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Local Government Reimbursement Fund - Effective Tax Year 2023

The creation of the Local Government Reimbursement Fund is authorized by the Michigan Trust Fund Act.  Money from the fund shall be expended, upon appropriation, only for the purpose of reimbursing municipalities, by May 31, for personal property tax revenue lost as a result of Small Business Taxpayer Exemption (SBTE) claims.  SBTE claims are filed by taxpayers that own, lease, or possess eligible personal property having a combined true cash value equal to or greater than $80,000 but less than $180,000.

Michigan Trust Fund Act (Section 3a of 2000 PA 489)

Beginning Fiscal Year 2024, $75M must be deposited into the Local Government Reimbursement Fund from the state share of Use Tax.

Use Tax Act (Section 21(7) of 1937 PA 94)