Saturday, November 16, 2013

School Aid Fund takes another hit, boat/car/RV buyers get tax cut

Last month we wrote about how the School Aid Fund is being slashed on multiple fronts with targeted tax cuts sapping revenue from public schools.  Defunding of public schools happening on multiple fronts, Okemos Parents for Schools, October 12, 2013. The Legislature and Governor Snyder have signed into law one of these measures which will cost the School Aid Fund $200 million per year. 

The new law "will exempt the value of a trade-in from the taxable purchase price of a new car, boat or RV."  Michigan Gov. Rick Snyder signs tax break for car, boat buyers with trade-in: 'They deserve it',, November 6, 2013.   Gov. Snyder said tax payers "deserve" the tax cut, and Senate majority leader Randy Richardville (R - Monroe) said "This is one of those rare instances where we have a win, win, win," calling the bill good news for manufacturers, dealerships and customers. Id.  Okemos Parents for Schools has not independently reached Gov. Snyder or Sen. Richardville, to get their reaction on the impact of the legislation on the School Aid fund.  MLive reports the following:
The current budget includes a $20 million cushion for tax relief that will cover current-year costs, but the Senate Fiscal Agency has projected annual revenue losses could eventually top $200 million. [Id.]

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