LANSING, Michigan - Today (May 10, 2012), the Michigan Senate made significant changes to SBs 1065-1072, the package of bills which exempt significant portions of personal property taxes. The League participated in many negotiations with key Senate Republicans and other local government organizations on this issue in the past several days.

Late Wednesday they proposed making significant changes to the bills in exchange for a neutral position from the League, in order to signal good faith negotiations as the bills move over to the House.

The major changes include: Reimbursing locals immediately for all voter approved millages and indebtedness (rather than waiting until 2016) reducing the threshold for reimbursement from 2 percent of all governmental funds to 2 percent of general funds, and including a repealer provision that if future legislators do not fully fund the replacement fund, the bills are repealed. This means if the legislature does not fully fund locals according to the distribution in statute, the personal property tax comes back automatically without any legislative action.

After a discussion with the League Board, there was a consensus that this was a legitimate attempt by the Senate to address the League's concerns regarding lack of assurances in the annual appropriations process. There are many issues we intend to continue working on in the House of Representatives, including increasing the level of reimbursement. Below you will find links to these bills as passed by the Senate.

The vote tally on SB 1072 bills was 22-15 with opposition from all Democrats and three Republicans - Sen. Patrick Colbeck of Canton Township, Sen. John Moolenaar of Midland and Sen. Tom Casperson of Escanaba. Sen. Mike Green (R-Mayville) was absent. The vote tally on all other bills was 23-14, with Senator Colbeck switching to support.

Read a Detroit Free Press article that nicely summarizes the issue.

Summer Minnick is the Director of State Affairs for the League. She can be recahed at (517) 908-0301 or smininck@mml.org

PPT Senate Letter.pdf (390.18 kb)

1065 Senate.pdf (19.35 kb)

1066 Senate.pdf (17.98 kb)

1067 Senate.pdf (42.87 kb)

1068 Senate.pdf (18.34 kb)

1069 Senate.pdf (21.34 kb)

1070 Senate.pdf (19.97 kb)

1071 Senate.pdf (21.01 kb)

1072 Senate.pdf (39.81 kb)

This Wednesday, the House Tax Policy Committee is taking up HBs 4860 and 4861. HB 4860 increases penalties for failure to notify the assessing office of a transfer of ownership. The League is in support of this bill. HB 4861 would establish that a supplemental tax bill is not issued to a taxpayer if the error in assessment was NOT due to an error on the part of the owner claiming the exemption. The League has concerns with this bill, and has been working with the sponsor on those issues. Both bills are being sponsored by Rep. Stamas (R - Midland).

Summer Minnick is the Director of State Affairs for the League. She can be reached at (517) 908-0301 or sminnick@mml.org

Last week, the Department of Treasury put out information regarding the new law, PA 114 of 2012, which makes changes to the Principal Residence Exemption. The law was SB 349 and it creates an addition filing deadline and creates a conditional rescission for "foreclosure entities." The League opposed the bill as it went through the legislative process, even though there were many changes that were put in place due to our concerns. The website link and PDF are attached below.

Summer Minnick is the Director of State Affairs for the League. She can be reached at 517-908-0301 or sminnick@mml.org

www.michigan.gov/pre

PA 114 of 2012 Notice.pdf (79.42 kb)

LANSING, Michigan - The Michigan Senate has listed the eight-bill package to repeal a significant portion of the personal property tax (SBs 1065-1072) on their agenda this week as tentative. There are many discussions that have been taking place over the last week, regarding issues with the bill. It is unclear if any issues will be addressed, possibly postponing any action, or if the bills will just be sent to the House as-is. The League, as part of the Replace Don't Erase Coalition, supports a Constitutional Amendment to ensure local communities receive their lost funding.

Newly updated sample letters to send to your Michigan Senators and Representatives are available here. Just go to the blue action alert box and follow the instructions starting by clicking "take action".

Summer Minnick is the Director of State Affairs for the League. She can be reached at (517) 908-0301 or sminnick@mml.org.