Introduced
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To create a state fund to reimburse local governments for the foregone property tax revenue associated with the proposal in Senate Bills 1069 to 1071, which would gradually phase-out the so-called “personal property tax” that manufacturers currently pay on tools and equipment, and eliminate this tax for smaller non-manufacturing businesses. Money for this would come from state tax revenue that now pays for “corporate welfare” tax breaks and cash subsidies previously promised to particular firms, once the promised benefits have been delivered. The “personal property tax” currently costs businesses statewide around $1.2 billion annually, which would eventually be reduced by around $470 million.
Referred to the Committee on Finance
Substitute offered
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To replace the previous version of the bill with one that starting in 2013 requires the state to reimburse any revenue local governments lose due to the tax cut on property millages imposed to repay debts incurred by the local.
The substitute passed by voice vote
Amendment offered
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To require the state starting in 2013 to reimburse 100 percent of the revenue local governments lose from the tax cut on property tax millages approved by voters for specific purposes, such as police, fire, recreation programs, etc.
The amendment passed by voice vote
Amendment offered
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To require the state to reimburse the revenue local governments lose from the tax cut if 2 percent or more of their "general fund" revenue comes from personal property taxes. This increases the number of local governments eligible for reimbursements, because the original version required this only for locals that lose at least 2 percent of ALL revenues, not just "general fund" ones.
The amendment passed by voice vote
Amendment offered
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To not give the proposed tax cut to businesses that have filed for reorganization under federal bankruptcy laws.
The amendment failed by voice vote
Amendment offered
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To not give a business the proposed tax cut unless it has increased the number of jobs by at least 5 percent in the past five years.
The amendment failed 12 to 25 (details)
Amendment offered
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To not give a manufacturer the proposed tax cut if it has outsourced jobs to another country in the past five years.
The amendment failed 14 to 23 (details)
Passed in the Senate 22 to 15 (details)
Referred to the Committee on Tax Policy
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
