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Bridge Michigan
Michigan’s nonpartisan, nonprofit news source

Schools take tax repeal personally

Elimination of the personal property tax could cost schools $548 million, according to an analysis by the non-partisan House Fiscal Agency.

The state’s personal property tax isn’t really personal, but rather a tax mainly incurred by businesses for things such as commercial furniture, industrial machinery and utility equipment. Senate Bill 34, now under consideration by the Senate Finance Committee, would wipe the tax off the books.

Such a move would have a “significant impact” on schools, which get funding from the PPT through the State Education Tax, as well as local and Intermediate School District millages, according to the report.

Not surprisingly, school officials aren’t pleased with the prospect of cutting their budgets again.

“School administrators have employed desperate strategies to cope with severe cuts to this year’s school funding,” William H. Mayes, Executive Director of Michigan Association of School Administrators, said in a news release Thursday . “It is incomprehensible that schools could absorb another massive reduction in resources without putting students at risk. The Governor and the Legislature must fully replace all funds lost if the PPT is repealed.”


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