MMA Priorities Passed as Legislature Closes for 2021
At 1:00 a.m. Wednesday, 12/15/21, on the last day of the legislative session for 2021, I am pleased to report the passage of several MMA legislative priorities. These included dramatic actions to protect Michigan’s economic future and further progress on MMA’s long-standing leadership on the elimination of the industrial personal property tax (PPT).
New Tool for Michigan to Win Jobs and Investment
Responding quickly and dramatically to the ongoing loss of next-generation automotive investments in other states, most recently to Tennessee and Kentucky, the Legislature passed a $1 billion economic development tool to make Michigan competitive again. This package puts Michigan in the game for transformational investments as the auto industry quickly evolves from the internal combustion engine to electric and autonomous vehicles.
We were pleased to see the Legislature coordinate with the Whitmer Administration and the manufacturing industry to engage in the interstate battle for future electrification investments, because so much of our current manufacturing economy and supply base is embedded in the internal combustion-based economy. As technological advancement drives new investment, our state must compete aggressively to retain new investment on our soil and maintain our national leadership in automobile development and production.
The benefits of this effort will be felt throughout the supply chain and the MMA membership, including the critical tool and die and molding industries. We look forward to positive results from this action in the very near future. It further and proudly declares that Michigan is the state for manufacturers in all industries.
I am communicating our appreciation to legislative leadership and the Whitmer Administration for making difficult decisions and taking bold steps at a critical moment in Michigan’s history. We will be reaching out to members through our VoterVoice mechanism to encourage you all to thank your legislators who voted for this critical package. While some legislators did not support the package, we want to acknowledge those who recognized this moment in history and voted in support.
Elimination of the Industrial PPT
In other actions, the Legislature moved two top MMA policy priorities improving the personal property tax process. To fully implement the elimination of the manufacturing PPT in 2023, MMA’s “One and Done” package will end the administrative burden for companies to file annually with their local units of government starting in 2023. Streamlining the process will help manufacturers take advantage of the PPT exemption, which has saved manufacturers $3.4 billion since 2016.
MMA’s second PPT priority avoids the administrative nightmare of having to track the location of laptops, monitors and other equipment held by staff working remotely on “tax day,” December 31 of each year. The bill allows the assumption that all company-owned property is located at the company on December 31 and avoids the requirement to file in each community where their employees live and possess company personal property. We anticipate the bill will be signed prior to 12/31/21 to clarify the requirement for manufacturers.
As we look forward to 2022, we believe the discussions about economic development created momentum in support of making Michigan more competitive. Policymakers discussed ideas such as support for R&D investments, access to capital and the future of the tool and die industry. The success of Tennessee and Kentucky opened new dialogue and we believe this creates new opportunities to promote our pro-manufacturing agenda and further policy opportunities for our members.
We wish you and your families much success and happiness in the coming year.