February 10, 2017 Deadline for Small Businesses to File for Michigan Personal Property Tax Exemption

 

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.

 

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