Business Personal Property Tax

Defining Personal Property

Personal property is defined as property that is not real property (i.e., is not land, buildings, etc.). Examples of personal property include, but are not limited to:

  • computers
  • display racks
  • equipment
  • furniture
  • machinery
  • shelving
These examples of personal property are provided for illustrative purposes only; if you have a question whether property is personal property, please contact the Assessing Department.

Claiming Exemptions

Personal property used by businesses has been subject to taxation in Michigan. Effective for the 2014 assessment year, an exemption has been created for the personal property owned by businesses if the true cash value of the personal property owned, leased or possessed by a business or a related party is less than $80,000 within the assessment jurisdiction. This exemption has become known informally as the 'small taxpayers' exemption. The exemption is only for commercial and industrial personal property.

To claim this exemption, the business must file Form 5076 - Small Business Property Tax Exemption Claim Under MCL 211.9o from Collection of Taxes. This form must be filed with the Assessing Department by Feb. 20 each year.

Property owners who timely file this form are not required to file a Personal Property Statement. Taxpayers are required to maintain books and records for four years after filing a form claiming the exemption; penalties apply for fraudulent exemption claims.