Michigan Senate Bill SB0331

Michigan 2023-2024 Regular Session

• Introduced: 5/11/23
• Refer: 5/11/23
• Report Pass: 9/21/23
• Refer: 9/21/23
• Report Pass: 9/26/23
• Engrossed: 9/27/23
• Refer: 9/27/23
• Report Pass: 10/11/23
• Enrolled: 10/18/23
• Chaptered: 10/25/23
• Passed: 10/25/23

Caption

Property tax: exemptions; small business property tax exemption; modify application process. Amends secs. 9o, 19 & 30 of 1893 PA 206 (MCL 211.9o et seq.). TIE BAR WITH: HB 4553'23, HB 4554'23

Impact

The impact of SB0331 on state laws includes the modification of sections of existing legislation regarding property tax exemptions. It specifies the processes that assessors must follow in cases where claims for tax exemption are denied, and details the appeal mechanisms through the Michigan tax tribunal. This bill ensures that small businesses remain a focus in property tax considerations, which may lead to a decrease in their overall tax liabilities. Additionally, it introduces tighter regulations around how local governments can implement or alter tax policies affecting small business properties.

Summary

Senate Bill 331, also known as SB0331, addresses amendments to property tax exemption laws specific to small businesses. The bill modifies the application process for property tax exemptions, allowing eligible owners to continue claiming tax exemptions on personal property. The amendments extend the provisions related to notifying tax claimants about their rights and streamline the existing requirements set forth by the Michigan tax commission. This legislation is part of a broader effort to alleviate fiscal burdens on small businesses by simplifying tax processes and ensuring they can benefit from available exemptions effectively.

Sentiment

General sentiment surrounding SB0331 appears largely positive among small business advocates and legislators focused on economic development. Proponents describe it as a vital step towards supporting local economies by easing the tax obligations of small businesses. Conversely, some concerns exist regarding how these exemptions could affect local revenue, as municipalities might face challenges in maintaining budgets if significant exemptions are claimed. Nonetheless, the overall discourse indicates a recognition of the need for reform in property tax handling for small businesses.

Contention

Notable points of contention involve the balance between local government revenue needs and the potential relief afforded to small businesses via tax exemptions. Critics of the bill argue that while it helps small businesses, it may simultaneously deprive local governments of essential funding. Ensuring that the application processes remain transparent and do not inadvertently create barriers to those needing help is essential. The bill's passage is contingent upon the enactment of related legislation (House Bills 4553 and 4554), which adds a layer of complexity to its immediate efficacy.