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:
- display racks
Personal property used by businesses has been subject to taxation in Michigan. Effective for the 2014 assessment year, an exemption was 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. This form must be filed (postmark is acceptable) with the Assessing Department by February 20 year. Effective for the 2019 tax year, once the small taxpayers exemption has been granted, it will remain in place unless denied by the assessor or unless the business exceeds the $80,000 limit (in which case the business must file a Personal Property Statement with the assessor). If Form 5076 is filed late, Request Submittal of 5076 Form to MBR (PDF) must be completed in order for Form 5076 to be considered by the March Board of Review.
Property owners who timely file Form 5076 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.