Staff from Treasury this afternoon provided the following information and newly developed Form 5448 to calculate essential services as part of the implementation of the new Personal Property Tax reimbursement process. The new Form 5448 can be viewed here – PPT Form 5448 FYE 12 % of Operating Millage Used to Fund Essential Services, or at the link to Treasury’s website below. Responses are requested by July 15, 2016.
The Local Community Stabilization Authority Act (LCSA Act), 2014 Public Act 86, requires personal property tax distributions for all operating and debt millages. The LCSA Act provides that the personal property distribution for millage(s) used entirely or in part to fund essential services (i.e. police, fire, ambulance, or jails) is calculated separately from millage used for other purposes.
To calculate the personal property distribution for essential services, the LCSA Act requires the Department of Treasury (Treasury) to calculate each municipality’s percentage of general operating millage used to fund the cost of essential services in the municipality’s fiscal year ending in 2012. However, the law allows the municipality to perform the calculation by including the calculation in its comprehensive annual financial report for the municipality’s fiscal year ending in either 2014 or 2015, or by reporting the calculation in a manner prescribed by Treasury. Therefore, Treasury has developed Form 5448 – FYE 2012 Percentage of General Operating Millage Used to Fund Essential Services (see attached) to assist municipalities with reporting the calculation. The calculated percentage will be used to calculate each municipality’s Local Community Stabilization Share Revenue Essential Services Distribution in 2016 and for all future years.
Treasury is requesting that municipalities complete and return the Form 5448 by July 15, 2016. The completed form can be submitted by email to [email protected], by fax to 517-335-3298, or by mail to:
Michigan Department of Treasury
Office of Revenue and Tax Analysis
PO Box 30722
Lansing, MI 48909
For those municipalities that do not submit a Form 5448, Treasury will perform the calculation based on the municipality’s audited financial report or F65 report for the fiscal year ending in 2012.
For detail regarding the calculation of the Local Community Stabilization Share Revenue Essential Services Distribution, visit Treasury’s website at http://www.michigan.gov/taxes/0,4676,7-238-43535_72736-358296–,00.html.
Please direct any questions regarding the completion of this form to [email protected] or 517-373-2697.
Office of Revenue and Tax Analysis – Michigan Department of Treasury
Chris Hackbarth is the League’s director of state affairs. He can be reached at 517-908-0304and [email protected].