Skip to main content
Personal Property Tax Reimbursements

Personal Property Tax Reimbursements

Personal Property Tax Reimbursements

Beginning for calendar year 2016, the Local Community Stabilization Authority (LCSA) Act, 2014 Public Act 86, (MCL 123.1341 to 123.1362) requires personal property tax reimbursement for all operating and debt millages.

Overview of 2020 LCSA Act Amendments

Overview of 2018 LCSA Act Amendments

 

Local Community Stabilization Authority Act (2014 Public Act 86)

Local Community Stabilization Authority Act (2014 Public Act 86)

Amendatory Acts

School Districts and Intermediate School Districts (ISDs)

2022 PPT Reimbursement

2021 PPT Reimbursement

2020 PPT Reimbursement

2019 PPT Reimbursement

2018 PPT Reimbursement

2017 PPT Reimbursement

2016 PPT Reimbursement

Other Municipalities

2022 PPT Reimbursement

2021 PPT Reimbursement

2020 PPT Reimbursement

2019 PPT Reimbursement

2018 PPT Reimbursement

2017 PPT Reimbursement

2016 PPT Reimbursement

Tax Increment Finance Authorities

2022 PPT Reimbursement

2021 PPT Reimbursement

2020 PPT Reimbursement

2019 PPT Reimbursement

2018 PPT Reimbursement

2017 PPT Reimbursement

2016 PPT Reimbursement

Reimbursement Priority

  1. 100% reimbursement for:
    1. Local school district and intermediate school district (ISD) school debt loss, local school district sinking fund millage, and local school district recreation millage;
    2. ISD operating millages;
    3. School operating loss not reimbursed by the school aid fund (i.e. supplemental hold harmless millage and operating millage for out-of-formula local school districts);
    4. Millages used to fund essential services (i.e. police, fire, ambulance, and jails);
    5. Tax increment finance authority (TIFA) decline in captured value of commercial and industrial personal property;
    6. 2015 small taxpayer exemption loss (STEL);
    7. Beginning for calendar year 2019, distribution for fire protection funding to municipalities with state facilities: and
    8. Beginning for calendar year 2019, distribution of $10,000,000, in total, for required and allowable health services to municipalities that incur certain reasonable and allowable costs.
  2. For calendar years 2016 and 2017 only, distribution of the remaining LCSS revenue available to municipalities, other than local school districts, ISDs, and TIFAs, based on the municipality's proportionate share of total qualified loss.
  3. For calendar year 2018 and subsequent calendar years:
    1. Distribution of total qualified loss to municipalities, other than local school districts, ISDs, or TIFAs:
      1. Beginning for calendar year 2021, 10% of the total qualified loss is reimbursed based on the municipality’s proportionate share of total acquisition cost of all eligible manufacturing personal property (EMPP) statewide. This distribution type will phase-in an additional 10% each year.
      2. For calendar year 2018 to calendar year 2029, the total qualified loss less the amount distributed under 3.a.i. above is reimbursed based on the municipality’s proportionate share of qualified loss.  This distribution type will phase-out 10% in calendar year 2021, and an additional 10% each year.
    2. Distribution of the municipality’s current year corrected reimbursement. For calendar year 2018 only, distribution of the net underpayment of the calendar years 2016 and 2017 corrected reimbursements.
    3. For calendar year 2018 only, distribution of $13,600,000, in total, for fire protection funding to municipalities with state facilities.
    4. Distribution of the remaining LCSS revenue available to a county, township, village, city, or community college based on the municipality’s proportionate share of 3.1. and 3.2. above, less any current year reimbursement overpayment.

How to Calculate the Debt Millage Rate Reported on the L-4029

The LCSA Act requires a school district and intermediate school district to reduce its debt millage rate to reflect the school debt loss reimbursement that will be received (MCL 123.1353(4)).  The Michigan Department of Treasury will calculate a school debt loss reimbursement based on the personal property exemption loss reported by the county equalization director and either the debt millage rate reported on the Form 5451 or the debt millage rate calculated by the Michigan Department of Treasury (see the Millage Rate Comparison Reporting Requirement section below.)

Below is an example of how to calculate the debt millage rate.

A. 2019 Debt Service (adjusted for reserve and uncollectible taxes)                        $200,000

B. 2019 School Debt Loss Reimbursement                                                                     $2,000

C. 2019 Desired Debt Tax Levy (A minus B)                                                                     $198,000

D. 2019 Taxable Value                                                                                                            $100,000,000

E. 2019 Debt Millage Rate (C divided by D multiply by 1000)                                       1.9800 mills

Millage Rate Comparison Reporting Requirement

2022 PPT Reimbursement

Local School Districts

Intermediate School Districts

Other Municipalities

Taxable Values Used in the Personal Property Tax Reimbursement Calculations

The LCSA Act requires Treasury to annually post the commercial personal property and industrial personal property taxable values that were used in the reimbursement calculations (MCL 123.1358(5))

2022 PPT Reimbursement

2021 PPT Reimbursement

2020 PPT Reimbursement

2019 PPT Reimbursement

2018 PPT Reimbursement

2017 PPT Reimbursement

2016 PPT Reimbursement

Tax Increment Finance Authority (TIFA) Reimbursement Capture

The LCSA Act requires Treasury to subtract from a municipality's PPT reimbursement the portion that has been captured by one or more TIFAs, when the TIFA has received a PPT reimbursement, due to a decline in captured personal property taxable value related to the municipality's millages (MCL 123.1354(1)(d), MCL 123.1354(2)(d), MCL 123.1354(2)(f), MCL 123.1354(4)(d), MCL 123.1355(d), MCL123.1356(d), and MCL 123.1357(4)(b)(iv)).  The amount captured by the TIFAs may exceed the amount subtracted from a municipality's PPT reimbursement, if the TIFAs' decline in captured personal property taxable value exceeds the municipality's decline in personal property taxable value.

2022 PPT Reimbursement

2021 PPT Reimbursement

2020 PPT Reimbursement

2019 PPT Reimbursement

Forms for Calculation of PPT Reimbursements

Forms for Calculation of PPT Reimbursements

Questions Regarding ESA?

Visit the ESA (Essential Services Assessment) page.

Archive

View the Archive

Contact Information

For questions regarding the calculation of the personal property tax reimbursements, contact the Revenue Sharing and Grants Division, Michigan Department of Treasury at:

Phone: 517-335-7484

Email: TreasORTAPPT@michigan.gov

 

For questions regarding the status of personal property tax reimbursement payment, contact the Local Community Stabilization Authority at:

Phone: 734-726-4113

Email: contact@lcsami.gov

Website: www.localcommunitystabilizationauthoritymi.gov