Personal Property Exemption Aid

Personal Property Tax Exemption Aid

The 2017-2019 state budget (2017 Act 59) exempted machinery, tools, and patterns, other than items already considered exempt manufacturing property under prior law, effective January 1, 2018.  The budget act also created a new state aid program designed to reimburse municipalities for the lost personal property tax revenue.  Personal property aid payments are made to municipalities in May of each year.  The payment amount is based on the amount of property taxes levied in 2017 and collected in 2018 on the personal property exempted by the state budget (i.e., machinery, tools, and patterns).

DOR has posted estimates of 2021 personal property aid payments here.

DOR sent a letter to Local Government Leaders in August 2020 explaining that the department will be making adjustments to personal property aid payments in 2021 to correct overpayments and underpayments that were made to some communities in 2019.  This means some communities will receive less than they have received in 2019 while others will receive more than they received in 2019. 

Read the letter here.