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Wednesday, May 31, 2023
Intended Audience: Municipalities that receive Personal Property Tax (PPT) reimbursements from the Local Community Stabilization Authority.
The Michigan Department of Treasury (Treasury) reminds municipalities that, although not required, they can review and correct errors in Treasury’s calculation of each municipality’s millage rate eligible for the 2023 Personal Property Tax (PPT) reimbursement (MCL 123.1345(x)(ii)(B) and MCL 123.1353(5)).
The Local Community Stabilization Authority (LCSA) Act requires Treasury to make the eligible millage rate calculations available by May 1. The eligible millage rate calculations can be found on Treasury's 2023 PPT Reimbursements website under the “Millage Rate Comparison Reports” heading. These 2023 Millage Rate Comparison Reports are intended to be used by municipalities to verify the accuracy of the eligible millage rates to be used in their 2023 PPT reimbursement calculations.
How to Review the 2023 Millage Rate Comparison Reports:
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Verify Individual Millage Rate(s) Levied in 2022
- Municipalities should compare the individual millage rate(s) levied in 2022 on the 2023 Millage Rate Comparison Reports with the millage rates reported on their 2022 Form 614 – Tax Rate Request (L-4029).
- Each millage rate reported on the 2022 Form 614 should be listed on the 2023 Millage Rate Comparison Reports (excluding special assessments).
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Verify Calculated Millage Rate Used in the Computation
- The calculated millage rates to be used in the 2023 PPT reimbursement calculations should equal the lesser of the eligible millage cap and the 2022 millage rate.
- The Millage Rate Calculation tab of the Excel workbook provides information about how each eligible millage rate is calculated.
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NOTE: Calculated eligible millage rates may be prorated and thus may not reflect the actual millage rates levied by the municipality.
When NO Millage Rate Errors Are Identified:
If a municipality does not identify an error in the 2023 Millage Rate Comparison Reports, 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 in the 2023 Millage Rate Comparison Reports, the municipality will need to complete the Form 5613 – Millage Rate Correction for the 2023 Personal Property Tax Reimbursement Calculations to notify Treasury of the error(s). In addition to the correction form, municipalities must provide substantiating documentation to support the millage correction.
The reporting forms related to the 2023 Millage Rate Comparison Reports (along with the associated deadlines) are available on Treasury's Forms for Calculation of PPT Reimbursements website.
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Form 5608 – Portion of 2022 Essential Services Millage Rate Dedicated for the Cost of Essential Services
- Optional form to be used by counties, cities, villages, townships, and local authorities that levy an extra-voted millage rate that partially funds the cost of essential services (for example a Fire/Cemetery millage).
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NOTE: For extra-voted millage rates with a name that implies the millage was partially dedicated for the cost of essential services, Treasury has identified the millage type as “PARTIAL ESSENTIAL SERVICE” on the 2023 Millage Rate Comparison Reports.
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DUE DATE: August 1, 2023
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Form 5613 – Millage Rate Correction for the 2023 Personal Property Tax Reimbursement Calculations
- Optional form to be used by municipalities that identify an error in the 2023 Millage Rate Comparison Reports.
- DUE DATE: August 1, 2023
The corrections reported on Form 5613 and the essential services percentage reported on Form 5608 will be used in the calculation of the 2023 PPT reimbursements.
Form 5613 and Form 5608 submissions will not be accepted after August 1, 2023.
Please direct any questions regarding the PPT reimbursement calculation or correction process to TreasORTAPPT@michigan.gov or 517-335-7484.
Additional information is available at www.michigan.gov/pptreimbursement
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