The Local Community Stabilization Authority met today (11/18/16) to authorize the disbursement of $374 million that was dictated by the new personal property tax reform system approved by the voters in 2014. Nearly 500 cities and villages that experienced a loss in 2016 from eligible exempt personal property (including the first phase-out of eligible manufacturing personal property claimed in the first half of 2016) should expect to receive a check from the LCSA over the course of the coming week. Approximately $140 million of the total is being distributed directly to cities and villages that is expected to cover 100% or more of their essential service, small taxpayer exemption, tax increment finance, and other losses resulting from the new law.
The reimbursement date of November 20th this year is one month later than it will be in coming years, due to the filing deadline extension that legislators approved earlier this year to allow manufacturers more time to claim the exemption on their equipment. Going forward this annual reimbursement is expected to occur in October. For communities with December tax levies, they should expect to receive a reimbursement check in February.
Treasury is expected to provide additional clarification on reimbursement calculation details sometime next week.
Chris Hackbarth is the League’s director of state affairs. He can be reached at 517-908-0304and [email protected].