The Tax System Tax reforms have made Michigan's system better balanced and reflective of national averages. Michigan has cut taxes twenty one times since 1992.
Localities levy taxes for local governmental operations.
The taxable value of property is 50 percent of the current market value. A key advantage in Michigan is property tax abatements, available for up to 12 years. They reduce liability on buildings, machinery and equipment by 50 percent for new facilities and by 100 percent of the new value of rehabilitated existing property. These abatements are granted by the local jurisdiction. Assistance in applying for abatements is available through Capital Choice and affiliated organizations.