Schools still losers in PPT elimination

A major sticking point in SB 1072—eliminating the Personal Property Tax (PPT)—has been no plan for replacing the lost revenue for local governments and school districts. Last week the Senate approved Republican amendments that would remedy the situation—at least in part. 

A major change puts future Legislatures on the hook if they fail to reimburse local governments for lost revenue. The punishment is a return to the current form of the PPT. Amendments allowing more local governments to qualify for reimbursement and another forcing the state to cover the costs for millages for fire service or libraries until 2016 were passed.

While school districts get 100 percent reimbursement for school bonded debts, they are still pretty much left out of the equation. Democrats call the legislation a continued attack on Michigan workers while business continues to enjoy special favors. They lost two amendments—one  requiring businesses to show they were creating jobs with this tax break and another that would have disqualified businesses if they have outsourced jobs outside of the United States.  

The bill now moves to the House.