A recent Michigan Supreme Court ruling in favor of IBM in a corporate tax case could have “budget-busting” impact, the AG says.
Big business has spent nearly $7 million promoting Proposal 1 in the last few weeks, even though there’s no organized opposition.
Proposal 1, the only statewide question on the Aug. 5 ballot, would end a tax on manufacturing and small business equipment.
The business tax cuts were enacted by Gov. Rick Snyder and legislators at the end of 2012 but will be halted if a statewide vote fails in August.
Legislation aiming to eliminate several hundred million dollars in taxes businesses annually pay on equipment is on its way to the governor.
Leaders from the governor’s office and the Legislature on Tuesday introduced a new plan to eliminate the taxes businesses pay on computers and equipment used in the manufacturing process, but it would require voter approval.
The Michigan Senate has passed a contentious set of bills that would roll back the personal property taxes businesses pay by hundreds of millions of dollars.
Republican lawmakers have long wanted to get rid of a tax on equipment they say is keeping manufacturers from hiring more workers. But there’s a hitch, since many local officials don’t trust lawmakers to make up the lost funds.
Fresh off lowering Michigan’s overall business taxes in a bid to boost economic growth, Republicans will aim to eliminate or phase out a state tax paid on business equipment in 2012.
Lt. Gov. Brian Calley has signed the final package of new Michigan laws for 2011.