News from the Michigan Department of Treasury, Revenue Sharing and Grants Division:

On June 25, 2018, Governor Snyder signed into law Public Act 247 of 2018. The act makes amendments to the Local Community Stabilization Authority Act, including the calculation of school debt loss.

Beginning calendar year 2018, a school district or intermediate school district (ISD) will have two options for determining the qualified school debt millage rate to be used in the calculation of the school debt loss reimbursement. Below are the details of the options available for the calculation of the qualified school debt millage rate:

Option 1:  The school district or ISD will have the option to be reimbursed for the current year debt millage rate levied for the payment of principal and interest of obligations approved by the electors before January 1, 2015, or obligations pledging the unlimited taxing power that were incurred before January 1, 2015. This option must be elected annually by filing Form 5451: 2018 Debt Millage Rate for Personal Property Tax Reimbursement to School District or Intermediate School District (ISD) on or before August 1.

Option 2:  If a school district or ISD fails to file Form 5451 by August 1 or if the school district or ISD does not elect to use the current year debt millage rate levied for obligations approved or incurred before January 1, 2015, then its school debt loss reimbursement will be calculated using the lesser of the highest total of all debt millage rates levied in 2012 through 2014 or the total of all debt millage rates levied in 2017. The Department of Treasury’s (Treasury) calculation of the lesser of the highest total of all debt millage rates levied in 2012 through 2014 or the total of all debt millage rates levied in 2017 is located on Treasury’s website, under the Millage Rate Comparison Reporting Requirement at www.michigan.gov/pptreimbursement.

NOTE: If a school district or ISD fails to submit the Form 5451 or does not elect to use the current year levy of certain obligations on the Form 5451, then its debt millage rate will be calculated by Treasury for 2018 and all future years by using the lesser of the highest total of all debt millage rates levied in 2012 through 2014 or the total of all debt millage rates levied in the prior year.

An electronic version of Form 5451: 2018 Debt Millage Rate for Personal Property Tax Reimbursement to School District or Intermediate School District (ISD) can be found by clicking here. If the school district or ISD elects to use option 1, the school district or ISD should report the combined debt millage rate levied in both July 2018 and December 2018. Lines 3 and 5 of Form 5451 are calculated fields and will automatically calculate if the form is completed electronically. If option 1 is selected, the millage rate reported on line 3 will be used to calculate the personal property tax distribution for school debt loss.

Complete and return the Form 5451 by August 1, 2018 (as required by law). The completed form can be submitted by email to TreasORTAPPT@michigan.gov, by fax to 517.335.3298, or by mail to:

Michigan Department of Treasury
Revenue Sharing and Grants Division
PO Box 30722
Lansing, MI  48909

Please direct any questions regarding the completion of this form to TreasORTAPPT@michigan.gov or 517.373.2697.