SB 331 Summary

• Modifies the small business property tax exemption process by establishing two tiers of exemptions based on combined true cash value of industrial and commercial personal property: under $80,000 (filed once) and $80,000-$179,999 (filed annually).

• Requires owners claiming exemptions under the lower tier to file a statement by February 20 with the local tax collecting unit, with late filings allowed before the March board of review's final adjournment.

• Allows property owners whose exemptions are denied to appeal within 35 days to the Michigan tax tribunal, and permits assessors to audit exemption claims for the current year and 3 preceding calendar years.

• Establishes that corrected or supplemental tax bills for improperly exempted property include interest at 1.25% monthly from the original due date, with additional interest accruing 60 days after bill issuance at the same rate.

• Takes effect December 31, 2023, contingent upon enactment of House Bill 4553 and House Bill 4554 in the 102nd Legislature.