Personal Property Tax (PPT) Exemption extended until 5/31/16
Legislation recently signed into law by Governor Snyder provides a one-time extension to manufacturers who may have missed the February deadline to file for Personal Property Tax (PPT) exemptions. The deadline has been extended to Tuesday, May 31st, 2016, to file for the 2016 PPT exemption.
Following the initial February deadline, many manufacturers were still unaware that this industry-wide tax break was available. Additionally, many businesses who had filed applications were denied as being incomplete for very minor reasons.
In order to file or re-file before 5/31/16 you need to:
It is important to note that an exemption affidavit must be received by your local assessor no later than 5/31/16. Postmarks are not accepted as meeting the deadline.
1.25.16 - Detroit Storm Water Drainoff Policy Decision May Impact Commercial Properties
This information is primarily intended for Commercial Realtor® members. Many of you may be aware that commercial property owners in Detroit are assumed to be billed for their share of the cost of operating the Storm Water Drainoff System (SWDS), a system put in place pursuant to a Consent Judgement entered into with the Environmental Protection Agency to address pollution overflow and runoff into the Detroit and Rouge Rivers. The cost of operating this system requires that the City of Detroit take in approximately $106,000,000 in fees each year. Given this substantial sum, each commercial property was intended to pay based on its individual usage to account for the management of the SWDS.
Fast forward to 2015, in an effort to make sure each using property was being assessed properly, aerial mapping and research was undertaken to identify the universe of subject properties within the SWDS. It was determined that there was a marked disparity between the total number of properties using the system and the actual number of properties being assessed to pay for the system. What does this mean for those paying and those not paying? The answer to this question is currently being debated by City of Detroit officials.
We do know that by July 1, 2016, all non-residential properties of .25 acres of more will be assessed. While a policy decision by the City of Detroit has not been formalized, one significant concern for Commercial Realtors® is the monetary impact that could be imposed upon those properties that have been using the system but have never been billed. Since these fees can reach $745.52 per acre per month, the treatment of the newly identified properties remains a huge concern for current owners and marketability.
The City of Detroit now must determine whether to assess the newly identified properties prospectively or whether it will have a charge-back against the previously unassessed properties. That charge-back, if implemented, would probably be for no more than a three-year period. If a charge-back is implemented, the current owner of the previously unassessed properties could receive a substantial bill for the use attributable to their property. Further, marketing of these properties raises the issue of how to disclose information regarding a potential charge-back. While the issue is arguably a matter of public record and commercial transactions generally involve fairly sophisticated parties, a Commercial Realtor® may well save a client (buying, selling, or leasing) a significant amount of trouble by discussing how to address potential impacts from the SWDS on a transaction.
Michigan Realtors® will update its membership as soon as the City of Detroit makes a concrete determination.
7.9.15 - NAR 1031 Real Estate Study and Survey Results
Over the past several months, NAR has been an active participant in several studies and surveys to examine the scope and use of 1031 Exchanges by membership and other real estate professionals. Specifically, the studies were aimed at offering a prospectus of what the economic effect will be if they are eliminated from the tax code. July marks the official “roll-out” of the Ling-Petrova study, which analyzes 1031s in the real estate industry and their effect on the economy.
In addition to the Ling-Petrova study results, you may view the results of NAR's 1031 Exchange Survey. NAR has culled together some compelling anecdotes from members to highlight the innovative and important ways that our industry utilizes 1031s.
Both the Ling-Petrova study and the NAR survey results are available for download below:
NAR Survey Results
7.7.15 - Commercial Member Profile
The 2015 NATIONAL ASSOCIATION OF REALTORS® Commercial Member Profile details the business and demographic characteristics of NAR commercial members.
1.9.15 - Main Street Fairness legislation awaiting Governor’s Signature
Legislation leveling the playing field between local businesses and internet retailers passed in the final hours of the 2014 legislative year, and is now on Governor Snyder’s desk awaiting his signature.
Senate Bills 658 and 659 of 2014, sponsored by Senator Jim Ananich (D-Flint) require out-of-state, “remote sellers” who sell to Michigan consumers to collect the state's sales tax. The legislation takes effect on October 1, 2015. This bipartisan legislative package protects job makers across the state by closing a sales tax loophole that was putting Michigan “brick and mortar” businesses at risk.
When consumers buy a product online, Michigan law says they must pay the same sales tax they would if they were to buy the product from a store in person. Under Michigan’s current sales tax collection system, out-of-state, online-only retailers are exploiting the massive legal loophole, allowing them to forgo collecting sales tax at the point of sale. Online-only retailers use this loophole to attract shoppers away from brick-and-mortar businesses by using deceptively lower prices, since Michigan retailers must add — and collect — the 6-percent sales tax to the customer’s bill. As a result, Main Street businesses are put at a significant competitive disadvantage that puts Michigan’s business community at risk.
The Michigan Main Street Fairness Act:
• Moves online-only retailers under the same sales tax collection laws under which Michigan brick-and-mortar businesses operate; and
• Expands the definition of “nexus” or “physical presence” to include retailers who conduct business through affiliate businesses in Michigan or own subsidiary companies in an attempt to avoid paying sales tax.
11.19.14 - Urge Congress to Extend TRIA - Terrorism Risk Insurance Act of 2001
Following the terrorist attacks of September 11, 2001, insurers backed out of the terrorism insurance market place prompting Congress to create a federal reinsurance risk-sharing program the "Terrorism Risk Insurance Act of 2002" (TRIA), which also mandated that insurers make terrorism coverage available along with its property and casualty lines. TRIA, will expire at the end of 2014 unless Congress reauthorizes it once again. Because of the importance of terrorism insurance coverage to commercial real estate, NAR supports the continued availability and affordability of coverage made possible by the federal backstop program of the “Terrorism Risk Insurance Act of 2002” and its extensions.