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 [email protected] 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 [email protected] or 517-908-0305.