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
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.
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. The small taxpayers' exemption was expanded effective for 2023. The $80,000 true cash limit for the exemption was increased to $180,000 for 2023.
To claim this exemption, the business must file Form 5076 - Small Business Property Tax Exemption Claim Under MCL 211.9o (PDF). This form must be filed (postmark is acceptable) with the Assessing Department by February 21, 2023. For personal property valued less than $80,000, 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. Taxpayers are required to rescind the exemption and file a Personal Property Statement when they no longer qualify for the exemption; significant penalties apply for failing to rescind the exemption. For personal property valued at $80,000 or more but less than $180,000, a Personal Property Statement must be filed annually along with Form 5076. Late-filed Forms 5076 can be filed directly with the March Board of Review; if Form 5076 is filed late, Request Submittal of 5076 Form to MBR (PDF) must also be filed for the Form 5076 to be considered by the March Board of Review.
Taxpayers are required to maintain books and records for four years after filing a form claiming the exemption; penalties apply for fraudulent exemption claims.