Treasury Posts PPT Reimbursement Calculators

Posted on December 13, 2016 by Dene Westbrook

Following the recent distribution of Personal Property Tax reimbursement payments to municipalities, the Local Community Stabilization Authority sent the letter linked below to the League explaining the basis of these payments and providing a link to the Michigan Department of Treasury’s web page where Treasury has now provided access to reimbursement calculators to help municipalities understand the basis for these payments. treasury-lcsa-distrubution-letter

For communities with questions about last month’s payment, please review these calculators for additional detail:

Personal Property Tax Reimbursements

Beginning for calendar year 2016, the Local Community Stabilization Authority (LCSA) Act, 2014 Public Act 86, (MCL 123.1341 to 123.1362) requires personal property tax reimbursement for all operating and debt millages.

Personal Property Tax 2016 Reimbursement Presentation

Other Municipalities

Tax Increment Finance Authorities

Reimbursement Priority

The Local Community Stabilization Authority shall distribute reimbursements in the following order of priority:

  1. 100% reimbursement for:
    1. Local school district and intermediate school district (ISD) school debt loss in the current year and local school district sinking funding millage and public recreation and playground millage;
    2. ISD operating millage;
    3. School operating loss not reimbursed by the school aid fund;
    4. Millages used to fund essential services (police, fire, ambulance, and jails);
    5. Decline in the tax increment finance (TIF) plan captured value of commercial and industrial personal property; and
    6. 2015 small taxpayer exemption loss.
  2. Reimbursement for other millages are prorated and may be less than or more than 100%, depending on total calculated losses compared to available Local Community Stabilization Share (LCSS) revenue. The LCSS revenue is derived from the State Use Tax.

Chris Hackbarth is the League’s director of state affairs. He can be reached at 517-908-0304and [email protected].

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