Michigan House Republicans
Rep. Hall: Exempting personal property tax clears up confusion, inconsistencies in current law
RELEASE|January 27, 2022
Contact: Matt Hall

House Tax Policy Committee Chairman Matt Hall, of Marshall, today introduced legislation to establish clearer, more uniform personal property tax parameters. The plan will lead to savings for small businesses and put more money into state and local economies.

House Bill 5702 exempts all personal property taxes beginning with the 2023 tax year. Hall noted certain industries that operate in Michigan currently enjoy personal property tax protections that some retailers don’t. In many instances, small businesses that lost money due to shutdown orders from Gov. Gretchen Whitmer have still been on the hook for personal property tax – even as the equipment they are being taxed for wasn’t used.

“One warehouse owned by a certain retailer could be taxed one way under our current laws and a warehouse that looks just like it and is owned by another retailer could be taxed another way. Legislators and members of our committee have heard a ton of questions and confusion regarding this tax. We need clarity and fairness,” Hall said. “The personal property tax also discourages investment in equipment and materials because owners know the more they get, the more tax they’ll have to pay on it – and that ultimately slows economic activity and progress. We need a more common-sense approach.”

HB 5702 continues Hall’s work for sensible and sustainable tax relief for workers, job providers, families and seniors. House Bill 5351, which he guided through the committee process and voted to advance to the governor’s desk where it became Public Act 150 of 2021, provides additional and needed tax relief by increasing the value of the small taxpayer personal property tax exemption from $80,000 to $180,000.

The $80,000 threshold had not been changed for a number of years, and creating additional clarity provides a huge benefit to the state’s vital small business community. As both PA 150 and Hall’s bill would be effective starting in 2023, Hall’s bill looks to finish what the new law was working toward – providing more inclusion to help more job providers in Michigan’s communities.

The proposal was referred to the House Tax Policy Committee for consideration.

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