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 The Governor and the Legislature must fully replace all funds lost if the PPT is repealed.”
HOW MUCH WOULD IT COST YOUR SCHOOL DISTRICT? Click here to find out: http://house.michigan.gov/hfa/PDFs/PPT%20Elimination%20Memo.pdf
Michigan Education Watch
Michigan Education Watch is made possible by generous financial support from:
Subscribe to Michigan Health Watch
See what new members are saying about why they donated to Bridge Michigan:
- “In order for this information to be accurate and unbiased it must be underwritten by its readers, not by special interests.” - Larry S.
- “Not many other media sources report on the topics Bridge does.” - Susan B.
- “Your journalism is outstanding and rare these days.” - Mark S.
If you want to ensure the future of nonpartisan, nonprofit Michigan journalism, please become a member today. You, too, will be asked why you donated and maybe we'll feature your quote next time!