Apparently, the current situation in Michigan today is that it has become almost impossible for businesses to succeed with the current situation of the state’s personal property tax. Further, if this continues, life for the regular guy in the street – the state taxpayer – will become unbearable too. And the lame excuse that is being put forward – that it is very hard for this tax to be properly administered – just doesn’t sit right. All the tax seems to be doing right now is taking Michigan down a rung on the ladder when trying to compete against firms from other states, not burdened with such a hefty tax.
Better Times Ahead?
Despite this seeming doom and gloom, there is talk about things improving in the not-so-distant future for the state. According to an editorial in the Detroit Free Press, by January 1, 2012, Michigan-based businesses are set to “enjoy an unprecedented and beneficial new tax regime.” That’s all well and good, but apparently, this is going to hit the local taxpayer as well as impact services offered by the state. So clearly this is not the solution. What has to happen instead therefore, is that those implementing the law have to weigh up how it is going to work before making another change which could increase the burden of Michiganites.
So perhaps the personal property tax isn’t all bad. It does actually go towards local government everyday operations, as well as community colleges and school districts. And indeed, in 2011, it accounts for approximately 8.5 percent of the state’s taxable value, according to the Senate Fiscal Agency, which amounts to around $1.2bn statewide.
It remains to be seen as to what the best move is for Michigan vis-à-vis its taxes. Lawmakers have to seriously weigh up all sides of the spectrum before making any further decisions, to ensure that both the taxpayer and small business is able to live in the best environment in which to thrive.