Michigan Property Tax
Michigan's 2008 average non-homestead property tax rate was 48.39 mills, or $48.39 per $1,000 of assessed property, with real and personal property subject to taxation at 50% of current market value. Industrial personal property is automatically exempt from 24 mills of school tax, and commercial personal property is automatically exempt from 12 mills of school tax.
Industrial & High-technology property tax exemption:
Public Act 198 of 1974 (P.A.198) provides property tax abatements to industrial processors, high-technology activity companies, research and development laboratories and large communication centers, which can reduce certain property taxes by up to 50%. A P.A. 198 abatement is negotiated at the local municipal level and is available for up to 12 years. Investment made within the negotiated time will be eligible for the abatement. Numerous P.A. 198 abatements have been granted throughout Lenawee County, Michigan, over the years to provide incentive and stimulus for industrial development and expansion.
New Warehousing, Distribution and logistic Facilities in Border Counties:
Public Act 138 provides up to a 50% reduction in property taxes for new warehouse, distribution, or logistic facilities that locate in a border county (Lenawee is a border county). To qualify for this incentive, at least 90% of the facility, excluding the surrounding green space, must be used for warehousing, distribution or logistic purposes and occupy a building or structure at least 100.000 square feet in size.
Obsolete Property Exemption
Public Act 146 of 2000 provides for a tax incentive to encourage the redevelopment of obsolete buildings into commercial or commercial housing. The tax incentive is designed to assist in the redevlopment of older buildings, in which a facility is contaminated, blighted or functionally obsolete. The taxable value on a facility is frozen for up to 12 years. By freezing the taxable value, a business can significantly improve a building without increasing the property taxes on the building.
Commercial Rehabilitation Act:
Public Act 210 of 2005 provides a property tax abatement for commercial real property that is 15 years or older. The primary purpose and use is the operation of a commercial business enterprise or multi-family residential use. The comercial rehabilitation tax freezes the taxable value of that building and only levies specific taxes on the new investments.
Property Tax Exemption for Special Tooling:
Michigan exempts special tooling from all property taxes. "Special Tooling" includes tools, dies, jigs, fixtures and patterns, which are used to manufacture another product without substantial modification to the device. Businesses may claim the special tooling exemption on their personal property tax statement filed with the local property tax assessor each year.
Contact Tim Robinson at 517-265-5141 or tim@lenaweenow.org for more information about these Property Tax Abatements.