MMA ’ s Manufacturing Agenda 11
Policy principles to support a competitive manufacturing sector . Michigan must :
■ Address challenges created by COVID-19 .
■ Out-compete other states to attract and retain manufacturing investment .
■ Ensure tax policy continues to drive a strong manufacturing-based business climate .
■ Recognize that capital is mobile and tax policy can influence investment and employment decisions .
■ Promote free and fair international trade .
■ Ensure administrative agencies are efficient and responsive as effective partners in our efforts to compete in the global economy .
■ Protect Michigan taxpayers from negative impacts of federal tax law and policy changes .
■ Explore opportunities to move away from a reliance on personal property tax on commercial and utility property .
Specific Actions for Leaders :
■ Expand economic development incentives .
■ Ensure competitive effective tax rates for manufacturers compared nationally and avoid tax increases on manufacturers .
■ Simplify State Essential Services Assessment and strive for administrative efficiency in implementation of PPT phase-out for eligible manufacturing personal property . This includes consideration of eliminating local filings for manufacturing personal property beginning in 2023 and reducing the number of tax rates for the State Essential Services Assessment .
■ Support development of clear and consistent agency guidance across all state and local taxes in Michigan .
■ Maintain fair property tax appeals process , using all appropriate valuation methods .
■ Ensure deductibility of state and local taxes federally for pass-through entities and for business expenses for state tax purposes , such as 163 ( j ).
■ Oppose broad , unilateral , and import-restrictive trade measures that unfairly increase costs and restrict demand on Michigan-made products .
■ Oppose transaction taxes that pyramid tax burdens , such as service taxes on business services .
■ Ensure flexibility in tax administration and imposition to address COVID-19-related challenges .
Savings from Industrial Personal Property Tax Elimination
$ 576 Million Annual Savings
$ 2.8 Billion Saved in Total ( 2016 – 2020 ) mimfg . org
Mike Johnston MMA Vice President of Government Affairs johnston @ mimfg . org 517-487-8554