LANSING, MICH – June 24, 2020 - The Michigan Chamber applauds the bipartisan action taken by the state legislature to provide an extension on paying summer property taxes. The Michigan Chamber championed this legislation that, due to the COVID-19 shutdowns, many businesses would have struggled to meet. The summer property tax is one of the largest annual expenses for business.
“Cash flow and liquidity will be the biggest issues facing businesses as they reopen due to the mandatory shutdown during COVID-19, and this pro-business legislation will help solve those problems by resolving an immediate and significant expense,” says Dan Papineau, Director of Tax Policy and Regulatory Affairs. “Additionally, the legislation avoids pushing the cashflow problems facing businesses off on the local units of government but keeps them whole and gets them the revenues they need earlier to operate smoothly.”
HB 5761 and HB 5810 will provide taxpayers a 6-month, penalty and interest, free extension to make their property taxes. After the 6-month period a taxpayer can work with their county Treasurer to enter an installment plan if more time to pay the summer levy is needed.
“Without this relief, the summer property tax bill could be the last nail in the coffin for several businesses,” said Papineau. “This legislation is an all-around win for negatively impacted businesses, individuals, local governments and schools. It is common sense, comprehensive solutions to real problems like this that our members need more than ever right now”.
In addition, SB 935, SB 936 and SB 937 allows businesses to pay July and August’s sales, use and withholding taxes over an extended period of time. While accelerated tax filers have been excluded from similar relief provided by the Department of Treasury in the past, this legislation includes them.
While further legislation might be needed in the future to work out the mechanics, the legislation passed yesterday is a monumental step forward in providing businesses the help they need. For further information contact Dan Papineau at (517) 371-7669