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Michigan property taxes are levied as a millage rate. A mill equals one dollar per $1,000 of assessed property; property is assessed at 50% of market value.
A total non-homestead millage rate levied on businesses will include the 6-mill state education tax (SET), 18 mills for local schools, and all other levies of local taxing jurisdictions (county, city, community college, etc.).
The Renaissance Zone waives all general mills levied by the local jurisdictions, including any school millage. Property owners are still responsible for property taxes levied to pay local bonded indebtedness and special assessments. The Renaissance Zone benefits are phased out in 25% increments during the last three years of the zone's existence.
Recent property tax reforms have exempted industrial personal property – inside and outside of a zone – from the 6-mill State Education Tax (SET) and 18 mills for local schools. Under the same reform, all Michigan commercial personal property is automatically exempt from 12 mills of the local school millage. These personal property exemptions will benefit companies with or without a zone.
To illustrate the zone impact on property taxes, here is a hypothetical non-homestead millage rate:
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Hypothetical Taxing Jurisdiction
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Abated
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Non-Abated
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County General Operating Mills:
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5.8491
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City General Operating Mills:
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2.4357
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Community College Mills:
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1.8221
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Community College Bond Debt Mills:
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0.765
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Intermediate School District Mills:
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4.9162
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Local School Mills:*
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18
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Local School Bond Debt Mills:
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2.73
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State Education Tax:*
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6
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Total Abated
39.0831
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Total Non-Abated
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* Regardless of zone status, industrial personal property is exempt from both the local school mills and the State Education Tax. Likewise, commercial personal property is exempt from 12 of the 18 local school mills.
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