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 - Affidavit to Claim Small Business Tax Exemption Under MCL 211.9o from Collection of Taxes. This form must be filed with the Assessing Department by February 10 each year.

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