MCL § 211.9o, also known as the “small business taxpayer personal property exemption”, allows small business owners to claim a complete exemption for industrial or commercial personal property when the following requirements are met:
- An Affidavit to Claim Small Business Tax Exemption (Form 5076) is timely filed by February 10, 2017. A link to Form 5076 is provided below:
http://www.michigan.gov/documents/treasury/5076f_493854_7.pdf
- The personal property claimed under the exemption is classified as industrial personal property or commercial property as defined in MCL 211.34c;
- The combined true cash value of all industrial and/or commercial personal property owned by, leased by, or in possession of the owner or related entity claiming the exemption is less than $80,000.00; and
- The property is not leased to or used by a person that previously owned the property or a person that directly controls, is controlled by, or under common control with the person that previously owned the property.
As the antiquated saying goes, “[t]here are only two certainties in life – death and taxes”. The small business taxpayer personal property exemption does not change that, but it certainly provides some much-needed relief to small business owners all around Michigan.
This article was written by Nezar Habhab, Law Clerk.
