MERIDIAN TOWNSHIP - On August 5th Proposal 1 was passed eliminating a tax Business owners paid on property like furniture, equipment, and computers. The money collected on this tax went to local governments, covering costs associated with roads, education, and safety. Elimination of taxes and 100% reimbursement sound like a dream come true for all parties involved in Proposal 1. But what is the reality of the matter in Meridian Township?

Samantha Harkin’s, Michigan Municipal League Director of State Affairs, comments on the implementation of Proposal 1. "I've been getting a lot of calls from members with questions about their calculations with questions about different forms the department treasury has put together and I think there are going to be a lot of growing pains for the next couple of years."

In order to reap the benefits of Proposal 1 efforts will need to be made. If business owners own less than $80,000 in personal property exemption starts in 2014, but the business must file for the exemption. Local governments are also facing work that Harkin’s describes, "So there are different complicated formulas that are in legislation. The assessors will have to figure that out to see who gets the exemptions and see what reimbursements amounts look like going forward."

In Meridian Township Proposal 1 has been received with a mixed bag of feelings. Business owners, the Township, and Downtown Development Authority are facing different effects.

Julie Brixie, Meridian Township Treasurer, describes the Township’s current state, "We have taken over $32,000 loss to the Township in loss revenues due to the effects of Proposal 1. On the other hand our Downtown Development Authority will be receiving a reimbursement as a result of this legislation."

Only the future can tell how the growing pains of Proposal 1 will play out but for now Brixie describes how the Township is working through the process. "It's a very complicated piece of legislation. The formulas for the reimbursements don't really match up exactly with what the lawmakers were saying when they passed the legislation but we are complying with all the new laws."