Replace Don’t Erase
Dec 28, 2011 04:42:53 PM
Kalamazoo, MI –
Kalamazoo Public Library recently joined counties, municipalities, public safety and public school officials from all across Michigan in urging the State Legislature and Gov. Rick Snyder to fully replace all local revenues that would be lost if they eliminate the personal property tax (PPT) on business equipment and machinery. This is a tax paid only by businesses, not by individual taxpayers or homeowners.
While the tax is unpopular with businesses and most agree that PPT reform may be needed, scrapping the tax without guaranteeing replacement funds for local services and schools would be very harmful to Michigan citizens. Given earlier cuts in state revenue sharing, and continually declining property values, loss of the PPT would be devastating.
Locally, the tax accounts for $4.7 million, or almost 14 percent of the city of Kalamazoo’s property tax revenue. In Portage, it accounts for $3.8 million, or nearly 18 percent. (Mlive) Kalamazoo Public Library would lose $1,224,000 every year, almost 11 percent of the 2011-12 budget.
In response to declining property tax revenue and cuts in state aid, KPL has eliminated bookmobile service, reduced hours at branch libraries, reduced staff by 10% (more than ten positions), and eliminated public computer training classes. Additional loss of library revenue will result in further reduction in service hours, fewer library programs and materials, less outreach to preschoolers, possible branch library closures, and more.
The resolution in support of fully replacing, not just erasing, Michigan’s personal property tax, which was unanimously adopted by Kalamazoo Public Library trustees on December 19, 2011, may be read here.
Michigan Municipal League
MLA Joins Replace Don’t Erase Personal Property Tax Coalition
Replace, Don’t Erase Michigan’s Personal Property Tax
Mlive.com: Kalamazoo and Portage officials want to keep personal property tax
Mlive.com: Local officials want guaranteed replacement if business property taxes are cut
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