While tax rates vary by location, recent revisions in Michigan's property tax system provide exemptions that will effectively cut personal property taxes by:

• 65% for industrial businesses
• 23% for commercial businesses

The Details

Michigan's 2007 average non-homestead property tax rate was 51.85 mills, or $51.85 per $1,000 of assessed property, with real and personal property subject to taxation at 50% of current market value. Industrial personal property is exempt from 24 mills for schools, and commercial personal property is exempt from 12 mills. Additional property tax abatements available to Michigan businesses include:

• locally-negotiated abatements, including 100% new personal property exemptions available in specified communities
• 50% abatements for up to 12 years on real and personal property for industrial processors and "high tech" companies
• abatements up to 100% for rehabilitation projects
• more than 100 sites in virtually tax-free Renaissance Zones^TM, which effectively eliminate general property taxes
• a 35% MBT credit for taxes paid on industrial personal property

For More Information

• Michigan Department of Treasury's Tax Estimator
• MEDC Incentive Programs