Voters approve Proposal 1

Michigan voters have passed Proposal 1, the only statewide ballot question in Tuesday’s election, meaning the phase-out of Michigan’s personal property tax on business will continue.
Proposal 1 would gradually eliminate the personal property tax that some companies pay on equipment or machinery. The PPT was a source of revenue for many local communities, but Michigan’s general fund would partially replace those funds, with a projected increase in revenue from the state use tax and expiring tax credits.  Business supported the proposal arguing that the PPT is out of date and it hurts the state’s economy.   Two large corporations, Ford Motor Company and Dow Chemical, led a group that contributed millions of dollars to a campaign pushing for a yes vote on Prop 1.  Polls leading up to the election showed some confusion among voters concerning Prop 1, however the uncertainty did not translate into a defeat.  (MRN)