Air and industrial water pollution control facilities are exempt from
sales, use, and property taxes in Michigan. "Facility" means any
machinery, equipment, structure, any part, or accessory used for the
primary purpose of controlling or disposing air or industrial water
pollution. The Michigan Department of Environmental Quality (DEQ) is
responsible for determining what property is eligible.
There are two separate applications for air and water pollution
control, which should be submitted to the Michigan Department of
Treasury for processing. As part of the process, the DEQ will review the
application submitted to the Michigan Department of Treasury and local
governmental units will also receive a copy of the application. Water
pollution facilities should use Form 891 and air pollution facilities
should use Form 3828. This certification process is used for both the
sales tax and property tax exemptions. The exemptions do not take effect
until approved by the state agency.