LANSING - The August 5th Primary may not be the biggest election, but one ballot issue could create a big change for local businesses.

Come August 5th, Michigan voters will see one statewide ballot issue that greatly impacts local businesses.

Proposal 1 is designed to eliminate the personal property tax businesses pay, without placing a tax increase on Michigan residents.

Before state legislators voted to repeal these personal property taxes earlier this year, small businesses were taxed on office furniture, computers, and machinery.

"When small businesses have to buy a piece of equipment, they pay sales tax but then they also have to every single year for the life of the equipment pay a personal property tax," said Michael Rogers, Vice President of Communications for the Small Business Association of Michigan.

Supporters say the double-tax is unfair, because it creates an noncompetitive job market for Michigan businesses.

"It's important that voters understand that this is really a situation where everybody wins, your small business owners in your community will benefit because they don't have to pay this noncompetitive double tax anymore but at the same time, the revenue is going to be guaranteed to the local communities for essential services like fire and emergency services," said Rogers.

The proposal aims to do that by shifting a dedicated amount of revenue from the Michigan use tax to services that currently rely on personal property tax revenue.

"We have businesses that have personal property tax bills between 50, 100, 200, 300 dollars. To a lot of them, it's not a lot of money. Those small tax payers are the ones who are going to be exempted from it, but most of them feel pretty good about it if they are aware enough of the legislation to have filed the proper paperwork," said Meridian Township Treasurer, Julie Brixie.

We have received no comment from those opposing the proposal.

The proposal will appear on the August 5th ballot as follows:

APPROVAL OR DISAPPROVAL OF AMENDATORY ACT TO REDUCE STATE USE TAX AND REPLACE WITH A LOCAL COMMUNITY STABILIZATION SHARE TO MODERNIZE THE TAX SYSTEM TO HELP SMALL BUSINESSES GROW AND CREATE JOBS

The amendatory act adopted by the Legislature would:
1. Reduce the state use tax and replace with a local community stabilization share of the tax for the purpose of modernizing the tax system to help small businesses grow and create jobs in Michigan.
2. Require Local Community Stabilization Authority to provide revenue to local governments dedicated for local purposes, including police safety, fire protection, and ambulance emergency services.
3. Increase portion of state use tax dedicated for aid to local school districts.
4. Prohibit Authority from increasing taxes.
5. Prohibit total use tax rate from exceeding existing constitutional 6% limitation.

Should this law be approved?
[ ] YES
[ ] NO