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Mackinac Center for Public Policy
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2012 Senate Bill 1070: Cut tax imposed on business tools and equipment

Public Act 402 of 2012

  1. Introduced by Sen. Mike Nofs (R) on April 17, 2012, to exempt commercial businesses (including ones that aren't manufacturers) whose tools and equipment in a particular community have a taxable value of less than $40,000 from the so-called “personal property tax,” which is imposed at the same rate as regular property taxes on buildings and land. Senate Bills 1069 and 1071 would exempt all tools and equipment used by manufacturers from the tax. This is part of the package would save businesses around $70 million annually.
    • Referred to the Senate Finance Committee on April 17, 2012.
      • Reported in the Senate on May 2, 2012, with the recommendation that the bill pass.
    • Amendment offered by Sen. Dave Hildenbrand (R) on May 10, 2012, to suspend the proposed personal property tax cuts on business tools and equipment if the legislature fails to appropriate the reimbursements of foregone revenue to local governments proposed by Senate Bill 1072. The amendment passed by voice vote in the Senate on May 10, 2012.
    • Amendment offered by Sen. Rebekah Warren (D) on May 10, 2012, to exclude commercial firms from the tax cut if they have tools and equipment anywhere in the state with a taxable value greater than $40,000. As passed, the proposed cap is $40,000 per local tax jurisdiction, so a firm with this much in equipment in several communities would still be eligible for the tax cut. The amendment failed 13 to 24 in the Senate on May 10, 2012.
      Who Voted "Yes" and Who Voted "No"

    • Amendment offered by Sen. Rebekah Warren (D) on May 10, 2012, to earmark money from a home mortgage related lawsuit settlement to reimbursing local governments for the revenue they would no longer collect due to this tax cut. The amendment failed 13 to 24 in the Senate on May 10, 2012.
      Who Voted "Yes" and Who Voted "No"

  2. Passed 23 to 14 in the Senate on May 10, 2012.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on May 10, 2012.
    • Referred to the House Tax Policy Committee on May 10, 2012.
      • Reported in the House on December 5, 2012, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on December 13, 2012. The substitute passed by voice vote in the House on December 13, 2012.
    • Amendment offered by Rep. Phil Cavanagh (D) on December 13, 2012, to reimpose the tax imposed on business tools and equipment if the legislature fails to appropriate replacement revenue to local governments. The amendment failed by voice vote in the House on December 13, 2012.
    • Amendment offered by Rep. Vicki Barnett (D) on December 13, 2012, to delay the proposed reduction of this tax. The amendment failed by voice vote in the House on December 13, 2012.
    • Amendment offered by Rep. Vicki Barnett (D) on December 13, 2012, to index for inflation the proposed $40,000 threshold for this tax. The amendment failed by voice vote in the House on December 13, 2012.
    • Amendment offered by Rep. Jeff Farrington (R) on December 13, 2012, to revise a detail of how the tax cut (which comes in the form of a tax "credit") will be claimed by businesses. The amendment passed by voice vote in the House on December 13, 2012.
    • Amendment offered by Rep. Jeff Farrington (R) on December 13, 2012, to make the bill's provisions contingent on approval by voters of a measure earmarking a portion to the state use tax to replacing local government revenue foregone by cutting the property tax on business tools and equipment. The amendment passed by voice vote in the House on December 13, 2012.
  4. Passed 58 to 50 in the House on December 13, 2012, to exempt commercial businesses (including ones that aren't manufacturers) whose tools and equipment in a particular community have a taxable value of less than $40,000 from the so-called “personal property tax,” which is imposed at the same rate as regular property taxes on buildings and land. Another bill in this package would eliminate this tax for industrial property, and others would reimburse the revenue that local governments and school districts now collect from it. This property tax on business tools and equipment currently costs Michigan employers around $1.2 billion annually, which over time would fall to about half that amount.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the Senate on December 14, 2012.
  6. Passed 26 to 12 in the Senate on December 14, 2012, to concur with the House-passed version of the bill.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on December 20, 2012.

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