LANSING, Mich. May 15, 2023 — State Reps. Denise Mentzer (D-Mt. Clemens) and John Fitzgerald (D-Wyoming), alongside state Sen. Kevin Hertel (D-St. Clair Shores) introduced a bill package — House Bills 4553 and 4554, and Senate Bill 331 — to amend personal property tax law and help reimburse local governments for lost revenue.
“This bill package is beneficial for both municipalities and small businesses. The bill will provide reimbursements for local towns, cities and communities across the state. Public safety is a priority of mine — police, fire protection and other local services will have an opportunity to receive investments that allow them to continue their work for the people effectively and successfully,” Mentzer said. “Most importantly, this bill promotes community protection. This bill is exactly what our communities need — it helps reimburse local governments for lost revenue and grants personal property tax relief for small businesses.”
HB 4553 amends the Michigan Trust Fund Act to create the Local Government Reimbursement Fund in the state treasury and to allow the department to disburse funds to compensate municipalities for revenue lost under the small business taxpayer personal property exemption. HB 4554 would amend the Use Tax Act to require $75 million in use tax revenue to be deposited into the Local Government Reimbursement Fund each fiscal year.
“These bills support mom-and-pop shops while also providing funds for our local governments to continue to keep our communities safe and secure,” Fitzgerald said. “I can’t help but think of the many businesses in my district and the great community we share — these bills will relieve the burden on some of the wonderful people of West Michigan. I’m grateful I could specifically support them and small businesses across the state.”
“These tax exemptions will help Michigan small businesses, but as legislators, it is our role to balance those benefits with the costs they bring to local units of government,” Hertel said. ”Municipalities are responsible for providing police, fire, sanitation, and road services, among other community needs, and it’s vital that they are made whole. This legislation strikes a much-needed balance between small businesses and communities across the state.”
Senate Bill 331 would require taxpayers possessing eligible personal property to annually file the statement of assessable personal property with the local assessor and file a statement prescribed by the Department of Treasury attesting to the value of industrial and commercial personal property that is owned, leased, or possessed by the taxpayer, among other changes.