Each year most business owners in Michigan are required to file either a personal property tax form or a property tax exemption form. Businesses with personal property having a true cash value less than $80,000 can qualify for a tax exemption. While this exemption has been around since 2014, it is important for businesses to realize they must file the exemption every year, or they will be liable for paying tax on their personal property.
For 2018, the exemption form is due on or before February 20 th at the assessor’s office in the township where the personal property is located. This is the first year that the state has directed the townships not to mail out the exemption form, so it is up to the individual businesses to either pick up these forms or download them on line and fill them out. Since the forms are not being sent, it is much more likely for businesses to miss this filing deadline. Once past, there are no exemptions and the taxes will be assessed to the business.
Manufacturers may be eligible for a special exemption referred to as the “Eligible Personal Property Tax Exemption” that can reduce the amount of personal property tax due. This exemption is claimed by filing Form 5278 instead of form 5276. Remember to get these forms in before February 20 th! For a link to the forms, click here.
Dan Stiebel, CCIM