desperation to reach into our pockets.   I posited on the issue in 2008 that I had discovered locally when finally I got around to taking care of the business PPT:
    "Oh wait.. it gets worse..

    There was a relatively new addition to the law..  NOW Mobile homes in trailer parks have a new burden.  Previously Mobile home property taxes had a simple "fixed" property tax (like $4.. or something ) based on the park paying property taxes and burying that in the rent anyhow.  The NEW tax is on additions (porches) and outbuildings. The state legislators in their rush to collect taxes from any source they feel has something to give, didnt realize the cost of compliance.

    Our assessor spent  2 months with PAID assistance (that means township paid labor for those of you who are the House democrat leader in Michigan) prowling the township to determine which trailers had assessable property attached. The grand total of taxes collected for the 2 months worth of intensive search? <insert Drumroll here please>


    Yeah, I took issue that local government was being forced to remain inefficient.  That was surely "bang for the buck" if I must opine.  Not.

    The good news however, is that Calley and Snyder are actually looking at the personal property tax issue with eyes open.  I will applaud their decision to do so:

    "Proponents of eliminating the levy say it discourages business investment and growth and makes Michigan uncompetitive.

    "It's a disincentive to place productive equipment in Michigan," said Lt. Gov. Brian Calley, who is spearheading development of a proposal expected to emerge this fall.

    "It's not a system I want to fix; it's a system I want to get rid of." "


    And even in the face of another hit to local governments (which Calley says will be handled) its the right thing to do.  Some of those governments might find the returns in restoration of simplicities to be rewards in themselves.

    How many times must we pay for something?  Ownership is one of the constitutional tenets that the country was founded upon.  Without the ability to own free and clear, that which you have earned, why bother in the first place?  Land and housing has a (albeit marginal) place in the scheme, with regard to fire and police and infrastructure taxing, but things?  Job creating tools?

    Why would anyone want to locate them here? One wonders how we survived Granholm at all, frankly.  It was bad enough that the MBT was a job killer.  Add to it a liability for those who have the nerve to locate their pricey machinery in this state.

    A liability assessed yearly, and without regard to the financial shape or cash flow of the business which owns it.

    I applaud the legislative efforts made in throwing out this poorly considered part of our taxing mechanism.  The brackish bathwater surrounding it demonstrates well that the drain could not be opened quickly enough or wide enough.

    < A Republic ... If You Can Keep It | 2012 GOP Presidential Primary Race . . . Ames Aftermath >

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    One small step foreward, ... (none / 0) (#1)
    by Corinthian Scales on Mon Aug 15, 2011 at 11:50:09 AM EST
    ... massive step back.

    LANSING (WKZO) -- Governor Rick Snyder could get a new bridge built between Detroit and Windsor, Ontario without the approval of state lawmakers.  That's the opinion of Lieutenant Governor Brian Calley, who says there are several ways the state can move forward to build the new span.

    The Canadian government is offering more than 500-million dollars for the project, and officials say that money could be used to get federal matching funds from Washington.  Former Governor John Engler told MIRSnews.com bypassing the Legislature is the only way he thinks the new bridge will be built.

    Fluff pieces for the Snyder Administration don't impress me in the least.  And fat John is back at it again with this damn bridge?  They're all just tax-shift and spend Corporatist GOP.

    For a party that purportedly stood for small gov't (none / 0) (#4)
    by KG One on Mon Aug 15, 2011 at 03:34:04 PM EST
    this issue should be a no-brainer.

    In situations like this, I like to follow the KISS-principle.

    No, not "Rock and Roll All Night and Party Every Day".

    The other-KISS Principle: Keep it simple, stupid!

    Enough with the rules that change with the political winds.

    You're got a majority in the legislature...use it! Wipe out that other property tax altogether and just replace it with a flat tax on income period!

    Tie-bar it with the state income tax rate so there's no funny business.

    The efficiencies gained with eliminating the time wasted in compiling data on property by gov't, (and businesses), should offset the cost to the state monitoring compliance.

    And as for the guv bypassing the legislature?

    Correct me if I'm wrong, but Article IV § 30 addresses that matter rather clearly.

    Unless the guv is looking at getting impeached, rather than recalled, he'd best layoff any delusions he has of being back at Gateway. I'm pretty certain that engaging in flat-out unconstitutional actions like bypassing the legislature altogether are actionable.

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