LANSING – Bills that would reduce taxes paid by companies that use an enhanced method of extracting oil were signed by Lt. Governor Brian Calley on Tuesday.

Calley signed HB 4885 , now Public Act 82 of 2014, and HB 5254 , HB 5255 and HB 5274 , now Public Acts 83, 84 and 85 of 2014, respectively. All of the bills were filed with immediate effect.

“Michigan is committed to the wise use of its natural resources,” Calley said. “Providing incentives to fully develop old, traditional oil fields benefits consumers and our economy. Protecting our environment while fueling our economy is a win for everyone.”

Public Act 82, the first bill, provides a 4 percent severance tax rate for companies that use the enhanced method. The previous tax rates were 6.6 percent for oil and 5 percent for natural gas, and 4 percent for wells with less production.

“We have a great opportunity to become more competitive with other states by using this innovative method of enhanced recovery to help encourage the development of more Michigan and American energy,” said Rep. Aric Nesbitt (R-Lawton), sponsor of HB 4885. “The bills signed into law today will allow our state to take its place at the forefront of these advancing fields of energy production.”

However, Democratic gubernatorial candidate Mark Schauer and the Sierra Club Michigan Chapter criticized the bills as a tax break for oil companies.

“This law hurts taxpayers, landowners, and threatens water supplies while giving taxpayer handouts to the oil and gas industry,” Mike Berkowitz, legislative director for the Sierra Club Michigan Chapter, said in a statement. “Giving tax breaks to the oil industry that is putting our water at risk while they make record profits is just plain wrong. Especially considering that BP just spilled 1600 gallons of oil into Lake Michigan last week. Michiganders deserve better from Governor Snyder and the Michigan Legislature than this harmful law.

Schauer said the “tax break” shows that Governor Rick Snyder is out of touch with residents.

“At a time when dozens of Michigan school districts are in deficit because of Snyder’s education cuts, the last thing we should be doing is giving more handouts to big oil companies,” he said. “Instead, we should be investing in clean, renewable energy sources to reduce our dependence on foreign oil and create good Michigan jobs.”

PPT: Calley also signed the remaining eight bills in the personal property tax reform package. He signed SB 821 , SB 823 , SB 824 , SB 826 , SB 827 , SB 828 , SB 829 and SB 830 , Public Acts 86 through 93, respectively.

“Michigan is the comeback state, and these reforms will help our businesses grow and provide our communities with stable revenue for essential services, like police and fire protection, that improve the quality of life for all Michiganders,” Calley said. “The personal property tax hurt our Michigan companies and made the state less attractive to job-providers seeking a place to locate. This bipartisan package of bills will encourage job creation and help our communities and our businesses thrive.”

The changes in the legislation require voter approval on August 5. The bills were filed with immediate effect.

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