Menu
Tax Notes logo

Michigan Extends Personal Property Tax Situsing

Posted on Jan. 3, 2022

Personal property that is in a different location in Michigan because of the COVID-19 pandemic will continue to be assessed in its "ordinary location."

Gov. Gretchen Whitmer (D) signed S.B. 698 on December 23. It extends through tax year 2022 a provision that sets at its ordinary location the assessment situs of personal property — including exempt personal property — that is located in an alternate in-state location because of the pandemic.

The bill, introduced by Senate Finance Committee Chair Jim Runestad (R), was passed by the House on a 102–0 vote December 9 after it was approved by the Senate 35 to 0 November 10.

S.B. 698 defines a property’s ordinary location as "the geographic area of a local tax collecting unit in this state where an item of personal property would have been located for its primary use."

According to a December 17 bill analysis, the General Property Tax Act generally requires tangible personal property in the state to be assessed in the local jurisdiction where it is located on tax day. However, the pandemic displaced property from its ordinary, centralized locations to various alternate locations within the state when businesses were required to allow their employees to work from home. S.B. 1203, enacted in December 2020, amended the act and required that property that is in a different location because of COVID-19 must be assessed in its ordinary location, but only for tax year 2021.

The analysis says S.B. 698's impact to local tax revenue is unknown and may be meaningful for some jurisdictions. It will also not have an effect on state revenue under the state education tax, which is levied at the same rate regardless of the property’s location, and will not affect any individual school district’s revenue.

Whitmer’s office did not respond to a request for comment by press time.

Copy RID