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MacDonald bills offer businesses a one-time fix for missed PPT exemption deadline due to COVID-19

LANSING, Mich. — Sen. Michael D. MacDonald on Wednesday outlined to the Senate Finance Committee his legislation to provide a one-time extension of the state’s personal property tax exemption for businesses that were unable to file the necessary paperwork in 2021 due to the COVID-19 pandemic.

“In the wake of the seismic changes taking place, a number of Michigan businesses were unable to file for the personal property tax exemption in time last year — with at least 15 of these affected businesses located in Sterling Heights,” said MacDonald, R-Macomb Township. “The law is clear, but the situation under the pandemic is unprecedented — and the consequences for missing the deadline can be devastating. In two cases, local businesses owe $1 million more in taxes than if they would have received the exemption.

“My bill would create a one-time extension for the 2021 calendar year, allowing these businesses to get the exemption and keep their doors open.”

Senate Bill 806 would create a one-time extended filing of the 2021 combined document for the Eligible Manufacturing Personal Property exemption for calendar year 2021 if it was not filed by March 30, 2021.

SB 805 would require the Michigan Department of Treasury this year to recalculate distribution of payments of Local Community Stabilization Fund revenue made to locals in 2021. Excess funds owed to municipalities will be handled in a manner that ensures each municipality will receive the same amount it would have if the combined form had been filed in a timely manner. Excess funds overpaid to municipalities in 2021, would be remitted to Department of Treasury or 2022 payments would be readjusted to account for the overpayment.

SB 807 would add a new section regarding eligibility for the EMPP exemption by making one-time provisions requiring the Department of Treasury to electronically provide a calculation of the exemption assessment within 90 days to qualified taxpayers, establish reasonable procedures and deadlines for the certification of the statement and payment of the assessment, and give eligible taxpayers at least 28 days to comply.