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Personal Property Tax Implementation Takes Center Stage

Posted on August 10, 2016 by chackbarth
PPT training in Marquette on Wednesday, Aug. 10, 2016.

PPT training in Marquette on Wednesday, Aug. 10, 2016.

Based upon the significant level of questions from municipalities across the state with this initial phase of implementation of the new personal property tax system, the League reached out to Treasury and we are coordinating with the Department to provide opportunities for municipalities to hear from Treasury’s personal property tax staff through a few regional “office hours” style meetings.

The first of these meetings was held in July in Muskegon with an second event held today in Marquette.  Dozens of communities in these regions with a significant industrial/manufacturing personal property tax base, were able to send management and finance staff to participate in these events and talk directly with Treasury staff to get answers to their questions as this new system is being implemented.

Treasury staff provided an overview presentation on the status of implementation of the new law (Personal Property Tax Update 2016 Reimbursement Slides JJune 28 2016), discussed the relevant timelines they are working with according to the new law, reviewed the forms that have been (and are being) developed, discussed the role of the Essential Services Assessment as part of the overall reimbursement process, provided answers to some of the most commonly asked questions (PPT.FAQs_-_LCSSR_Essential_Services_Distribution_Calculation_529232_7), and walked the meeting attendees through some various examples for calculating PPT loss and estimating reimbursement (all subject to change depending on the actual revenues available this fall that the reimbursements will be drawn from).

Acknowledging the questions the Department continues to receive on the new process, Treasury has stated that they will continue to accept Form 5448 from any community that wishes to submit their information through the end of August.

The League appreciates Treasury’s willingness to participate in these events and we will continue to work with the Department to offer additional opportunities for municipalities to meet in person and have their questions and concerns addressed.

Chris Hackbarth is the League’s director of state affairs. He can be reached at 517-908-0304and chackbarth@mml.org.

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