Michigan Personal Property Tax Exemption 2023

Questions about the Michigan Personal Property Tax Exemption 2023 ?

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The General Property Tax Act provides for exemptions for certain categories of personal property including: Small Business Taxpayer Exemption, Eligible Manufacturing Personal Property and Act 328 – New Personal Property. These links will provide information on each of these exemptions including determining eligibility and how to claim the exemption. Email us if you have questions at State-Tax-Commission@michigan.gov.

Eligible Manufacturing Personal Property (EMPP) MCL 211.9m and MCL 211.9n Exemption

Beginning December 31, 2015, qualified new personal property and qualified previously existing personal property is exempt from taxation.

Qualified New Personal Property is defined as property that was initially placed in service in this state or outside of the state after December 31, 2012 or that was construction in progress on or after December 31, 2012 that had not been placed in service in this state or outside of this state before 2013 and is eligible manufacturing personal property (EMPP).

Qualified Previously Existing Personal Property means personal property that was first placed in service within this state or outside of this state more than 10 years before the current calendar year and is eligible manufacturing personal property (EMPP).

Bulletins

• Assessor Guide to Eligible Manufacturing Personal Property Tax Exemption and Essential Services Assessment
• Bulletin 2 of 2017 – Electronic Filing
  

  Forms

  • Required Form – Eligible Manufacturing Personal Property Tax Exemption Claim, Personal Property Statement, and Report of Fair Market Value of Qualified New and Previously Existing Personal Property (Form 5278)
  • Form 5277 – Affidavit to Rescind Exemption of Eligible Manufacturing Personal Property Defined in MCL 211.9(m) and 211.9(n)
  • Form 632 – 2019 Personal Property Statement (As of 12-31-18)

  Education Materials

  • Memorandum Regarding Calculating Taxable Value for Personal Property
  • STC Guidance on Personal Property Reporting
  • STC Notice to Assessors Regarding Personal Property Account Numbers
  • STC Additional Guidance Regarding Personal Property Account Numbers
  • Personal Property Frequently Asked Questions

Small Business Taxpayer Exemption – MCL 211.9o

The small business taxpayer personal property exemption provides a complete exemption from personal property tax for industrial or commercial personal property when the combined true cash value of all industrial personal property and commercial personal property owned by, leased by or in the possession of the owner or a related entity claiming the exemption is less than $80,000 in the local tax collecting unit and the property is not leased to or used by a person that previously owned the property or a person that, directly or indirectly controls, is controlled by, or under common control with the person that previously owned the property. Form 5076 must be filed with the local tax collecting unit no later than February 20.

Statute

Assessor Guide to Small Business Taxpayer Exemption

Forms

• Form 5076 – Small Business Property Tax Exemption Claim Under MCL 211.9o
• Form 5379 – Assessor Affidavit to Correct Taxable Value After Denial of Eligible Personal Property Exemption Granted pursuant to MCL 211.9o
• Assessor Denial of Request for Exemption as EPP (Small Business Taxpayer Exemption), as Defined in MCL 211.9o Sample Form
• Form 5618 – Request to Rescind the Small Business Property Tax Exemption Claim Under MCL 211.9o