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Newschannel 3 takes a look at ballot issue in upcoming election

Updated: Friday, July 25, 2014
Newschannel 3 takes a look at ballot issue in upcoming election story image

KALAMAZOO, Mich. (NEWSCHANNEL 3) - In Vote 2014 on Friday night, we're taking a look at Proposal One, on the ballot for the upcoming August election.

Newschannel 3 took a crack at briefly breaking down what is a very complicated ballot question.

The proposal would eliminate a tax that on the surface might sound very good to voters.

The tax we're talking about is Michigan's Personal Property Tax--money paid by businesses that essentially goges to local governments and schools--that probably sounds bad to a voter.

After all, the businesses have paid this tax for many years on the value of the business equipment they own.

But the fact is that Governor Snyder began dismantling this tax in his first term in office, and now voters can kill it by creating a new authority that will apparently allow the state to reimburse the local governments and schools for that lost tax revenue.

Supporters say:

  • It doesn't raise taxes
  • It eliminates a perceived unfair double-tax on small businesses
  • It simplifies the tax code.


Those against it say:

  • It's unclear to some local leaders how much revenue they'll receive in the new system, which will wreak havoc on revenue projections
  • There are no guarantees that some revenue will be replaced for the locals and for schools.


As you might expect with a proposal, there's always a bit of fear that this is just too complicated and people will skip it, perhaps believing the proposal will raise taxes.

Inevitably, if voters say no, the personal property tax will go back into effect.

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