2022 Personal Property Tax Reimbursement Correction Process

Posted on January 30, 2023 by John LaMacchia

The Michigan Department of Treasury has asked that we remind municipalities that, although not required, they can correct errors in the 2022 Personal Property Tax (PPT) reimbursements distributed in October 2022 and February 2023.

The Local Community Stabilization Authority (LCSA) Act provides municipalities an opportunity to review the PPT reimbursement calculations and data used in the calculations to ensure accurate PPT reimbursement distributions. To determine if an error has occurred in the PPT reimbursement calculations or data used, the municipality must review the applicable reports on Treasury’s Personal Property Tax Reimbursements website.

Links to the 2022 PPT reimbursement calculations and most common data used:

When NO Errors Are Identified:

If a municipality does not identify an error, the municipality does not need to file a form or take any further action to notify Treasury.

When Errors ARE Identified:

If a municipality does identify an error, the municipality will need to complete the appropriate correction form to notify Treasury of the error(s). In addition to the correction form(s), municipalities must provide substantiating documentation to support a correction. The correction forms (along with the associated deadlines) are available on Treasury’s Forms for Calculation of PPT Reimbursements website.

Form 5651 – Correction of 2022 Personal Property Taxable Values Used for the 2022 Personal Property Tax Reimbursement Calculations
- Municipality submission deadline to County Equalization Director: February 28, 2023
- County Equalization Director submission deadline to Treasury: March 31, 2023
- Note: Per the LCSA Act, only the 2022 personal property taxable values may be corrected. The 2022 personal property taxable values must be the taxable value on May 10, 2022.
Form 5654 – Correction of School Millage Rates or Other Errors for the 2022 Personal Property Tax Reimbursement Calculations

- Municipality submission deadline to Treasury: March 31, 2023
- Note: Only debt and hold harmless millage rates for school districts and intermediate school districts may be corrected at this time. The LCSA Act does not allow any other millage rate errors to be corrected after August 1, 2022.

Form 5658 – Modification of the 2013, 2014, and 2015 Personal Property Taxable Values Used for the 2022 Personal Property Tax Reimbursement Calculations
- Municipality submission deadline to Treasury: March 31, 2023
- Note: Per the LCSA Act, the 2013, 2014, and 2015 personal property taxable values may only be modified because of a personal property reclassification or municipal boundary change.

The corrections reported on Form 5651, Form 5654, and Form 5658 will be used in the calculation of the May 2023 distribution of the 2022 PPT reimbursements.

Please direct any questions regarding the PPT reimbursement correction process to [email protected] or 517-335-7484.

John LaMacchia is the League’s director of state & federal affairs. He can be reached at [email protected] or 517-908-0303.

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