Tuesday, October 16, 2012

Michigan Governor Rick Snyder wants to continue to tax equipment investment.

About a year ago the City of Muskegon took the initiative to help ADAC expand, creating new jobs and expanding the city's tax base with hopes new jobs would also mean home purchases or rental and more stability of their property tax income.

Published: Tuesday, November 22, 2011, 6:08 AM     
Updated: Tuesday, November 22, 2011, 10:34 AM
MUSKEGON — A leading West Michigan automotive parts supplier (click here) is making a major investment in its Muskegon operations with expectations of creating 130 jobs in the next two years....

Website of ADAC Plastics (click here)

Does it make sense a local municipality would see the PROFIT in this, not just for the company but for the community. This not only increases local growth and property taxes, but, the community merchants benefit as well. Those that live locally will shop locally. The residents will invest in their own best outcomes locally, so it all makes sense, right?

The state profits from sales tax, gas tax, etc. Everything it looking up, right?

Governor Snyder doesn't think so.


Published: Tuesday, November 22, 2011, 7:23 PM     
Updated: Tuesday, November 22, 2011, 7:39 PM

By Dave Alexander | dalexan1@mlive.com 

...“We have to thank Muskegon (click here) for all of the support we’ve received over the years,” ADAC in-house attorney John Shape told the city commission. “We’ve made a large investment in this community. We plan on being here for a really, really long time.”
The Grand Rapids-based ADAC Plastics – makers of door handles and other plastic body trim assemblies for the largest automakers in the world – has two plants in Muskegon’s Port City Industrial Park. The company will build a 70,000-square-foot addition adjacent to its facility at 1801 E. Keating at an investment of $4.69 million.
New high-tech painting equipment to provide an even better quality product for customers such as Ford, General Motors and Nissan will cost an additional $15.78 million. The expansion and equipment upgrades will require an additional 130 workers, company officials announced....

Now, don't be mistaken, the politics around the expansion is great, even the Lt. Governor thinks so. But, the reason the Lt. Governor is touring the plant isn't because he 'thunk it up,' but, to defend their administration position on a state referendum this November.

By Dave Alexander | dalexan1@mlive.com 
on October 15, 2012 at 3:25 PM
MUSKEGON, MI – Lt. Gov. Brian Calley (click here) makes the case that changes in the state’s business tax, regulatory policies and more stable state finances have led to the beginning of a turnaround in Michigan....

How Calley and Snyder can take any credit here at all is anyone's guess, but, that isn't the best part.

Snyder administration against all state ballot proposals except emergency financial manger law, Lt. Gov. Calley says (click here)

By Dave Alexander | dalexan1@mlive.com 
on October 15, 2012 at 5:44 PM


...When it comes to the six statewide ballot proposals before voters Nov. 6, the Snyder administration’s position is pretty easy to remember, Calley said.
“We like to say Proposal 1 is a yes and then no to the rest,” the lieutenant governor said of support of the new emergency financial manager law up for referendum in Proposal 1.
But when it comes to the remaining five propoals, Snyder and Calley ask voters to reject all of them.
After the election, the administration will continue its moves at state business tax reform and begin to unveil the governor’s policies on energy and the environment, Calley said.
A major proposal to eliminate Michigan’s personal property taxes on manufacturing equipment will be pushed for final passage in the Michigan Legislature, Calley said. The personal property tax bills have already passed the Senate and are awaiting action in the House, he said.
The Snyder administration, which already pushed through the elimination of the Michigan Business Tax in favor of a new corporate income tax, is now targeting the $1.3 billion state tax on business equipment. However, simple elimination of what Calley calls “a tax on investments” would cripple many of the state’s cities, townships and counties if replacement revenues are not found.
Muskegon City Manager Bryon Mazade used some time with Calley on the ADAC Automotive tour to lobby for full replacement of the personal property tax revenues as the city of Muskegon has nearly 20 percent of its property taxes coming from the personal property tax. In cities like Whitehall, the percentage is more than 40 percent....

So, let me get this right. Snyder wants to eliminate 20 percent of Muskegon's tax base and 40 percent of Whitehall's tax base while imposing emergency manager rules on the state. Really?