Do you qualify for a Personal Property Tax Exemption?
Owners of businesses with a taxable value less than $40,000 qualify for an exemption from personal property taxation!
The state's General Property Tax Act was amended in 2012 to provide an exemption beginning in 2014 for industrial or commercial personal property meeting the threshold. Public Act 153 of 2013 changed the measurement base from taxable value to true cash value. With the shift, the exemption threshold is for industrial or commercial property with a true cash value less than $80,000.
True cash value generally is the computed depreciated value after applying the Michigan personal property depreciation multipliers. Since taxable value is equivalent to 50 percent of true cash value, there is no net effect on the exemption.
The exemption, however, also was amended to require related persons to combine the true cash value of their personal property to determine eligibility.
Personal property is items that are not real property, such as land or buildings, and are not permanently affixed to land. Examples include equipment, furniture, tools and computers. If you are not sure whether an item is personal property, contact your local assessor or the Oakland County Equalization Division at 248-858-0757.
The small taxpayer exemption is open to the owners of commercial and industrial property only and Michigan Treasury Form 5076 claiming the exemption must be filed with your local assessor by February 20th. Once you qualify, you no longer need to request this exemption annually. It stays exempt until you declare you no longer qualify.
Click here to download the form.
All other Personal Property Statements (Form L4175) must be filed by Feb. 1st.
Click to download the 2021 L-4175.pdf form.
for the state's FAQs about the Personal Property Tax.