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Payments in Lieu of Taxes FAQs

  • No. Public Act 604 of 2012 provides for a single billing per year per taxing authority for all Department of Natural Resources property.

  • Per Public Act 604 of 2012, DNR PILT bills should be provided by Dec. 1 to your county. Taxing authorities are to submit a single statement including all DNR purchased land parcels in their jurisdiction. A breakdown of millage rates must be supplied with bills including an explanation for “Others”. Counties will forward the PILT bills to Treasury no later than Dec. 15. If an assessing district does not submit a statement under this subsection by Jan. 1, the amount payable to that assessing district shall be reduced by 5% for each month or portion of a month after Jan. 1 that the statement is late.

  • For question, please contact:

    Lisa Harry
    Phone: 517-241-4358
    Email: TreasuryPILT@michigan.gov
    Mailing address:
    Michigan Department of Treasury, PILT Program
    PO Box 30722
    Lansing, MI 48909

  • The local tax collecting unit shall distribute the amount received in the same manner and in the same proportions as general ad valorem taxes collected.

    See sample distribution sheet.

  • The state treasurer shall annually forward a separate payment in the amount of the assessment to each affected assessing district in the county by February 14 for any assessing district that has submitted an accurate statement as required by Public Act 604 of 2012 Sec. 2154.

    (5) Beginning 2013, this state shall make payment in full to all local assessing districts under this section. Beginning 2014, if this state does not make payment in full to all local assessing districts, the delinquent amount that this state failed to pay is subject to penalty and interest as for delinquent taxes under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.

  • Yes. Public Act 604 of 2012 stipulates that school taxes are to be paid from the School Aid Fund (SAF). Therefore, each school millage rate must be specified as school millage rate so funds can be obtained from the SAF for payment. The Department of Treasury will issue one warrant/EFT for all assessments, including the SAF share, to each jurisdiction.

  • No. There is no legal authority for State owned property to be subject to either reversion or other lien. While payment in lieu of taxes are determined similar to taxes, all government lands are exempt from the property tax and these payments are not “taxes.” 

  • For the first full year of PILT, the valuation will be based upon 50% of the true cash value as determined by the State Tax Commission. The DNR pays the ad valorem taxes for the year of acquisition. After that, a PILT statement should be submitted.

  • Beginning in 2013, Section 8 of PA 603, 2012 required the property valuation determined by the Commission is to be the greater of: a. The prior year value established by the commission (which cannot increase each year by more than the CPI as defined in the Constitution or 5%, whichever is less). b. The taxable value calculated under MCL 211.27a which is the lessor of the following: Prior year taxable value minus any losses, multiplied by the lessor of 1.05 or the inflation rate multiplier, plus any additions or the property’s state equalized value.

  • Current rates. If current rates are not provided, a new bill will need to be submitted with the correct rates before a payment will be issued.

  • No. Public Act 603 of 2012 does not provide authority to local units to bill or for the payment of SET. SET assessments should not appear on the PILT billing statement; a new bill will need to be submitted if included before a payment will be issued

  • No, a new bill will need to be submitted if included before a payment will be issued. 

  • Yes, they need to be specifically identified as such, whether they are billed as a rate or a lump sum. If they are not identified they will not be paid unless a revised bill has been received.

  • No, a new bill will be need to be submitted before a payment will be issued.

  • The Department of Treasury will only pay on the value assessed by the State Tax Commission. A new bill will need to be submitted with the correct taxable values before a payment will be issued.