The Aug. 5 primary election decision pertains to legislation designed to reduce some of Michigan’s personal property taxes and replace the tax revenue with other means. The proposal eliminates taxes on personal property for small businesses, and phases them out for manufacturing companies. It also replaces tax revenue for local units of government, which have been the recipients of these personal property taxes.

Michigan’s personal property taxes are only paid by businesses and assessed based on the value of their equipment. This tax revenue supports the state and most forms of local governments, including counties, cities, school districts, community colleges, libraries, villages, townships and intermediate school districts.[1]

The text of the ballot question can be found in Appendix A.