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Warren Mayor to Challenge Prop 1

There weren’t many vocal opponents of Proposal 1 leading up to Tuesday’s election but one critic says he will challenge it in court. Warren Mayor Jim Fouts says he will file a lawsuit to prevent it from taking effect. Proposal 1, which voters passed this week, would gradually eliminate the personal property tax that some companies pay on equipment or machinery. The PPT was a source of revenue for many local communities, but Michigan’s general fund would partially replace those funds, with a projected increase in revenue from the state use tax and expiring tax credits. However, Fouts says claims of replacement funds are a sham and the phase-out of the PPT will cost Warren hundreds of thousands of dollars in revenues. Kelly Rossman-McKinney, a spokesperson for the campaign that supported the proposal, says the issue had gone through public hearings and been thoroughly reviewed by attorneys and doubts the lawsuit would be successful.

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