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Industrial Facility Exemption
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How is the tax computed for a new facility?
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Answer:
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The act states that the tax computation for a new facility is determined by multiplying the TV of the facility by 1/2 of the total mills levied as ad valorem taxes for that year by all of the taxing units where the property is located PLUS the entire State Education Tax millage. IMPORTANT: See section 14a of the act which states that the State Treasurer may exclude 1/2 or all of the mills levied under the State Education Tax Act under certain circumstances.
A parcel of property holding a "New" Industrial Facilities Exemption Certificate will have two assessments. The land will be assessed on the regular (ad valorem) assessment roll that the assessor has turned over to the March Board of Review. The building, land improvements and personal property (pertaining to the same certificate) will have an assessment on the Industrial Facilities Tax Roll.
P.A. 1 of 1996 requires the assessor to calculate a Capped Value and a Taxable Value for the building and land improvements of a parcel of real property holding a "New" Industrial Facilities Tax Exemption Certificate.
Taxes on a property holding a "New" Industrial Facilities Tax Exemption (IFT) Certificate shall be levied against the Taxable Value of the property, NOT the State Equalized Value. The Taxable Value of REAL property which has a "New" IFT Exemption Certificate is calculated the same way that Taxable Value is calculated for the non-IFT, ad valorem assessment roll.
The property's land assessment on the ad valorem roll may be adjusted by the March Board of Review. The IFT roll assessment of a "New" Industrial Facilities Tax Exemption Certificate may also be adjusted by the March Board of Review.
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