Michigan law, the Single Business Tax Act (SBTA) specifies strict requirements before a taxpayer can claim a personal property tax credit.  First, the personal property taxes must be paid (cash basis), Second, only personal property taxes assessed and paid on property classified as "industrial" will qualify for the credit, Third, the taxpayer must file a timely (no extensions) Personal Property Statement, and Fourth, proof of qualification for credit must be submitted with the return.

The Michigan Department of Treasury (Treasury) has issued a release (Michigan Legal Policy Directive 2008-2, 07/29/2008) providing additional guidance for the administration of the credit against the former Single Business Tax.  The credit is equal to 15% of taxes paid on industrial personal property in tax years beginning in 2006 and 2007.  For the 2007 calendar year, the credit is available for a percentage of taxes paid in 2007.  Such taxes could include the 2007 summer and winter taxes paid in 2007 and taxes levied in 2006 but paid in the 2007 tax year. 

The release specifies the proof needed to substantiate the credit.  In addition, for taxes levied under the Industrial Facility Tax, the property must be situated on land classified as industrial property under Michigan law. [MCL 211.34c] Treasury will determine who qualifies for the credit in a leasing situation by using the same proofs required in a non-lease situation.  Treasury will look to the Summer and/or Winter Tax Statement, which will show to whom the property was assessed.  The person named by the local taxing jurisdiction in the bill as liable for the tax may claim the credit, provided all the other qualifiers are met.