Many Municipalities Do Not Know Libraries Should Receive PPT Reimbursements
Librarians and MLA were successful in getting libraries included in the legislation that ensured reimbursement for losses due to the Personal Property Tax (PPT) repeal. All types of millages are being reimbursed and libraries should expect to receive 100 percent of their losses.
Libraries do not need to apply for reimbursement for nondebt millage. However, local municipalities may not have the most up to date information indicating that library millages should be reimbursed. It is important that you contact your local taxing authority and ensure they know the library should be reimbursed.
Library reimbursements are calculated using the lowest millage rate levied between 2012 and 2015. If you do not receive an equalization report from your county, you can research your tax information to determine the amount of your reimbursement. The most recent information we have indicates that county, township and other millages levied 100 percent in December will be paid the following February. So you should look for a check in 2017. Other reimbursements should be made in September or October of 2016. District libraries will receive a check directly from the Local Community Stabilization Authority. All others will get a check from their taxing authority.
Instructions for finding how much your library receives in personal property taxes:
Locate the total taxable value and the millage rate for your library. This information is available from your county government. You determine your property tax income from multiplying the millage rate against the taxable value.
Within the taxable value are two taxes: real taxes and personal taxes. Real taxes are from property values and personal taxes come from businesses in your district. The businesses pay annual taxes on specific assets such as equipment, computers, etc. This is the personal property tax. You can call the county treasurer and ask for a breakdown of the real versus personal taxes in your total taxable value or you can go online to your county web site and go to the treasurer’s web page. Look for a listing of “recommended county taxable values for villages, libraries and authorities.” This will give you specific details about your taxable values including real and personal tax values.
When you have the total personal tax value for your district, multiply that times the lowest millage rate used between 2012 and 2015 and that should be your reimbursement amount.
Reimbursement for Debt Millage
If you have debt millage, you should have submitted Form 5220 to Claim Reimbursement for Small Taxpayer Exemption Loss for December 2015 Debt Millage and received your reimbursement in February 2016.
Click here for the state of Michigan’s webpage on PPT: http://www.michigan.gov/taxes/0,4676,7-238-43535_72736---,00.html