Reporter Tim Skubick interviews Dearborn Mayor Jack O’Reilly about the effort to reform Michigan’s personal property tax

In just over two weeks voters will decide the fate of Proposal 1 that, if approved, would complete the reform effort to Michigan’s personal property tax.

Many Michigan communities are getting questions from their residents about Proposal 1 that appears on the Aug. 5, 2014, statewide primary ballot. It is the only statewide ballot question going before voters in August. The Michigan Municipal League is supporting Proposal 1 and encouraging our members to pass resolutions in support (view the communities that have passed the resolutions here).

Although many communities have passed resolutions in support others are more interested in providing information to their residents that takes a neutral position. Below is an example of an information-based statement that Michigan communities can share with their residents. (A special thanks goes out to Farmington Hills City Manager Steve Brock, a member of the League Board of Trustees, for putting this together for his community – we’ve broadened his statement a bit to make it applicable to any community.)

Facts of Proposal 1 Aug. 5, 2014, ballot question (to make it more applicable to your community fill in the portions in italics:

• It is NOT a tax increase for any individual
• It eliminates the current Personal Property Tax liability for businesses that own equipment, machines and furnishings
• It replaces 100 percent of this revenue ($X.X million for YOUR COMMUNITY’s NAME) with expiring state tax credits, a small tax on certain manufacturing concerns and part of the use tax paid by out-of-state suppliers
• There is no formally organized opposition to this proposal
• So far, all of the media outlets/sources that have made endorsements on this ballot question have supported the passage of Proposal 1
• The Michigan Municipal League, the Michigan Townships Association and Michigan Association of Counties (as well as dozens of other organizations and groups), have all supported the proposal. View complete list of supporters here.
• f you have any questions about this proposal, please contact me at (YOUR CONTACT INFORMATION).
• VOTE on the August 5 Primary Ballot.

Here are some links to additional information about Proposal 1:

1. Review magazine article by the League’s Samantha Harkins detailing the history of the personal property tax reform effort. Click here and go to page 18.

2. Michigan Municipal League One-Pager Plus fact sheet about the 2014 personal property tax reform package.

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

The Department of Treasury has released a personal property tax reimbursement spreadsheet to help members calculate their reimbursement amounts under the legislation the Governor signed in March. You can view the spreadsheet and determine your community’s reimbursement amount here: ppt reimbursement worksheet

Samantha Harkins is the Director of State Affairs for the League handling municipal finance issues.  She can be reached at sharkins@mml.org or 517-908-0306

The first piece of the personal property tax reimbursement package is upon us. It involves reimbursement of TIF plans for small parcel exemption losses.

There are two forms created by Treasury: Form 5176 –Non-Brownfield Authorities and Form 5176BR –Brownfield Authorities . These forms are also available on Treasury’s website: Local Government Officials Forms. One form is for brownfield authorities, and the other form is for all other authorities—DDAs, LDFAs, CIAs, etc.  Small taxpayer exemption loss (as that term is defined here in subsection ‘y’) will be reimbursed to the extent they actually cause revenue loss. If an authority has “negative capture” overall and would not have any tax increment revenue regardless of the small parcel exemption loss, there is no reimbursement. To that end, estimated 2014 tax increment revenue for all property by class is one step in the form. Since brownfield authorities cannot have “negative capture” they do not have to complete that step and it does not appear on the brownfield form.

The instruction pages give step-by-step detail of what data are needed to accurately complete the form. Some is provided via links in the forms, and some must be provided by the authorities.

The process will certainly raise questions from many applicants as they complete it for the first time. In recognition of that, and the delay in the availability of the forms, Treasury is exercising its statutory discretion to extend the June 15 due date. The due date is August 29, 2014.

Should you have any questions while filling this out, please contact Jim Mills in Treasury (Manager, Accounting and Auditing Section, Local Audit and Finance Division) at millsj@michigan.gov or 517-335-4669.

Nikki Brown is as a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305.

Dive-in and experience the real Marquette on one of six exciting mobile workshops we have planned for the afternoon of Oct. 16. Each workshop will get you out in the community to explore a different aspect of this unique 21^st century city.

Jump on the Marquette Waterfront or Trail Towns buses if developing some of your community’s natural assets piques your interest. Learn how Marquette has transformed its waterfront from an industrial harbor to a popular tourist destination. Or hike along the beautiful Noquemanon Trails Network and learn about the impressive economic results it has created for the private sector.

For history buffs, we have a couple options. Stretch your legs on a bike ride along the Iron Ore Heritage Trail that connects communities and people to the region’s historic sites. Or delve into the Upper Peninsula’s mining history with a tour of the Iron Industry Museum and Cliff’s Natural Resources.

To get a taste of Marquette’s city life, grab a seat on the buses headed to the area’s microbreweries or downtown’s historic main street. You’ll get to see the microbrewery operations up close and learn how another Michigan brewery used crowdfunding to support their business. Or take a walking tour of downtown’s Baraga Avenue and hear about the exciting PlacePlans project designed to breathe new life into this important street.

Get the details and sign up now before your favorite mobile workshop fills up!

The Michigan Legislature is out of session until July 16 at the earliest.  They are in district campaigning so it is a perfect time for you to set up meetings with them in your own communities.

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305.

This event provides an opportunity to discuss the geosynthetic reinforced soil integrated bridge system (GRS-IBS) and showcase a GRS-IBS project in Ionia County. GRS-IBS is an engineered fill of closely spaced, alternating layers of compacted granular fill material and geosynthetic reinforcement. It’s a fast, cost effective method of bridge support that blends the roadway into the superstructure.

There is no cost to attend this showcase. Morning refreshments and lunch will be
provided. For more information please click on the following link. 2014GRS_IBS_Showcase

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303

As soon as the last person headed home from the League’s 2013 Convention in Detroit, our heads began spinning with new ideas for our 2014 Convention.  Mark your calendars for Oct. 15-17 and plan to join your fellow municipal officials in Marquette, a northern Michigan gem nestled on the sparkling shore of Lake Superior. We’ll fill you in on lots of things you may not know about this Upper Peninsula community – from its internationally-acclaimed Northern Michigan University to its thriving downtown and spectacular recreational opportunities.

To sharpen your skills and knowledge base, we have planned sessions on a wide variety of topics. You’ll have an opportunity to learn everything from crowdfunding to boomer turnover to placemaking like a developer. You’ll also have a chance to get out in the fresh Upper Peninsula air and see what makes Marquette unique on one of several mobile workshops.

So get ready to grab onto some new ideas that you can apply in your own community. Registration starts June 23!

#mmlconv

As soon as the last person headed home from the League’s 2013 Convention in Detroit, our heads began spinning with new ideas for our 2014 Convention.  Mark your calendars for Oct. 15-17 and plan to join your fellow municipal officials in Marquette, a northern Michigan gem nestled on the sparkling shore of Lake Superior. We’ll fill you in on lots of things you may not know about this Upper Peninsula community – from its internationally-acclaimed Northern Michigan University to its thriving downtown and spectacular recreational opportunities.

To sharpen your skills and knowledge base, we have planned sessions on a wide variety of topics. You’ll have an opportunity to learn everything from crowdfunding to boomer turnover to placemaking like a developer. You’ll also have a chance to get out in the fresh Upper Peninsula air and see what makes Marquette unique on one of several mobile workshops.

So get ready to grab onto some new ideas that you can apply in your own community. Registration starts June 23!

#mmlconv

As soon as the last person headed home from the League’s 2013 Convention in Detroit, our heads began spinning with new ideas for our 2014 Convention.  Mark your calendars for Oct. 15-17 and plan to join your fellow municipal officials in Marquette, a northern Michigan gem nestled on the sparkling shore of Lake Superior. We’ll fill you in on lots of things you may not know about this Upper Peninsula community – from its internationally-acclaimed Northern Michigan University to its thriving downtown and spectacular recreational opportunities.

To sharpen your skills and knowledge base, we have planned sessions on a wide variety of topics. You’ll have an opportunity to learn everything from crowdfunding to boomer turnover to placemaking like a developer. You’ll also have a chance to get out in the fresh Upper Peninsula air and see what makes Marquette unique on one of several mobile workshops.

So get ready to grab onto some new ideas that you can apply in your own community. Registration starts June 23!

#mmlconv