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Senate OKs small businesses PPT expansion, local reimbursement

LANSING, Mich. — The Michigan Senate on Thursday approved Sen. Michael D. MacDonald’s legislation as part of a package to implement expanded personal property tax (PPT) relief for small businesses and reimburse local governments for lost revenue.

“This expanded personal property tax relief will support more jobs and economic growth while also supporting important local services,” said MacDonald, R-Macomb Township. “With this balanced plan, we can encourage existing Michigan small businesses to grow and invest in our communities and make sure local public safety is protected.”

In December 2021, Michigan enacted legislation to increase the number of businesses that could qualify for the small taxpayer PPT exemption by increasing the exemption amount from $80,000 to $180,000. However, the legislation did not include a mechanism and process to administer the exemption.

Senate Bills 1060-1062 would create a process to allow small businesses to use a PPT exemption when the total true cash value of industrial and commercial property is between $80,000 and $180,000 and create a mechanism to refund local governments for the expanded PPT exemption.

MacDonald’s bill, SB 1062, would set a deadline by which appropriated funds are transferred to the Local Government Reimbursement Fund. The funds would then to distributed to local governments for exemptions granted the previous year.

The bills are supported by the Small Business Association of Michigan, National Federation of Independent Businesses, Michigan Manufacturers Association, Michigan Municipal League, Michigan Association of Counties and Michigan Townships Association.

SBs 1060-1062 now head to the House of Representatives for consideration.