The Business Property Tax Credit (BPTC) is a credit issued against the tax statements of business property (Commercial/Industrial classes), similar to Homestead Credits which can be applied to residential property. For business landowners who apply for this credit, the property taxes for the year are reduced. The state is covering this credit to the local governments through payment of the BPTC. The BPTC is a payment in lieu of taxes and can be reported as part of your property tax revenues for the year. You can also report these as line item 4463, which is an “Other State Grants & Reimbursements” line item in the chart of accounts.
The rollback replacement (commonly called “the backfill”) differs from the BPTC in that it is a reimbursement of taxes for commercial/industrial property value, which has been removed from the taxable value of a local government as part of the commercials/industrial or railroad rollback. The rollback replacement payment will be credited to the cities twice each year and should be accounted for using line item 4464 under the “Other State Grants & Reimbursements.”
