Last week the Senate passed Senate Bills 489 and 490, bills that are the first “fix” bills from the personal property tax (PPT) reform package that passed in December. The bills clarify the process for a businesses to claim exemptions under the legislation.

The League has been an active part of a drafting group of local government and business representatives who have been working on bills that would clarify the process for claiming PPT exemptions under the new legislation.

Beginning December 31, 2013, businesses will be eligible to claim a “small parcel” PPT exemption if the total value of their personal property in a tax collecting unit is $80,000 (true cash value) or less.  The remainder of the package does not go into effect until December 31, 2015; however, the package is contingent on the passage of a statewide vote in August 2014.

The League was neutral on the bills as they do reflect the work of the drafting group. You can view a copy of the League’s letter to the Senate Finance Committee here: Senate finance 9_13.

We are expecting additional legislation this fall to fix other outstanding issues including the essential services assessment and how we deal with tax capture districts. These two bills now head to the House for consideration.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org