Contact Your State Reps Today and Tell Them to Oppose Income Tax Elimination Bill

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***UPDATE:   

The Michigan House just adjourned session for the day (Tuesday) after adopting a substitute version H-3 for HB 4001 that would reduce the income tax rate from 4.25% down to 3.9% by January 1, 2021 and stopping at that point.  Following hours of caucus and floor discussion, the new version was introduced and adopted on the House floor with no explanation of the new version.  The House Fiscal Agency analysis of the new proposal pegs the state’s General Fund loss in the first year and $195 million and progressing upwards to $1.1 billion in FY2021-22.  The H-3 version of the bill is now on 3rd reading in the House and has been listed for action on TODAY’s (Wednesday’s) House calendar. So it is just as important to contact your Reps today and ask them to oppose the sub version of HB 4001. Governor Snyder came out with a statement last night opposed to the revised bill (he was also against the original bill).

Legislation being considered in Lansing would eliminate the state income tax, potentially blowing a massive hole in our budget and destroying vital programs and services communities and your residents rely on every day. Let’s face it, nobody likes to pay taxes. But we need the services those taxes support – police and fire protection, road maintenance, street lighting, drinking water, libraries, parks, and the list goes on and on.

This plan to eliminate the state income tax is moving quickly and we need your help to oppose it. On Feb. 15, a state House committee passed out HB 4001, which would cut $680 million from the state budget in the first, partial year alone. This idea is poor fiscal policy that would harm the state’s future ability to provide critical services for its residents, communities, and businesses. There is no question that with revenue reductions of that magnitude, the remaining statutory revenue sharing payments would be at risk and any future restoration of the cuts from the past decade would be a virtual impossibility.

Proponents of the tax cut say it would spur economic growth and allow people living paycheck to paycheck to see meaningful tax relief and allow them to buy more. A recent Midland Daily News editorial disagreed and broke it down like this: “But the reality is that is a bunch of bunk. A person making $50,000 a year would see a tax cut of $175 — about $3.37 per week (48 cents a day). That’s hardly going to bail out people living paycheck to paycheck and is a very minimal increase in buying power.”

Governor Snyder and Michigan Treasurer Nick Khouri also have spoken against the proposal and recent polling reveals little support for an income tax cut from voters, regardless of political party or geography, and almost no support once voters are told of the impact of the repeal. The poll found 74 percent of people oppose the idea of eliminating the income tax without a plan to replace revenue lost by the state.

Michigan communities have already lost $7.5 billion in revenue sharing dollars since 2002. This is money that should have gone to local communities, but instead state leaders kept the funds for their own budget priorities. Further risking cuts in revenue sharing, coupled with the dramatic declines in property tax revenues from the Great Recession, will only further devastate local governments. We should be talking about growth, not more cuts. With Michigan’s economy finally recovering, we should be looking for ways where our communities can share in that recovery, not push them further into crisis.

Please contact your State Representative today (look up their contact information by clicking here) and tell them to oppose HB 4001.

Matt Bach is director of media relations. He can be reached at mbach@mml.org.

Legislative Committee Orientation Event at Capitol Teaches Ins and Outs of State Politics

League staff John LaMacchia and Chris Hackbarth at the Legislative Committee Kick-Off Orientation Thursday.

League staff John LaMacchia and Chris Hackbarth at the Legislative Committee Kick-Off Orientation Thursday.

(View more photos here)

About 60 local municipal officials from throughout the state were at the state Capitol Thursday in Lansing for the Michigan Municipal League’s Legislative Committee Kick-Off Orientation. The first-time event for the League was highly successful as members from the League’s various legislative policy committees heard from state lawmakers, League staff and communications experts.

The League makes policy decisions based on the input from its five League policy committees that are broken into topics – energy, environment and technology (chaired by Brighton City Manager Nate Geinzer); land use and economic development (chaired by Lake Isabella Village Manager Tim Wolff); municipal finance (chaired by Howell City Manager Shea Charles); municipal services (chaired by Novi City Manager Pete Auger); and transportation infrastructure (chaired by Farmington Hills Public Services Director Gary Mekjian).

The event was hosted by State Rep. Dan Lauwers in the Speakers Library in the Capitol across the street from the League’s Lansing office. Lauwers welcomed the group to the Capitol and was followed by League CEO and Executive Director Dan Gilmartin who thanked the members for their services on the policy committees and explained how important their work is to the League’s success as an organization.

State legislators speak at the Legislative Committee Kick-Off Orientation Thursday.

State legislators Rep. Christine Greig, Rep. James Lower and Sen. Ken Horn speak at the Legislative Committee Kick-Off Orientation Thursday. Kyle Melinn (left), co-owner of MIRS News Service, was moderator of the panel discussion.

Other event speakers were League staff members Chris Hackbarth, director of state and federal affairs; John LaMacchia, assistant director of state and federal affairs; Jennifer Rigterink, legislative associated; Emily Kieliszewski, member engagement specialist; and Shanna Draheim, policy director. There was also a panel discussion moderated by Kyle Melinn, news editor and co-owner of Michigan Information and Research Service (MIRS) and featuring State Rep. Christine Greig, House Democratic Floor Leader; State Rep. James Lower; and State Sen. Ken Horn.

Local officials listen to a presentation at the Legislative Committee Kick-Off Orientation Thursday.

Local officials listen to a presentation at the Legislative Committee Kick-Off Orientation Thursday.

Policy committee members from throughout the state attended representing the following communities: Village of Beverly Hills, City of Novi, City of Flushing, City of Gibraltar, City of Wyoming, Village of Copemish, City of Dexter, City of Center Line, City of Howell, City of Southgate, City of Grosse Pointe, Village of Chesaning, City of Livonia, City of Taylor,
City of Brighton, City of Charlotte, City of Westland, City of Woodhaven, City of Springfield, City of Dearborn Heights, City of Ann Arbor, Village of Mendon, City of Grand Blanc, City of Menominee, City of Midland, City of Berkley, City of St. Clair Shores, Village of St. Charles, City of Ovid, City of Monroe, City of Ann Arbor, City of Hazel Park, City of Douglas, City of Farmington Hills, City of Mt. Pleasant, City of Hamtramck, City of Alma, City of Hastings, City of Farmington Hills, City of Grandville, City of Dexter, City of Adrian, City of Rochester Hills, City of Orchard Lake, City of Cadillac, City of Rochester
City of Plymouth, City of Wayne, Village of Cassopolis, City of Dexter, City of Milan, City of Midland, Village of Sparta, City of Alpena, City of Saline, City of Gladstone, City of East Lansing, City of Clio, Village of Lake Isabella, Village of Blissfield, and Village of Quincy.

Dusty Fancher and Dave Waymire speak at the Legislative Committee Kick-Off Orientation Thursday.

Dusty Fancher and Dave Waymire speak at the Legislative Committee Kick-Off Orientation Thursday.

After lunch, the group heard about communications, public relations and the insider’s guide to lobbying from Dave Waymire, partner at Martin Waymire; and Dusty Fancher, partner with Midwest Strategy Group.

To learn about the latest legislative issues involving Michgian’s communities, subscribe to the League’s Inside 208 blog here: http://blogs.mml.org/wp/inside208/ (view subscribe box on right side of page). Learn more about the League’s policy committees here: http://www.mml.org/advocacy/committee/index.html. View additional photos from the event here.

Matt Bach is director of media relations for the League. He can be reached at mbach@mml.org and 734-669-6317.

Governor Snyder Signs Recreational Authorities Bill with Support from Big Rapids and League

The League's Chris Hackbarth and League Member and Big Rapids Mayor Mark Warba (green tie) joined Governor Rick Snyder in signing HB 4578.

The League’s Chris Hackbarth and League Member and Big Rapids Mayor Mark Warba (green tie) joined Governor Rick Snyder in signing HB 4578.

Today, the Michigan Municipal League’s Chris Hackbarth and League Member and Big Rapids Mayor Mark Warba joined Governor Rick Snyder in signing House Bill 4578.

The new law clarifies the use of tax proceeds by a recreational authority and is expanded to include school districts. Working in conjunction with officials from the City of Big Rapids, the League was successful in getting the legislation approved with support from bill sponsors Sen. Darwin Booher, R-Evart; and Rep. Phil Potvin, R-Cadillac. View a previous blog about the legislation here.

The legislation, modeled on similar legislation from previous sessions, expands the definition of an eligible municipality to include a school district. This change also allows a city, village, or township to partner with a school district to form a recreation authority allowing broader access to recreation programming and facilities throughout a region.

Thank you to Mayor Warba and other Big Rapids area officials for their support on this bill! We also like to thank bill sponsors Sen. Darwin Booher, R-Evart; and Rep. Phil Potvin, R-Cadillac.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and 734-669-6317.

Lame Duck Legislative Work Underway; Sign up for Inside 208 Updates!

subscribe-here-arrowThe Lame Duck session of the state Legislature is in full swing and there are a number of key issues potentially impacting your communities that the Michigan Municipal League is working on and watching. WE MAY NEED YOUR HELP over the next several days as the Legislature currently has session scheduled through Dec. 15.

For regular updates on what is happening, the League strongly encourages you to sign up to receive email alerts from our Legislative blog, Inside 208. Please go here and sign up in the “subscribe” box on the right side of the page by typing in your email address. This is a free service provided to League members and you will receive emails each time a new Inside 208 blog is posted about the latest Legislative activity happening in Lansing. As issues arise, the League will be posting regularly on Inside 208 and we may be asking you to contact your Legislators on various bills.

Currently, there are multiple pieces of legislation the League is following that could have both a positive and/or a negative impact on your communities.

Some of major issues we have blogged about so far include bills to reform Other Post-Employment Benefits (OPEB) or retirement health care, changes to Tax Increment Finance (TIF) Authorities, a bill that limits local control on transportation network companies and taxis (think Uber and Lyft), new economic development tools, and potential energy reform.

Please help us by signing up to receive our Inside 208 blog emails during this quickly-moving, ever-changing Lame Duck legislative sessions.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and 734-669-6317.

Lame Duck Agenda Whispers in Michigan Legislature

MIRS article related to a OPEB issue.

MIRS article related to a OPEB issue.

In case you didn’t see it, there was a recent article in MIRS quoting Governor Snyder as suggesting municipal retirement health care reforms could be considered during the upcoming lame duck legislative session. This is an issue that the League has identified as a key cost driver for communities (www.SaveMICity.org) and is a major area of interest for our members.

While there are only between nine and eleven session days currently scheduled and no bills or proposals to react to, we are monitoring this issue very closely and working to ensure that should any proposal surface, municipal concerns and fiscal stresses will be at the forefront of the debate.

In terms of background on this issue: for over a year now, the Michigan Municipal League has been advocating for the need to reform the state’s municipal finance system. The League Board of Trustees approved a platform of municipal finance reform centered around cost, structure, and revenue.

opeb-chart-with-percentagesThe single biggest cost reform identified by our members is the need to restructure our retiree health care obligation, commonly known as OPEB – “Other Post-Employment Benefit”. The data (view pie chart and go here) supports what our members have repeatedly told us: the escalating costs of providing retiree health care benefits, not pensions, are the biggest impediment and greatest threat to investing in their communities.

We will continue to keep members updated if there are any developments along this topic.

(Posted by Matt Bach, League director of media relations, on behalf of Chris Hackbarth).

Please feel free to contact Chris Hackbarth if you have any questions: 517-908-0304 and chackbarth@mml.org.

Outstanding ‘Boxed In’ Documentary Film Explains Dark Stores Tax Loophole Issue in Michigan

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There is a fantastic new documentary film that does an outstanding job explaining the complex, yet devastating “Dark Stores” tax loophole issue facing Michigan communities. This is a hot topic the Michigan Municipal League has been fighting for more than a year and at a compact 24-minutes it is great film to show in your local communities when explaining this issue.

“Boxed In” is a documentary by Northern Michigan University Professor Dwight Brady, an Emmy Award winning producer, and 14 NMU students.

It premiered in Marquette Aug. 24 and will be shown again Wednesday, Aug. 31, in Escanaba at 7 p.m. in the Besse Theater at Bay College.

You can watch the documentary and read more about it, including a press release, here: http://boxedin.news/what-is-boxed-in-all-about/.

Attorney Jack Van Coevering is featured in 'Box In'.

Attorney Jack Van Coevering is featured in ‘Box In’.

You can also read more information about the Dark Stores issue on the League’s Dark Stores resource page here: http://www.mml.org/advocacy/dark-stores/.

In essence, the Dark Store theory is a tax loophole scheme being used by Big Box retailers to lower the amount they pay in property taxes. Retailers such as Meijer, Lowe’s, Target, Kohl’s, Menards, IKEA, Wal-Mart and Home Depot across Michigan are arguing that the market value of their operating store should be based on the sales of similar size “comparable” properties that are vacant and abandoned and may not even be located in Michigan. The stores also place deed restrictions on the vacated buildings that greatly limit what can go in the buildings once they are empty and become dark.

A bill to address the issue was overwhelming approved in the Michigan House in a 97-11 vote (http://blogs.mml.org/wp/inside208/2016/06/08/dark-stores-fix-wins-approval-in-house/) in June, but is pending in the state Senate where greater opposition is expected.

An example of a Dark Store. Big Box stores argue vacant, or dark stores, like this one should be used as a comparable for tax evaluation purposes when valuing a vibrant, open big box store. Unfortunately the Michigan Tax Tribunal since 2010 has started to agree.

An example of a Dark Store. Big Box stores argue vacant, or dark stores, like this one should be used as a comparable for tax evaluation purposes when valuing a vibrant, open big box store. Unfortunately the Michigan Tax Tribunal since 2010 has started to agree.

The documentary film started out as a class project but it quickly developed into a much larger story that took Dr. Brady and his students from Marquette, to Lansing, Grand Rapids, Detroit, Grand Blanc and other other stops along the way.

They interviewed 15 different sources, including State Rep. David Maturen, who authored the bill that was approved in the House. The bill would require the Michigan State Tax Tribunal to follow traditional methods of assessing property.

The students also interviewed Grand Blanc Township Superintendent Dennis Liimatta, current Chair of the Michigan Tax Tribunal, Steven Lasher, and Former Chief Judge Jack Van Coevering to get different perspectives on the issue. Read more about the film here: http://boxedin.news/what-is-boxed-in-all-about/.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and 734-669-6317.

Got Blight? Money Available for Local Governments for Targeted Demolition

Got blight? Our friends at MSHDA asked that we share this with our member communities:

MSHDA 2016 Hardest Hit Blight Elimination NOFA

The Michigan Homeowner Assistance Non Profit Housing Corporation (MHA) working in conjunction with the Michigan State Housing Development Authority (MSHDA) is seeking proposals in support of targeted demolition activity within local units of governments across Michigan with the goal of initiating or triggering private investment and development; supporting current investment and development; and to promote the increase in values of the surrounding areas. Proposals selected to participate in the Hardest Hit Blight Elimination Program will be funded by an award MHA received from the U.S. Department of Treasury. MHA and MSHDA are partners but separate entities.

For further information on MHA, contact Mary Townley on behalf of MHA at 517-373-6864 or townleym1@michigan.gov.

LaMacchia: Infrastructure Issues in Flint Symptom of Larger Problem

The League's John LaMacchia (center, right) and fellow panelists.

The League’s John LaMacchia (center, right) and fellow panelists.

What’s happening in Flint, Detroit and other cities is a symptom of a larger problem. A problem where cities in Michigan are only allowed to fall with the economy but not to prosper as the economy grows. And it’s only going to get worse if we don’t change the way the nation invests in communities.

This was a key message by the Michigan Municipal League’s John LaMacchia when speaking Thursday in Washington D.C. as part of Infrastructure Week 2016. The Infrastructure Week celebration organized by the National League of Cities and its partners is to raise awareness about the nation’s infrastructure needs. Cities construct and maintain the majority of our nation’s infrastructure and depend on a solid infrastructure network to provide safe and healthy communities, and grow their local economies.

The League's John LaMacchia is in Washington D.C. this week for the National League of Cities Infrastructure Week celebration. As part of his work, LaMacchia (center left) met with U.S. Rep. Dan Kildee (right).

The League’s John LaMacchia is in Washington D.C. this week for the National League of Cities Infrastructure Week celebration. As part of his work, LaMacchia (center left) met with U.S. Rep. Dan Kildee (right).

LaMacchia, assistant director of state affairs for the League, spoke as part of a panel discussion on “Securing Our Water Future: 21st Century Solutions for 21st Century Cities”. Other panelists were Council Member Matt Zone, City of Cleveland, Ohio, and National League of Cities 1st Vice President; Council Member Ron Nirenberg, City of San Antonio, Texas, and Chair, National League of Cities Energy and Environment Committee; Commissioner Heather Repenning, President Pro Tempore, Los Angeles Board of Public Works; Tyrone Jue, Senior Advisor on Environment to Mayor Ed Lee, City of San Francisco, California; Jonathan Trutt, Executive Director, West Coast Infrastructure Exchange; and Clarence E. Anthony, CEO and Executive Director, National League of Cities.

LaMacchia discussed the Flint water crisis and explained how the Flint issue is part of a much larger infrastructure problem in communities statewide.

Some of his key points included:

  • Flint Mayor Karen Weaver and Gov. Rick Snyder agree Flint’s lead-tainted service lines need to be removed. But it will take at least $55 million to replace all the lead-tainted lines. Money for water infrastructure has been put into appropriations bills in the Michigan Legislature and U.S. Congress, but the bills are still making their way through those legislative bodies.
  • The service lines are just part of the problem. The rest of Flint’s water system, from aging water mains to other infrastructure, needs to be totally replaced. The city’s water system loses a large percentage of the water to leaks, one reason Flint has some of the highest water rates in the country. Again, the City of Flint will need help from the state and federal governments to modernize its water infrastructure, a process that is expected to cost of hundreds of millions of dollars.
  • When we look at Michigan as a whole we have neglected to properly invest, maintain and right size our infrastructure.
    The league's John LaMacchia speaks on a panel during Infrastructure Week in Washington D.C. May 19, 2016.

    The League’s John LaMacchia speaks on a panel during Infrastructure Week in Washington D.C. May 19, 2016.

  • For nearly 30 years Michigan has been about 10 million people yet we have increased the amount of infrastructure in the state by roughly 50% and giving little thought to how we would maintain both the old and new infrastructure.
  • Time and time again we have built new water and sewer plants without capitalizing on the existing capacity of a nearby system.
  • This not only speaks to how we have been inefficient in managing infrastructure in Michigan but also how we have disinvested in our communities in general.
  • Why cities are important: Our goal at the Michigan Municipal League is to make Michigan communities places people want to be. Places that can attract a talented work force and businesses. Having placemaking strategies in all communities is important. But it’s hard to even think about creating great places when you’re fighting every day not to drown. How can you attract businesses and a work force if your roads are crumbling, bridges are in disrepair and you’re communities have slashed the number of police officers, firefighters, public works employees and more?
  • The numbers show that some states – particularly Michigan – do not understand the importance of cities as economic drivers. If they did they would be investing in cities. But unfortunately they are disinvesting in cities.
  • According to U.S. Census data all but one state showed growth in municipal general revenue between 2002 and 2012. View chart here.
  • Many want to blame this on a single state recession but the numbers tell a different story.
  • Why is this the case in Michigan – property values decrease in 2008 crash and the Michigan Constitution limits their ability to recover, PLUS revenue sharing to the tune of $7.5 billion over the last decade plus.

LaMacchia concluded explaining Michigan’s system for funding municipalities is fundamentally broken and unless it gets fixed we’re going to see more situations like what’s happening in Flint and Detroit occur in other communities.

Also earlier this week, NLC released a new report called, Paying for Local Infrastructure in a New Era of Federalism. Read a blog about the report by the League’s Summer Minnick.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and 734-669-6317.

League’s John LaMacchia in Washington D.C. Talking Infrastructure

The League's John LaMacchia.

The League’s John LaMacchia.

The Michigan Municipal League’s John LaMacchia will be in Washington D.C. Thursday to participate in Infrastructure Week 2016. The celebration organized by the National League of Cities and its partners is to raise awareness about the nation’s infrastructure needs. Cities construct and maintain the majority of our nation’s infrastructure and depend on a solid infrastructure network to provide safe and healthy communities, and grow their local economies.

LaMacchia, assistant director of state affairs for the League, will speak 2:30-4 p.m. Thursday, May 19, as part of a panel discussion on “Securing Our Water Future: 21st Century Solutions for 21st Century Cities”. The panel discussion will be live-streamed on the NLC’s Facebook page.

Other panelists are Council Member Matt Zone, City of Cleveland, Ohio, and National League of Cities 1st Vice President; Council Member Ron Nirenberg, City of San Antonio, Texas, and Chair, National League of Cities Energy and Environment Committee; Commissioner Heather Repenning, President Pro Tempore, Los Angeles Board of Public Works; Tyrone Jue, Senior Advisor on Environment to Mayor Ed Lee, City of San Francisco, California; Jonathan Trutt, Executive Director, West Coast Infrastructure Exchange; and Clarence E. Anthony, CEO and Executive Director, National League of Cities.

LaMacchia will discuss the Flint water crisis but he’ll explain how the Flint issue is part of a much larger infrastructure problem in communities statewide.

Also earlier this week, NLC released a new report called, Paying for Local Infrastructure in a New Era of Federalism. Declining funding, increasing mandates and misaligned priorities at the federal and states levels have put responsibility for infrastructure on local governments. But what ability do cities have to take up this call? The authority of cities to meaningfully address growing infrastructure challenges is bound by levers authorized to them by their states. The study finds that cities are limited in the number and scope of tools they are authorized to use, and that access to these tools is highly uneven in states across the country. Read a blog about the report by the League’s Summer Minnick.

View the report here: http://www.nlc.org/find-city-solutions/city-solutions-and-applied-research/infrastructure/local-infrastructure-funding-report

View the full infrastructure week schedule here: http://www.nlc.org/influence-federal-policy/infrastructure-week-2016

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org.

PPT Reimbursement and Budget Preparation Guidance from Michigan Department of Treasury

The Michigan Department of Treasury has asked us to share some information detailing changes to the Personal Property Tax local government reimbursements for 2016-17 budget preparation. Treasury has prepared a document below and requested the Michigan Municipal League pass it along to our members. If you have any questions, there is contact information at the end.

Here is the information from Treasury:

In 2012, legislation was passed providing new personal property tax exemptions for small taxpayers (starting in 2014) and eligible manufacturing personal property (EMPP, phase-in starting in 2016).  The Local Community Stabilization Authority (LCSA) Act, 2014 PA 86, requires reimbursement for the loss from the personal property exemptions.  The payments are made using the Authority’s share of the 6% use tax.

How the Loss in Taxable Value is Measured.  Beginning for 2016, the personal property exemption loss is calculated by subtracting each local unit’s current year taxable value of all industrial and commercial personal property from its 2013 taxable value of industrial and commercial personal property.  Calculations include IFT property, with IFT new facility TV reported at 50%.  Calculations exclude property classified as either industrial or commercial personal in one year but classified as either real property or utility personal in the other year.  County equalization directors will report the personal property exemption loss amounts to Treasury.

Millage Rates Being Reimbursed.  All types of millage are being reimbursed.  Except for local school district/ISD debt millage, reimbursements are calculated using each taxing unit’s sum of the lowest rate of each individual millage levied between 2012 and the immediately preceding year.  Treasury posts these rates on the Internet by May 1 of each year.  School districts/ISDs must report their current-year debt millage to Treasury by August 15.

Calculation of Reimbursements.  The personal property exemption loss is multiplied by the millage rates being reimbursed.  It is estimated there will be 100% reimbursement for all losses.  While all millages are being reimbursed, the reimbursements for certain losses and millage are calculated separately.  The following losses/millages are guaranteed 100% reimbursement:

  • Local school district and ISD millages;
  • Millage used to fund essential services, i.e. police, fire, ambulance and jails, including the loss from expiring tax exemptions that is reported on Form 5403 by the assessor;
  • Tax increment financing loss, including, for certain TIF plans, any loss from increased captured value; and
  • 2015 small taxpayer exemption loss.

Reimbursement for other millages may be at less than 100% or more than 100%, depending on the total calculated losses for those millages and the $ available for reimbursement.  We estimate the LCSA will have sufficient $ to reimburse all losses at 100%.

Beginning for 2019, 5% of the $ available for reimbursement under the previous paragraph will be distributed based on each taxing unit’s share of EMPP tax loss calculated using a modified acquisition cost of exempt EMPP.  That 5% is increased by 5% each year for 20 years, until no $ are distributed under the previous paragraph.

Taxing units will not have to claim reimbursement, except for tax increment financing plans, which will file Form 5176.  Reimbursements for most millage will be calculated using millage rates already available to Treasury.  Most local school districts receive reimbursement for their basic operating mills through operation of the state school aid formula.

Timing of reimbursements.  Reimbursement for county allocated millage will be paid on September 20th.  Reimbursement for other county millage, township millage, and other millage levied 100% in December will be paid the following February 20.  All other millage reimbursements will be paid on October 20th.

Fiscal Year 2016-2017 budget preparation.  In estimating FY 17 revenues, for the millage rates being reimbursed, local units should assume that their FY 17 property tax revenues from industrial/commercial personal property, including LCSA reimbursement, will equal their FY 14 property tax revenue from industrial/commercial personal property.  Millage increases after 2012 will not be reimbursed.

Total Amount of Reimbursements.  Reimbursements will total $374 million for calendar year 2016 losses, increasing to over $500 million for calendar year 2021 losses, as the EMPP exemption phases in.

For additional personal property tax reimbursement information, please email TreasORTA@michigan.gov, or call 517-373-2697.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org.