The House of Representatives last week passed a league-requested bill that will assist communities in offering personal property tax abatements for certain companies.  Under current law, an eligible community cannot offer a personal property tax abatement to a company unless the property is new to the state. In one occurrence, the City would have to offer the abatement to a company that purchases the equipment from out-of-state instead of offering it to a company that purchased equipment from another Michigan company.  HB 5327, sponsored by Rep. Kathy Angerer (D-Dundee), changes this by requiring that the equipment be new to the municipality and ensuring that the equipment does not receive a second abatement.  Rep. Angerer’s bill keeps dollars in Michigan (especially in border communities) and allows flexibility for eligible local units of government.

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