Inside 208

The Michigan Department of Treasury (Treasury) informs municipalities that the 2025 Small Business Taxpayer Exemption (SBTE) reimbursements were issued on May 28, 2026.

Background 

In Tax Year 2023, the SBTE was expanded to include taxpayers that own, lease, or possess eligible personal property with a combined true cash value equal to or greater than $80,000 but less than $180,000.

The Michigan Trust Fund Act, 2000 Public Act 489, MCL 152.253a, requires Treasury to calculate and distribute SBTE reimbursements to municipalities for personal property tax revenue lost due to this expanded exemption.

Where to Find Reports

To assist municipalities with understanding and reconciling their 2025 SBTE reimbursements, Treasury has made the following reports available on the 2025 SBTE Reimbursements website:

• Distribution by Payee: Lists the total reimbursement amount issued to each payee.
• Distribution by Millage: Provides a breakdown of the reimbursement by millage type and rate.
• Calculation by Millage: Details how each reimbursement was calculated, including the total taxable value of all SBTEs within the municipality, millage rate and applicable TIFA capture adjustments.
• SBTE Reimbursement TIFA Capture: Details how SBTE reimbursement amounts are captured and reimbursed to TIFAs via Form 6098.

How to Record SBTE Reimbursements

For counties, cities, villages, townships, libraries, local authorities, and tax increment finance authorities, record SBTE reimbursement revenue to:

• Revenue account 569, State Grants – Other

For local school districts and intermediate school districts, record SBTE reimbursement revenue to:

• Revenue major class code 321, suffix 0000

Timeline for SBTE Reimbursements

SBTE Reimbursements are issued annually in May, immediately following the tax year of the exemption. Municipalities will be reimbursed for 2026 SBTE claims in May 2027.

Questions?

• Visit Small Business Taxpayer Exemption (SBTE) Reimbursements
• Contact Treasury at:
  • Email: [email protected]
  • Phone: 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.