Preliminary information for the Wholesale Marihuana Tax is now available.
The following frequently asked questions are being provided as a service to assessors and taxpayers to better inform them about the administration of 1994 Public Act 451, Part 59, as amended.
Note: The information contained in these frequently asked questions constitutes an analysis of one or more statutes and not legal advice. Since the analysis is limited to general statutory requirements, individual facts may result in different conclusions being reached. Therefore, individuals should consult legal counsel.
The Air Pollution Control Exemption, 1994 PA 451, Part 59, as amended, affords a 100% property and sales tax exemption to facilities that are designed and operated primarily for the purpose of controlling or disposing of air pollution that, if released, would render the air harmful or inimical to the public health or property within this State. After review by the Community Services Division in Treasury and the Department of Environment, Great Lakes, and Energy (EGLE) a recommendation is made to the State Tax Commission (STC) regarding the qualification of the application. The STC is responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC.
Applications, including the required accompanying documents, are filed with the STC. Air Pollution Control Tax Exemption Certificate applications can be found on the Michigan Department of Treasury website at the following address: https://www.michigan.gov/taxes/property/exemptions
The accompanying documents required to be included with an application for an Air Pollution Control Tax Exemption Certificate are as follows:
Applications are filed by the company requesting the exemption on their qualified property with the STC.
Completed applications received by the Department of Treasury on or before June 15th will be processed. Applications received by the Department of Treasury after June 15th will be acted on as expeditiously as possible.
Issuance of an Air Pollution Control Tax Exemption Certificate by the STC is based on a determination by EGLE that the facility meets the qualification requirements of 1994 PA 451, Part 59, as amended and by a determination of the STC that the application is complete and meets statutory requirements.
An applicant should consult engineering professionals and legal counsel to review the proposed exemption request. The determination of the qualifications of a piece of equipment/component as a “facility” under the statute is based on the use of that equipment/component at the specific pollution control site.
Generally, the following equipment/components do not meet the definition of an air pollution control facility:
Equipment/components used to manufacture air pollution control equipment/components. This equipment/component is process equipment/components and are a benefit to business.
Yes. An application can be denied if EGLE or the STC determines that the facility was not designed primarily to control, capture or remove air pollutants that if released would render the air harmful or inimical to the public health, does not meet the intent and purpose of part 55 and rules promulgated under that part, or to property within the state or if the application is incomplete.
A party aggrieved by the issuance, refusal to issue, revocation, or modification of an Air Pollution Control Tax Exemption Certificate may appeal the decision of the STC as provided in the Administrative Procedures Act, PA 306 of 1996, as amended.
An Air Pollution Control Tax Exemption Certificate approved by the STC remains in effect until the pollution equipment/component is no longer in place or no longer used for the primary purpose of pollution control.
The effective date of the certificate is the date the certificate is issued by the STC
For the period subsequent to the effective date of the certificate and continuing for as long as the certificate is in force, a facility covered by the certificate is exempt from real and personal property taxes imposed under the General Property Tax Act, 1893 PA 206, as amended.
Special assessment millage rates may be impacted. Millage-based special assessments levied under 1951 Public Act 33, as amended, do not apply to property with an Air Pollution exemption. However, the special assessments would still be applicable to the land on which the Air Pollution exemption property is located. Conversely, for millage-based special assessments levied under public acts other than Public Act 33 of 1951, as amended, property with an Air Pollution exemption pays on the full special assessment millage rate, the same as any “ad valorem” property.
If equipment/component which is currently qualified under an Air Pollution Control Tax Exemption Certificate has become outdated and the company wishes to replace it, an amendment needs to be made to the existing certificate by application or a new application needs to be submitted.
Yes, if the subject equipment/component or facility has not previously been certified as pollution control for the purpose of granting a tax exemption.
If the application is incomplete, it will not be forwarded to EGLE for review. The applicant will be contacted by Treasury staff to provide the missing or incomplete information. If the information is not received in the allotted time, the application may be considered withdrawn.
If, during the application review, EGLE determines that an application is incomplete or missing required information, they will notify the STC in writing. The applicant will need to provide any additional requested information within 30 days of a request from either the STC or EGLE. If the applicant fails to respond to the request for additional information within 30 days, the application may be considered withdrawn.
Yes. An application must be completed for the transfer to be processed. Check the box on the application marked transfer and under source identification list the company for which the transfer has been requested.
Yes. Upon notice by certified mail to the applicant and offering an opportunity for a hearing, the State Tax Commission, on its own initiative or upon complaint of EGLE, the Department of Treasury, or the assessor of the taxing unit in which any property to which the certificate relates is located, shall modify or revoke the certificate if any of the following appear:
The revocation of an Air Pollution Control Tax Exemption Certificate is effective December 30th of the year in which the STC revoked the certificate.
Per 1994 PA 451, Part 59, as amended, “facility’ means machinery, equipment, structures, or any part or accessories of machinery, equipment, or structures, installed or acquired for the primary purpose of controlling or disposing of air pollution that if released would render the air harmful or inimical to the public health or to property within this State.
Facility includes an incinerator equipped with a pollution abatement device in effective operation. Facility does not include an air conditioner, dust collector, fan, or other similar facility for the benefit of personnel or of a business. Facility also means the following, if the installation was completed on or after July 23, 1965:
Recovery means the gross annual commercial or productive value derived from any materials captured or recovered by the air pollution control facility. The captured materials are then sold for a profit. The value to be exempt from property taxation as provided by 1994 PA 451, Part 59, as amended, for eligible air pollution control facilities shall be the cost of the facility entitled to exemption reduced by the gross annual commercial or productive value derived from any materials captured or recovered by the air pollution control facility.
Air and water pollution control facilities and/or wind or water energy conversion devices may qualify for exemption from taxation if an exemption certificate has been issued by the STC on or before December 31st of the prior tax year. If you claim such an exemption, check “Yes” on page 1, line 2 of the Treasury Form 632 (Personal Property Statement) and attach an itemized listing of the certificate numbers, dates of issuance and amounts.
The STC grants exemption of the sales and use tax through issuance of a certificate for qualified water or air pollution control facilities. This exemption may include portions of real property as well as equipment/components and other items of tangible personal property. The Department of Treasury will not allow an exemption until it has received a signed exemption certificate from the STC. However, after a certificate is granted, refunds will be authorized. Requests for refund review as well as other information may be obtained from the Technical Section of the Department’s Sales, Use and Withholding Taxes Division at (517) 636-6925.
Copies of certificates acted upon by the State Tax Commission after January 1, 2013, are available on the Department of Treasury website at: https://www.michigan.gov/taxes/property/exemptions. Choose the exemption program under which the certificate was issued. Within the “Certificate Activity” link, the certificates are listed according to the date they were acted upon.
