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LOCAL GOVERNMENTAL UNITS MUST ACT IMMEDIATELY TO RECOVER LOST TAX REVENUE

The Michigan Townships Association announced that Local Tax Capture Authorities Have Until JUNE 15 to Recover Lost Tax Revenue

Legislation that allows local tax capture authorities to receive compensation for revenues that were lost due to the exemption of certain personal property from taxation was signed into law on Thursday, creating Public Acts 154-157 of 2008. Last Fall, the Legislature exempted industrial personal property from both the 6 mill State Education Tax and the 18 mill school operating tax. They also exempted commercial personal property from 12 mills of the school sperating tax. Generally, this impacted school operating revenue. However, in certain situations, those revenues are captured for economic development programs such as Downtown Development Authorities (DDA), Tax Increment Finance Authorities (TIFA), Local Development Finance Authorities (LDFA) and Brownfield Redevelopment Authorities (BRA). The Department of Treasury has created an application form--4650 Request for State Reimbursement of Tax Increment Revenue Decreases--for local tax capture authorities to seek reimbursement for revenue loss caused by the change in the tax law.  DDAs, TIFAs, LDFAs and Brownfield Authorities which capture school taxes have until JUNE 15 to file the form seeking approval for compensation for this year’s revenue loss.  The new law requires pre-approval by the state before locals can be compensated. All applications must be filed online.  The form can be found at http://www.michigan.gov/treasury/0,1607,7-121-1751---,00.html.

Helpful links:
www.michigan.gov/treasury
www.michigantownships.org