INTRODUCTION
Levy Exemptions are used to designate special circumstance exemptions where a parcel may be exempt from a particular tax (in full or in part) that requires special calculation rules for implementation.
More and more exemptions with varying rules related to the calculation of taxes are being added all the time. This document will explain how to set up and use identifiers within the system to apply these exemptions to parcels.
Edit | Adjust System Preferences | System Config | Levy Exemptions
Before any exemptions can be assigned to a parcel, the specific Levy Exemption for the category or group must be added. To do so, navigate to the Edit | Adjust System Preferences | System Config window and click on the ‘Levy Exemptions’ folder.
Levy exemption codes (‘Levy Ex CD’) are the identifiers that are assigned to individual parcels. The “Exemption Method” (explained below) tells the system what the proper calculation should be for that exemption.
The ‘Default Start Year’ and ‘Default End Year’ define when an exemption starts. The dates shown are default values and can be changed when added to an individual parcel.
Levy Exemptions are assigned to individual parcels in the Manage Property Records | Values Page workspace on the ‘Levy Exemptions’ tab.
Enter the ‘Levy Ex CD’ defined in System Preferences and the appropriate ‘Start Year’ value.
NOTE: Not all levy exemptions require an ‘Ending Year’’. This field can be left blank until the exemption has ended or been rescinded.
‘Renaissance Zone’ Exemption (aka ‘RenZone’)
Description
Renaissance Zone parcels are exempt from all levies (except debt levies) for a span of years. As the exemption expires the parcel is only partially exempt from these levies (i.e., in the last three years the exemption declines from 100% exempt to 75%, 50% and 25% exempt).
Parcel Setup
Renaissance Zone exemptions have very specific ‘Start’ and ‘End’ years. (The ‘End Year’ assigned to the parcel is the year the parcel’s Renaissance Zone exemption is calculated at the 25% rate.)
Levy Definition Setup
When configuring a levy for a Renaissance Zone exemption, the ‘RenZone Exemption’ option on the ‘General’ tab for the levy should be checked.
‘Supportive Housing’ Exemption
Description
Tax bills for Supportive Housing parcels are actually PILT (Payment in Lieu of Taxes) properties. Tax bills generated against these parcels are actually paid by the State of Michigan. Taxes levied are at the same level as the year of the original exemption. Though the distribution may change in following years, the totals taxes levied remains at a fixed amount.
Parcel Setup
When assigning the levy exemption to a Supportive Housing parcel, the ‘Start Year’ determines the base taxes levied until the exemption is rescinded. The ‘Ending Year’ is left blank until the year the exemption is rescinded.
Levy Definition Setup
There are no specific ‘Levy Definition’ requirements for a Supportive Housing exemption.
‘Public School Academy’, ‘Urban High School’ and ‘School of Excellence’
Exemption
Description
Parcels with this levy exemption are exempt from school operating levies.
Parcel Setup
Assign the ‘Levy Exemption Code’ to the parcel along with a ‘Start Year’. Leave the ‘End Year’ blank until the exemption is rescinded.
Levy Definition Setup
‘School Operating’ levies should be modified to ‘Exclude the Levy Exemption Code(s)’ assigned to parcels with this exemption.
‘Development Property’ Exemption
Description
Development Properties can be exempt from school operating levies until the property is sold or three years, whichever comes first.
Parcel Setup
When assigning a Development Exemption to a parcel enter both a ‘Start’ and ‘End Year’ value. The ‘End Year’ value should be two years after the ‘Start Year’ to show the maximum extent of the exemption. If the parcel is sold before the ‘End Year’, the value will need to be changed on the parcel.
Levy Definition Setup
‘School Operating’ levies should be modified to ‘Exclude the Levy Exemption Code’ assigned to parcels with this exemption.
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