Michigan voters yesterday crushed by almost 3 to 1 a proposal to slash property taxes and increase the sales tax. The plan had been devised by state leaders hoping to head off more sweeping tax revisions.
With 77 percent of the precinct reporting, the plan called Proposal A was losing, 1,189,525 to 432,617. Returns from across the state showed the proposal losing heavily in all areas.
The plan would have cut property tax bills by about 45 percent. To offset the losses, the sales tax would have risen from 4 to 5.5 cents.
The issue was placed on the ballot by Gov. William G. Milliken and the legislature in part to throttle support for huge tax-cut plans expected to be on the state ballot in 1982.
Under Proposal A, the state would have been required to replenish what local governments would lose in property taxes. Officials estimated that that would mean the state would have had to distribute all its extra sales tax revenues and still suffer a net loss of $250 million.
In Pittsburgh, Mayor Richard Caliguiri swamped four challengers to win the Democratic mayoral primary, but apparently lost a write-in campaign for the Republican nomination.
Republican Committeeman Fred Goehringer claimed the Republican victory with slightly more than half of the GOP votes counted.