Tuesday, February 4, 2014

Deadline Approaching for New Personal Property Tax Exemption

The February 10th, 2014 deadline for a new and potentially money-saving exemption from the Michigan Personal Property Tax is fast approaching.

Specifically, the law now provides for businesses that own, lease or possess commercial and industrial personal property with a market value of less than $80,000 to eliminate their 2014 Personal Property Tax bill. This is a significant jump from the previous threshold of $40,000, and the inclusion of commercial and industrial property may increase applicability among investors.

Eligible businesses must file the MI Treasury Form 5076 (Affidavit of Owner of Eligible Personal Property Claiming Exemption from Collection of Taxes) by February 10th of this year. Businesses that qualify for the exemption by filing the affidavit on time are not required to file a Personal Property Statement. However, they are required to maintain adequate books and records on the equipment to substantiate the claim.

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