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Kingsford eyes impact of business tax reform

February 20, 2013
The Daily News

By JIM ANDERSON

News Editor

KINGSFORD - City officials in Kingsford continue to review the implications of personal property tax reform legislation signed into law by Gov. Rick Snyder at the end of 2012.

At a city council meeting Monday, council member Brian Smeester said the city could see revenue reductions beginning in 2014, but the amount is uncertain. Smeester's understanding is that the loss could range from $30,000 to $179,000, although no firm calculation is in place for either the tax reduction or potential replacement revenue.

Under the legislative package, personal property taxes are reduced or exempted depending on several factors. Mechanisms are also provided to potentially replace part of the lost revenue.

Additionally, the package is contingent on voter approval of a use tax reallocation during the August 2014 election.

Generally, personal property is property that is not affixed to a structure, such as machinery, equipment and furniture. Most states that border Michigan, including Wisconsin, already exempt personal property from taxation.

In 2012, commercial personal property and industrial personal property amounted to about 6.4 percent of the total taxable value in Michigan, according to a Michigan Senate Fiscal Agency report.

The agency also notes that while industrial and commercial personal property represents a small portion of the tax base for most taxing jurisdictions, in some local units it can represent a significant portion of the tax base.

In other action Monday, the Kingsford council:

- Scheduled a public hearing for 6:45 p.m. Monday, March 18, on a home-based business permit request from Scott Person at 537 Avery Ave. The requested use is for internet and gun show firearm sales, as regulated by state and federal law.

- Approved a resolution saluting Don Edens, who is stepping down from the Kingsford Housing Commission after 40 years of service.

- Accepted City Manager Tony Edlebeck's recommendation to appoint Tom St. Louis as a new member of the Kingsford Housing Commission for a five-year term.

- Conducted a hearing on its application for a Rural Development grant of $6,000 to assist in acquiring a new public safety patrol vehicle and related equipment. There were no public comments.

Jim Anderson's email address is janderson@ironmountaindailynews.com.

 
 

 

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