Property Taxes
While tax rates vary by location, Michigan's property tax system provides automatic exemptions that effectively cut personal property taxes by:
- 65% for industrial businesses
- 23% for commercial businesses
THE DETAILS
Michigan's 2008 average non-homestead property tax rate was 48.39 mills, or $48.39 per $1,000 of assessed property, with real and personal property subject to taxation at 50% of current market value. Industrial personal property is automatically exempt from 24 mills for schools, and commercial personal property is automatically 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 ZonesTM, which effectively eliminate general property taxes
- a 35% MBT credit for taxes paid on industrial personal property
FOR MORE INFORMATION
