The League co-hosted a webinar this afternoon with Howard Heideman from Treasury’s Office of Revenue and Tax Analysis as a continuation of our effort to provide information and greater access to Treasury as communities move through the initial phases of implementing the state’s new personal property tax system.  More than 125 members registered for today’s presentation, which follows along with meetings held earlier this summer in Muskegon and Marquette.

See below for the full webinar and referenced documents. In addition, please visit Treasury’s Personal Property Tax Reimbursements web page for more details.

A special thank you to Howard and to Treasurer Khouri for their partnership and assistance in this outreach effort!

Personal Property Tax Implementation Webinar from Michigan Municipal League on Vimeo.

Documents referenced in webinar:

Excel:
2016 PPT Reimbursement Draft – Example City

MS Word:
Form 5429 Example With Instructions

Form 5403 Expired Tax Exemptions – Example With Instructions

Chris Hackbarth is the League’s director of state affairs. He can be reached at 517-908-0304and chackbarth@mml.org.

Officials testify on the adverse possession issue. From right, Chris Hackbarth, Ann Arbor City Attorney Stephen Postema and Novi City Attorney Thomas Schultz.

In a flurry of activity following passage of the road funding package last week, both the House and Senate pushed through full agendas on Tuesday before breaking for the Thanksgiving holiday.  Included among the bills seeing committee and floor movement were a number of bills that the League is supporting.

• Senate Bill 372 (Zorn) provides for reciprocity for firefighter training and certification earned in another state.  The League has supported this legislation as it made its way through the Senate and the House.  The bill is now on its way to the Governor for his signature.
• House Bill 4904 (McBroom) was also sent to the Governor Tuesday.  As previously reported, this bill designates the March 2016 presidential primary election as a general election, allowing local ballot questions to be included on that election date.
• Senate Bill 556 (Horn), which extends the sunset date on the Commercial Rehabilitation Act, is one step closer to completion as the House floor positioned the bill for final passage upon their return following the legislative break.
• House Bill 4747 (Hughes) has been promoted by the League and the Michigan Association of Municipal Attorneys to correct a recent court decision that had opened the door to adverse possession of municipal property.  Working together over the past two years, the League and a group of municipal attorneys were successful in crafting language to address this problematic court decision.  At a recent House committee hearing, League staff and attorneys from Ann Arbor and cities in Oakland County testified in support of the bill.  The bill now moves to the House floor where we are requesting action in December.

Chris Hackbarth is the League’s director of state affairs. He can be reached at 517-908-0304and chackbarth@mml.org.

State Representative John Kivela, D-Marquette, and municipal officials testify Nov. 4 before the House Tax Policy Committee on the Dark Stores issue

The House Tax Policy committee met Wednesday, Nov. 4, 2015, to begin hearing testimony on the big box retail/dark store tax appeal issue.  The committee hearing was designed to provide an overview of the issue for the committee members, allowing assessing experts and local government officials to explain the issue and the impact of these appeals all around the state.  The committee room was filled to capacity, with many individuals forced to stand throughout the hearing.

Experts from the Michigan Assessors Association and the International Association of Assessing Officers described the process and analysis that goes into valuing property. They were followed by officials from Marquette and Chippewa County who testified about the impact that recent Michigan Tax Tribunal appeal decisions have had on their communities and the services they provide.  The committee also heard about the manipulation of property values that big box retailers are perpetrating through the placement of negative use deed restrictions to devalue buildings that they vacate and then point to later on as support for lowering their assessments.

Martin Marshall, president of the International Association of Assessing Officers, testifies on the Dark Stores issue.

As the time for the hearing started to run short, the committee heard from the Michigan Retailers Association (MRA) and their tax attorneys from Honigman Miller explain how they believe that no law change is needed. Through materials MRA has been providing legislators, they state that the problem is really about retailers being over-assessed by local governments as those local governments attempt to make up for lost revenue sharing and increased costs from “Cadillac” retiree healthcare plans. The Retailers assert that “Local governments are now encouraging assessors to overstep their boundaries and assess business property at a higher rate in order to pay for their government operations and benefits without harming communities.”

View the Dark Stores Coalition Letter 11-4-15 (003)

MML, MAC, MTA and numerous other organizations and local officials were not able to testify before the committee hearing ended, but the chair recognized the need to continue the discussion and is planning an additional hearing in early December where we will get a chance to address the committee and advocate for a legislative fix. The League coordinated with more than a dozen other organizations to submit a joint letter to the committee asking that they engage in enacting a solution. Along with organizing this coalition, the League is pursuing an aggressive public relations campaign to bring attention to this important issue through radio, television and print media. We urge your assistance with this effort by contacting your Senator and Representative to explain to them the importance of addressing these dark store appeals and restoring a fair and proper valuation system.

Chris Hackbarth is the League’s director of state affairs. He can be reached at 517-908-0304and chackbarth@mml.org.

State Representative John Kivela, D-Marquette, and municipal officials testify Nov. 4 before the House Tax Policy Committee on the Dark Stores issue

Update: Listen to a WJR radio show interview on this Dark Stores topic between the League’s Chris Hackbarth and WJR’s Frank Beckman: http://www.wjr.com/frankbeckmann/#. Be sure to listen to the subsequent interview between Beckman and State Rep. Jeff Farrington, R-Utica. (you’ll have to scroll down the page a bit and look under November 5). 

The House Tax Policy committee met Wednesday, Nov. 4, 2015, to begin hearing testimony on the big box retail/dark store tax appeal issue.  The committee hearing was designed to provide an overview of the issue for the committee members, allowing assessing experts and local government officials to explain the issue and the impact of these appeals all around the state.  The committee room was filled to capacity, with many individuals forced to stand throughout the hearing.

Experts from the Michigan Assessors Association and the International Association of Assessing Officers described the process and analysis that goes into valuing property. They were followed by officials from Marquette and Chippewa County who testified about the impact that recent Michigan Tax Tribunal appeal decisions have had on their communities and the services they provide.  The committee also heard about the manipulation of property values that big box retailers are perpetrating through the placement of negative use deed restrictions to devalue buildings that they vacate and then point to later on as support for lowering their assessments.

Martin Marshall, president of the International Association of Assessing Officers, testifies on the Dark Stores issue.

As the time for the hearing started to run short, the committee heard from the Michigan Retailers Association (MRA) and their tax attorneys from Honigman Miller explain how they believe that no law change is needed. Through materials MRA has been providing legislators, they state that the problem is really about retailers being over-assessed by local governments as those local governments attempt to make up for lost revenue sharing and increased costs from “Cadillac” retiree healthcare plans. The Retailers assert that “Local governments are now encouraging assessors to overstep their boundaries and assess business property at a higher rate in order to pay for their government operations and benefits without harming communities.”

View the Dark Stores Coalition Letter 11-4-15 (003)

MML, MAC, MTA and numerous other organizations and local officials were not able to testify before the committee hearing ended, but the chair recognized the need to continue the discussion and is planning an additional hearing in early December where we will get a chance to address the committee and advocate for a legislative fix. The League coordinated with more than a dozen other organizations to submit a joint letter to the committee asking that they engage in enacting a solution. Along with organizing this coalition, the League is pursuing an aggressive public relations campaign to bring attention to this important issue through radio, television and print media. We urge your assistance with this effort by contacting your Senator and Representative to explain to them the importance of addressing these dark store appeals and restoring a fair and proper valuation system.

Chris Hackbarth is the League’s director of state affairs. He can be reached at 517-908-0304and chackbarth@mml.org.

State Representative John Kivela, D-Marquette, and municipal officials testify Nov. 4 before the House Tax Policy Committee on the Dark Stores issue.

Update: Listen to a WJR radio show interview on this Dark Stores topic between the League’s Chris Hackbarth and WJR’s Frank Beckman. Be sure to listen to the subsequent interview between Beckman and State Rep. Jeff Farrington, R-Utica. (You’ll have to scroll down the page a bit and look under November 5). 

The House Tax Policy committee met Wednesday, Nov. 4, 2015, to begin hearing testimony on the big box retail/dark store tax appeal issue.  The committee hearing was designed to provide an overview of the issue for the committee members, allowing assessing experts and local government officials to explain the issue and the impact of these appeals all around the state.  The committee room was filled to capacity, with many individuals forced to stand throughout the hearing.

Experts from the Michigan Assessors Association and the International Association of Assessing Officers described the process and analysis that goes into valuing property. They were followed by officials from Marquette and Chippewa County who testified about the impact that recent Michigan Tax Tribunal appeal decisions have had on their communities and the services they provide.  The committee also heard about the manipulation of property values that big box retailers are perpetrating through the placement of negative use deed restrictions to devalue buildings that they vacate and then point to later on as support for lowering their assessments.

Martin Marshall, president of the International Association of Assessing Officers, testifies on the Dark Stores issue.

As the time for the hearing started to run short, the committee heard from the Michigan Retailers Association (MRA) and their tax attorneys from Honigman Miller explain how they believe that no law change is needed. Through materials MRA has been providing legislators, they state that the problem is really about retailers being over-assessed by local governments as those local governments attempt to make up for lost revenue sharing and increased costs from “Cadillac” retiree healthcare plans. The Retailers assert that “Local governments are now encouraging assessors to overstep their boundaries and assess business property at a higher rate in order to pay for their government operations and benefits without harming communities.”

View the Dark Stores Coalition Letter 11-4-15 (003)

MML, MAC, MTA and numerous other organizations and local officials were not able to testify before the committee hearing ended, but the chair recognized the need to continue the discussion and is planning an additional hearing in early December where we will get a chance to address the committee and advocate for a legislative fix. The League coordinated with more than a dozen other organizations to submit a joint letter to the committee asking that they engage in enacting a solution. Along with organizing this coalition, the League is pursuing an aggressive public relations campaign to bring attention to this important issue through radio, television and print media. We urge your assistance with this effort by contacting your Senator and Representative to explain to them the importance of addressing these dark store appeals and restoring a fair and proper valuation system.

Chris Hackbarth is the League’s director of state affairs. He can be reached at 517-908-0304and chackbarth@mml.org.

Governor Snyder today unveiled his plans for handling the current year budget shortfall and the state’s 2016 fiscal year (FY16) budget.  Recognizing the difficulty that the State is experiencing given the current revenue forecasts, the Michigan Municipal League appreciates that funding for local governments was not targeted for additional reductions, but does note that there were other areas of the budget that received additional funding or where investment in new programs were proposed.

The announced plan maintains statutory revenue sharing at currently budgeted levels throughout the remainder of this fiscal year.  Constitutional payments, which automatically rise or fall based on sales tax receipts and only go to cities, villages and townships, are estimated to rise by 3% to $788 million for FY16. This growth represents a $23.8 million increase in the coming year. In addition, the Governor’s proposal continues the current year statutory revenue sharing scheme for cities, villages and townships into FY16 with a recommended $243 million.

The League continues to maintain that the state’s system of funding support for municipalities is broken and in need of reform and this budget proposal does not address that issue. However, considering the state predicts having $532.1 million in less revenue due to cashed-in business tax credits the League is encouraged that statutory revenue sharing remains whole and constitutional revenue sharing continues to increase.

For specific details on the budget proposal, please visit www.michigan.gov/budget. View the League media statement on the budget.

Chris Hackbarth is the League’s director of state affairs. He can be reached at 517-908-0304 and chackbarth@mml.org