Michigan primary voters gave final approval to Proposal 1 yesterday, which will set in forth the plan to phase out personal property taxes that small businesses pay on office equipment and manufacturers, including Detroit automakers, pay on industrial equipment. The Legislature passed initial bills eliminating the tax in 2012, and subsequent legislation to fix the revenue shortfall for communities was passed earlier this year. Supporters of Prop 1 argued that reforming the personal property tax was imperative for business growth and investment, and will make Michigan more competitive with neighboring states that have already eliminated similar taxes. According to MLive, vocal critics were few and far between, but those who did speak out against Proposal 1 questioned the statutory guarantee of replacement revenue — which lawmakers could revisit in the future — and the overall impact on the state budget. The plan is projected to cost state government up to $600 million a year. But manufacturers will pay an assessment expected to generate about $100 million annually, and supporters say expiring tax credits would make up most of the difference.