WASHINGTON Aug 6 Michigan voters have approved
a measure to end property taxes on some business equipment and
funnel replacement money to local governments for services that
were backed with the tax revenue, according to results posted by
the Michigan Department of State.
More than two-thirds of Tuesday's 1.25 million voters
approved the measure, which has already passed the state
legislature. Michigan law requires voters to sign off on new
Industrial and commercial personal property with a cash
value of less than $80,000 and property more than 10 years old
will be exempt from taxation under the law.
It also will shift a portion of the state's use tax revenue,
which includes taxes on out-of-state purchases, used car and
boat sales and rental receipts, to local governments to cover
services such as policing. The law establishes an "essential
services assessment" to replace some of the lost property
According to an analysis of the measure by Michigan's
senate, "local unit revenue in aggregate will be unaffected."
Local governments will receive $96.1 million in fiscal 2015,
$380.6 million in the subsequent fiscal year, and $410.5 million
in the following fiscal year, the analysis showed.
The state general fund will lose $39.2 million in fiscal
2014, $126.3 million next fiscal year and $349.5 million in the
following fiscal year, according to the analysis.
(Reporting by Lisa Lambert; Editing by Paul Simao)