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Are there restrictions on how personal property replacement tax money can be used?
If part of the former personal property tax money was used to pay off “debt service,” a comparable proportion of the replacement tax money received must go toward this purpose. The same holds true for pension or retirement obligations previously supported by personal property taxes. Certain municipalities and townships also are required to allocate a portion of their payments to dependent library districts under their jurisdictions. After these obligations have been satisfied, the remaining money can be used for the same purposes as the money the district raised through real estate taxes. For more information, see Personal Property Replacement Tax - Local Governments or PTAX-1002-23, Local Governments' Guide to Tax Allocations, Calculation of Proportionate Share of Personal Property Replacement Taxes.
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