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 Ford supports important Michigan ballot proposal

DATE: Will be calculated from "Release Start Date" field.

​An outdated tax on manufacturing and small business equipment in Michigan is close to being permanently repealed, and it’s now up to Michigan voters. A statewide ballot referendum approving a more stable funding source for local governments and ultimately repealing personal property taxes currently paid by manufacturers will appear on the Aug. 5 primary ballot as Proposal 1.  Ford is part of a broad coalition of local governments, businesses, first responders, schools and citizens supporting a "yes" vote.

"Proposal 1 to reform the personal property tax on manufacturing equipment is a critical issue that the business needs to support," said Joe Hinrichs, president of the Americas. "This proposal will significantly reduce the company’s tax burden in Michigan and is a key part of staying competitive in the industry."

Proposal 1 solves two problems at once without a tax increase on anyone. It helps reform an outdated tax on manufacturing, plus it stabilizes local communities by providing dedicated replacement funding for services such as fire and police protection.

Currently in Michigan, businesses pay personal property taxes every year on the value of every piece of equipment they own. Ford pays taxes on equipment like stamping presses, robots, and paint booths, and in some cases has been paying taxes on the same equipment for decades. These taxes are levied and collected by local governments and are paid by businesses in addition to taxes from real estate property taxes and other fees. Personal property taxes on manufacturing equipment have already been eliminated in nearly all neighboring states and provinces.

Ford worked with lawmakers and community leaders to reform personal property taxes in Michigan. Passing Proposal 1 keeps in place legislative reforms that end property taxes on manufacturing equipment by changing the way local governments are reimbursed for providing services that protect public safety. The tax reform will modernize the state’s tax structure and better position Michigan to attract new jobs and investment – all without a tax increase.

"Voting yes on Proposal 1 is good for Ford jobs and investment in Michigan and is critical to the company’s long-term competitiveness," said Hinrichs. "Ford is helping lead the recovery in the state and repealing this outdated tax system supports that momentum."

"This is a bottom-line issue for Ford," said Mary Culler, director, State and Local Government Affairs. "That’s why we’re encouraging Michigan employees and retirees to make their collective voice heard by voting 'yes' on Proposal 1 on Aug. 5 or by absentee ballot."

  

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5/29/2014 7:00 AM