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Senate OKs MacDonald bill for a one-time fix for businesses that missed PPT exemption deadline due to COVID-19

LANSING, Mich. — The Michigan Senate on Wednesday approved Sen. Michael D. MacDonald’s legislation to provide a one-time filing window for 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.

“Several Michigan small businesses were unable to file for the personal property tax exemption before the deadline last year — with at least 15 of these affected businesses located in Sterling Heights,” said MacDonald, R-Macomb Township. “While the law is clear, the unprecedented pandemic should be considered — especially when the consequences for missing the deadline can be devastating.

“My bill would create a one-time late filing window for the 2021 exemption, allowing these businesses to get the exemption and keep their doors open. It also ensures local municipalities are held harmless.”

Senate Bill 807 would create a 30-day window allowing property owners, who missed filing in a timely manner for the 2021 Eligible Manufacturing Personal Property exemption due to COVID-19, to file for the EMPP exemption.

Within 30 days of SB 807 taking effect, a property owner wishing to receive the exemption would need to apply to the State Tax Commission for the EMPP exemption with the following provisions:
• If approved and the 2021 property taxes were paid, a refund of the amount of the exemption would be paid to the property owner by the Late-Qualifying Eligible Manufacturing Personal Property Tax Fund — which is created by SB 807 within the state treasury department.
• If approved and the 2021 property taxes remain unpaid, the new fund will pay the local tax collecting authority the amount of the EMPP exemption had the property owner filed a timely exemption.
• If denied, the property owner and local tax collecting authority would receive written notice of the denial, which may be appealed to the tax tribunal within 35 days.

The bill now heads to the House of Representatives for consideration.