Emergency-related state tax relief available for taxpayers located in two counties of Michigan impacted by severe weather.
Learn About Disaster Relief
Qualified Heavy Equipment Rental Personal Property (QHERPP) 90% Distribution
Qualified Heavy Equipment Rental Personal Property (QHERPP) 90% Distribution
Qualified Heavy Equipment Rental Personal Property (QHERPP) 90% Distribution Allocation Guidance
The QHERPP 90% distributions are made to cities and townships with Qualified Renter Business Locations (QRBLs) that remitted taxes to Treasury during the distribution collection period. Distribution collection periods are January through June and July through December. Distributions are calculated by prorating the amount of the QHERPP tax remitted by each QRBL during the distribution collection period.
Cities and townships that received QHERPP 90% distributions must apportion and allocate the distributions to other taxing units that levied millages on each QRBL.
Required Allocations
- Per 2022 PA 35 Section 9(5)(b)(i), within 35 days of receiving a QHERPP 90% distribution, cities and townships must apportion and allocate QHERPP distributions to other taxing units (which may include, but is not limited to, villages, counties, authorities, school districts, and intermediate school districts) that levied a millage on the QRBL in the prior calendar year.
- The allocation calculation can be found in 2022 PA 35 Section 9(5)(b)(i)(A), (B), and (C).
- Use millage rates for the prior calendar year. For example, if the QHERPP 90% distribution being allocated is related to calendar year 2023, use 2022 millage rates for the allocation.
- Cities and townships may use the QHERPP 90% Distribution - Allocation Template to assist in determining the amount to allocate to each taxing unit for each QRBL. This template is available to assist cities and townships if they choose.
- Per 2022 PA 35 Section 9(5)(b)(i)(D), within 35 days of receiving a QHERPP 90% distribution, cities and townships must remit the following to Treasury for credit to the School Aid Fund:
- The amount that would otherwise be distributed to a local school district for school operating purposes.
- All or the portion that would otherwise be distributed to an intermediate school district (ISD) receiving state aid under Section 56 (special education) or 62 (vocational-technical education) of the State School Aid Act (1979 PA 94, MCL 388.1656 and 388.1662, to be determined based on the tax rates used to compute the amount of state aid.
- Local units may refer to Appendix 1 (Percent of Intermediate School District Share) of Form 170 - Industrial Facilities Tax Report to compute the amount of the allocation that must be remitted to Treasury.
- For 2023 QHERPP 90% distributions, cities and townships should use the "2023 % ISDs May Keep" column to determine the percentage the ISD receives. The remainder must be remitted to Treasury.
- For example, if the ISD portion of the 2023 QHERPP 90% allocation is $100 and the percentage in the "2023 % ISDs May Keep" column in Appendix 1 is 100%, the ISD receives $100. If the percentage in Appendix 1 is 13.207%, the ISD receives $13.21 and the remaining $86.79 is remitted to Treasury.
- Local units may refer to Appendix 1 (Percent of Intermediate School District Share) of Form 170 - Industrial Facilities Tax Report to compute the amount of the allocation that must be remitted to Treasury.
- Return and Remittance:
- Cities and townships must complete Form 3865 State Share of Specific Local Taxes Return.
- The QHERPP allocation to the School Aid Fund should be reported on Line 7.
- Cities and townships should submit the completed Form 3865 to Treasury with a check payable to "State of Michigan."
- For questions regarding allocations to the School Aid Fund, please contact the Community Services Division at 517-335-4669 or TreasStateSharePropTaxes@michigan.gov.