Michigan State and Local Tax Updates June 2020

Tax Tribunal deadlines for certain property tax appeals have been amended

Under Michigan state law, a petitioner now has until August 31, 2020, to file a property tax appeal if the filing deadline otherwise provided was any day after May 27, 2020, and before Sept. 1, 2020. The appeal can relate to assessment disputes as to valuation or exemption of certain property, residential property disputes, and disputes involving property other than residential property if the property’s taxable value of state equalized valuation isn’t more than $100,000 and proceedings involving an appeal of any other tax over which the Tribunal has jurisdiction if the amount of tax in dispute is $20,000 or less.

MI updates marijuana MRE tax payments

The Michigan Dept. of Treasury has updated information on how marihuana retailers can make Michigan Retailers Excise (MRE) tax payments. Payment can be made via Michigan Treasury Online using an e-check or credit card. Cash payments for sales, use and withholding (SUW) and MRE are by appointment only, Tuesday through Thursday between the 17th and 23rd of each month. Taxpayers must call (517) 636-5265 to schedule an appointment. Cash payments under $10,000 can be made at any Treasury Dept. field office (except Detroit). Cash payments over $10,000 can be made at select locations. All cash payments must include Form 5677, Marihuana Retailers Excise Tax Payment Voucher Form.

MI adapts new procedures for collection of delinquent village property taxes

New procedures have been adapted for the collection of delinquent village property taxes. Michigan has amended the General Law Village Act to revise the way villages determine when delinquent tax bills are forwarded to the county treasurer. Taxes collected by the village must be returned delinquent to the county treasurer by Sept. 15 unless the village’s governing body has adopted a resolution providing that they be returned on the same date that county taxes are returned delinquent for collection. To apply to the immediately following summer tax levy, the resolution must be adopted by June 1 of that year. Contact Brady Ware for more information.

 Michigan Dept. of Treasury issues Form 5603-CARES Act

Due to the impact of the Coronavirus Aid, Relief and Economic Security (CARES) Act on individual income tax filers with a Michigan net operating loss (NOL), the Michigan Dept. of Treasury has replaced Form 5603 with Form 5603-CARES Act. Effective immediately, taxpayers should use the new form when requesting a refund from a 2018 or 2019 NOL carryback. An NOL created in these years can be carried back to the five preceding tax years to offset income subject to tax. If an election was made to forgo the entire carryback period, then a taxpayer doesn’t need to file this form. Once the election is made, it is irrevocable. Contact Brady Ware for more information.

MI announces temporary increase to prepaid sales tax rate for gasoline purchases

The Michigan Dept. of Treasury has announced that, effective for the period of July 1, 2020, through July 31, 2020, the prepaid sales tax rate for the purchase of gasoline will increase to $0.081 per gallon from the June 2020 rate of $0.071 per gallon. Additionally, for the same period, the prepaid sales tax rate for the purchase of diesel fuel will decrease to $0.124 per gallon from the June 2020 rate of $0.129 per gallon. The prepayment rates for both gasoline and diesel fuel are set every month by the department.

MI Tax Tribunal reponds to Whitmer’s lifting of COVID-19 restrictions

The Michigan Tax Tribunal has detailed its response to Governor Whitmer’s recent lifting of certain restrictions imposed because of the COVID-19 pandemic. The time period to file answers to petitions and to file motions and responses to motions in cases not currently scheduled for a Small Claims telephonic hearing began on June 2, 2020. If the new deadline falls on a weekend or state holiday, the filing will be treated as timely if filed on the next business day. For example, if a Proposed Opinion and Judgment was issued during the “Stay Home, Stay Safe” order, the parties now have 20 days from June 2, 2020, to file exceptions.

MI local governments can provide notice of tax abatement hearings electronically and by newspaper

Governor Whitmer is allowing local governments to provide notice of tax abatement hearings electronically and by newspaper. Under an executive order, local governments may use alternative means, other than mass mailings, to send out hearing notifications. Notice of any public hearing required to take place under a tax abatement statute may be provided electronically and by newspaper. The executive order continues through June 30, 2020.

Michigan’s extends tax foreclosure redemption deadline

Michigan’s tax foreclosure redemption deadline has been extended. Governor Gretchen Whitmer signed an executive order that extends the deadline for Michigan residents to pay back taxes and avoid foreclosure on their property during the ongoing COVID-19 pandemic to June 29, 2020. This extended deadline doesn’t apply to property already subject to a court order providing a deadline later than June 30, 2020. The deadline was previously extended from March 31 to May 29, 2020.

 

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