Senate Considers Tax Exemptions for Disabled Veterans

Yesterday the Senate Finance Committee considered two bills that would create tax exemptions for disabled veterans.

Senate Bill 104 would allow a community to give a tax exemption to a qualified disabled veteran. This is an option for a community and not a mandate.

The committee also considered Senate Bill 352, which would specifically exempt from property taxes real property used and owned as a homestead by a disabled veteran who was discharged from the Armed Forces of the United States under honorable conditions.

The League continues to be opposed to mandatory property tax exemptions. In 2011 the legislature and administration eliminated state tax exemptions so as to not “pick winners and losers” and balance the state budget. Yet we continue to combat legislation that mandates our members give property tax exemptions for various individuals. The policy is inconsistent, and we are opposed to this piecemeal look at tax policy.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

 

It’s the Most Wonderful Time of the Year

Can you feel it?  It’s the time of the year when Jack Frost starts to nip at our nose and we all dream of what could be.  No not the holidays silly.  The lame duck legislative session.  Every lame duck session is packed with action.  Lets be honest, its a time in the legislature when issues that have been debated at length, but languished because they are tough votes tend to move.  It’s part of the process.  What lame duck shouldn’t be used for is ramming through major policy changes that have not had the benefit of debate and our best collective thinking.  Unfortunately, that is exactly what is happening with personal property tax(PPT) reform.

Just to be clear, I am not in favor of the PPT.  It’s a bad tax. It’s tough to administer and can be a disincentive to business investment.  That said, the reality is the PPT provides critical funding to vital local services like police, fire, parks and the like and they are already drastically underfunded. This means any reform must provide guaranteed replacement revenue.  The plan that is on the table attempts to provide replacement revenue but requires a statewide vote, potential local referendums, new levels of government,added bureaucracy, and the possibility of zero replacement revenue if votes fail.   Oh by the way, at this point we only have a plan outline.  We don’t even have bills to read.  So what we have on the table is a plan with more questions than answers.

So my question is what’s the rush?  If we all agree reform is necessary, why hurry such important tax policy changes without making it the best system we can?  We have toiled for years under a cobbled together tax system and that hasn’t exactly been working out so well.  There is too much at stake, and no reason to do this in the next two weeks.  Let’s start a new trend and focus on getting it right, not just getting it done.