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Wyoming City Manager's Blog - Personal Property Tax Elimination | News

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Wyoming City Manager's Blog - Personal Property Tax Elimination
News, Politics
Wyoming City Manager's Blog - Personal Property Tax Elimination

From: http://www.wyomingmi.gov

The hot topic this week for Michigan cities, counties, townships and villages is the State Legislature’s plan to eliminate Personal Property Tax, or PPT. PPT is paid by businesses to the individual taxing jurisdictions and is based upon the applicable millage rate and the “value” of their personal property, which includes things such as equipment, computers, desks, etc. For the City of Wyoming, the PPT provides approximately $3 million in funding.

Since the successful termination of the State Single Business tax, the PPT has been square in the crosshairs for the business community. Many of us agree that the PPT is an unfair tax with some potential job killing characteristics. However, the bigger issue has been how does a city like Wyoming survive the continued raids on our revenues? Already we have seen the elimination of Statutory State Shared Revenue (which in today’s dollars is a reduction of at least $3 million of our budget), reduction in our taxable values (a loss of more than $2 million) and now the threat of losing (nearly $3 million from PPT). I will say it again: Few businesses would survive the kind of losses the City has seen in our revenue.

So what does all this mean? PPT funding is a part of any of our operations that utilizes millage funding. The ability to add, enhance and maintain service is severely limited by a declining funding model. It also forces the City Council to review other options for maintaining services including additional revenue sources. I’m not saying that they will pursue other sources, just that they must be aware of another reduction in our funding.

Unlike the state, if the City decides not to pursue additional funding, service modifications will be necessary, either through reductions of service or changes in how a service is delivered. This has been the failure of the State for many years, they continue to cut taxes and do not make the corresponding service cuts to reduce or change service levels. Finally, since police and fire represent 70 percent of what we do, we cannot operate without examining these operations for potential service alterations.

In the end, our staff continues to be innovative, cost-conscious and dedicated to providing the best value for city services. We will examine, test and justify any and all changes and are open to all ideas that a resident might have.

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