Leaders from the governor's office and the Legislature have introduced a new plan to eliminate the taxes businesses pay on computers and equipment used in the manufacturing process.

The proposal announced Tuesday by Lt. Gov. Brian Calley and lawmakers aims to repeal a tax they say hurts businesses and reduces Michigan's economic competitive. But it also provides more reimbursement to communities for lost revenues than in a measure passed in May by the Senate.

Reimbursement money would come from part of an existing tax paid on out-of-state purchases.

The proposal would require voter approval if the Legislature passes it.

The rollback of the tax is expected to amount to $600 million annually once fully implemented and reimbursements to local governments would come to about $500 million.