LANSING, Mich. — The Michigan Senate on Thursday approved Sen. Mark Huizenga’s legislation to implement expanded personal property tax (PPT) relief for small businesses and help reimburse local governments for lost revenue.
“This reform will provide more relief from personal property taxes, which punish job providers for investing in their Michigan business,” said Huizenga, R-Walker. “Our small businesses — from new manufacturers to longtime family restaurants — are the heartbeat of our economy. This plan will support their continued growth in our state while also protecting the ability of our local governments to provide vital services, like public safety.”
In December 2021, Michigan enacted legislation to increase the number of businesses that could qualify for the small taxpayer PPT exemption by increasing the exemption amount from $80,000 to $180,000. However, the legislation did not include a mechanism and process to administer the exemption.
Huizenga’s bill, Senate Bill 1060, would create a filing process to allow small businesses to use a PPT exemption when the total true cash value of industrial and commercial property is between $80,000 and $180,000 and set a deadline for local governments to provide exemption information to the Michigan Department of Treasury for reimbursement.
SB 1061 would create the Local Government Reimbursement Fund and set a deadline by which the state must reimburse local governments for exemptions granted the previous year. SB 1062 establishes a deadline by which appropriated funds must be transferred to the reimbursement fund.
The bills are supported by the Small Business Association of Michigan, National Federation of Independent Businesses, Michigan Manufacturers Association, Michigan Municipal League, Michigan Association of Counties and Michigan Townships Association.
SBs 1060-1062 now head to the House of Representatives for consideration.