Property Tax Alert: Michigan

May 2004

The Michigan property tax exemption for new personal property owned or leased by an eligible business located in a local assessing district containing a distressed area has been expanded. Effective April 21, 2004, an "eligible distressed area" includes an area that contains an eligible business that makes capital investment of $100 million in a time period beginning three years prior to and two years following becoming an authorized business as provided under the Michigan Economic Growth Authority Act and agrees to maintain at least 1,500 jobs at a facility without permanent reduction in full-time employment except through attrition or retirement. However, the exemption awarded to a business as described above may be granted only as part of a package of incentives that addresses international competition and includes a negotiated labor contribution.

Please contact Rash & Associates for more information.