WASHINGTON (Reuters) - Michigan voters have approved a measure to end property taxes on some business equipment and funnel replacement money to local governments for services that were backed with the tax revenue, according to results posted by the Michigan Department of State.
More than two-thirds of Tuesday's 1.25 million voters approved the measure, which has already passed the state legislature. Michigan law requires voters to sign off on new local taxes.
Industrial and commercial personal property with a cash value of less than $80,000 and property more than 10 years old will be exempt from taxation under the law.
It also will shift a portion of the state's use tax revenue, which includes taxes on out-of-state purchases, used car and boat sales and rental receipts, to local governments to cover services such as policing. The law establishes an "essential services assessment" to replace some of the lost property revenues.
According to an analysis of the measure by Michigan's senate, "local unit revenue in aggregate will be unaffected."
Local governments will receive $96.1 million in fiscal 2015, $380.6 million in the subsequent fiscal year, and $410.5 million in the following fiscal year, the analysis showed.
The state general fund will lose $39.2 million in fiscal 2014, $126.3 million next fiscal year and $349.5 million in the following fiscal year, according to the analysis.
(Reporting by Lisa Lambert; Editing by Paul Simao)