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Payment in Lieu of Tax (PILOT) for Affordable Housing

The PILOT program offers nonprofit developers of housing that is financed via the Michigan State Housing Development Authority or the Department of Housing and Urban Development to apply for a Payment in Lieu of Tax per PA 346 of 1966. The amount of the PILOT is negotiated between the developer and the local unit of government and is based on a share of the net rental income derived from the housing development. These payments are distributed on a pro-rata basis to all local taxing jurisdictions.

Contact Phil Morse, Village Administrator, at administrator@shelbyvillage.com to learn more.

 

Industrial Facilities Tax Exemption (PA 198)

The Plant Rehabilitation and Industrial Development Districts Act, commonly known as Act 198, provides significant tax incentives to industries (manufacturing and high technology companies) for the purpose of creating new jobs and maintaining existing jobs. This program allows an obsolete plant, when replaced or restored, to have its assessed value frozen at the level prior to the improvement for a maximum period of twelve years; and new plants, as well as plant improvements, to receive a 50% exemption from property tax on the taxable value of new real estate and personal properties, also for a maximum period of twelve years. It is the responsibility of the Village Council to approve Industrial Facilities Tax Exemption applications. Download the Industrial Facilities Tax Exemption application (PDF). 

You can also contact Phil Morse, Village Administrator, at administrator@shelbyvillage.com to learn more.

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