A new Michigan Personal Property Tax Exemption is in place which may allow your business personal property tax relief for 2014. The State legislature added the exemption to not only provide tax relief, but to make the filing less complicated. Small businesses that own, lease, or have possession of personal property with a total true cash value of less than $80,000 (assessed value less than $40,000), may request the property be exempt by filing an exemption affidavit (Form 5076) with their local unit of government. If you have property in more than one location, you can file separate affidavits or Personal Property Tax Statements for each locale.
Notices regarding this exemption may have been sent to those taxpayers who possibly qualify by their local assessor. Personal property can consist of furniture, fixtures, equipment, computers, and other tangible assets, but not the building and the land it is on. Other assets, such as vehicles, are not subject to the Personal Property Tax.
To claim the exemption, this Affidavit must be received by the Assessor no later than February 10, 2014. If taxpayers miss the February 10th deadline, they may petition their local Board of Review in March. However, it’s not guaranteed the Board of Review will grant the exemption and more than likely will place greater scrutiny on the assets of your business.
The owner or officer of the eligible property must sign the affidavit; if found false and the actual true cash value exceeds $80,000, fraud penalties may apply.
If you have questions or need assistance in preparing your affidavit, please contact us at (616) 642-9467.