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Tag Archive | "Personal Property Tax"

Deadline to file for new Michigan tax exemption is February 10


From Kent County Bureau of Equalization

 

There are new changes in Michigan’s Personal Property Tax beginning this year.

These changes exempt personal property from taxes under certain conditions. The Kent County Bureau of Equalization wants to be sure all property owners are aware of this new tax break, and that they file for exemption before a fast-approaching deadline.

A taxpayer who owns, leases, or has possession of personal property, with a total true cash value of less than $80,000, may request the property be exempt by filing an exemption affidavit (Form 5076) with the local unit of government. The affidavit must be filed by February 10 each year in order to obtain the exemption. If an affidavit is not timely filed, the property will not be exempted. Property owners who file the affidavit are not required to file the personal property statement as they have in the past.

“Businesses will want to pay special attention to their Personal Property Statements and other letters from their Assessor this year,” said Matt Woolford, Director of the Kent County Bureau of Equalization. “The majority of small businesses may find they are eligible to be exempted from paying personal property taxes. Like a homeowner, though, businesses will have to apply to their local assessor to receive an exemption. It is in every business owner’s interest to educate themselves on these new tax breaks. They should contact their local assessor to find out more how this law may apply to them.”

Along with the deadline, there are provisions that prevent property owners from dividing up their property among different entities to fall under the threshold. In addition, the law requires the property owner to maintain records demonstrating the value of their personal property and make those records available to the assessor on demand.

This is a significant change to the personal property tax law and property owners with questions are encouraged to contact their local Assessor’s office. For 2014 only, a taxpayer who misses the February 10 deadline may petition the March Board of Review to add the exemption; however, the Bureau of Equalization strongly recommends filing an exemption affidavit before the deadline.

The Affidavit of Owner of Eligible Personal Property Claiming Exemption from Collection of Taxes (Form 5076) can be found at http://www.michigan.gov/documents/treasury/5076_439273_7.pdf or at your local Assessor’s office.

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Personal property tax change


A change in the personal property tax law for 2014 could give some small business owners some relief.

Effective December 31, 2013, commercial and industrial personal property with a combined true cash value of less than $80,000, is eligible for an exemption—but the exemption must be filed by February 10.

True cash value is the market value of all personal property owned by, leased by or in the possession of the owner or related entity, within a local tax-collecting unit.

To qualify for the exemption, the taxpayer must file the “eligible personal property exemption affidavit” with the local city or township. If it is not filed on time, the taxpayer will not receive the exemption. The affidavit form is available online at Michigan.gov and on the City of Cedar Springs website.

Taxpayers who qualify by filing on time, are not required to also file a personal property statement. But they still must maintain books and records relating to the description, date of purchase or acquisition, purchase or lease price, and value of all the industrial and commercial property for four years. They must make these records available to the local assessor, county equalization department, and the Department of Treasury upon request.

If the assessor believes that the property is not eligible, the assessor may deny the claim and notify the taxpayer of the reasons for the denial. A taxpayer may then appeal the denial before the Board of Review. Failure to file an exemption on time does not qualify as a denial and cannot be appealed.

Anyone who fraudulently claims an exemption for personal property would be guilty of a misdemeanor punishable by imprisonment of 30 days to 6 months and/or a fine of $500 to $2,500.

Taxpayers not eligible for the exemption must still file a personal property statement by February 20. Failure to file either a personal property statement or an exemption affidavit will result in an estimated assessment.

For more info, go to Michigan.gov/treasury.

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Replace, don’t erase the personal property tax


From The Cedar Springs Public Library

 

Governor Snyder and some legislators are proposing an additional $1.3 billion tax cut for Michigan businesses by eliminating something called the Personal Property Tax (PPT), a tax paid only by businesses. This tax funds local government activities such as police, fire and libraries.   $30 million of this goes to public libraries statewide with 3.8 million collectively to the Lakeland Library Cooperative’s forty-one libraries.

From 2000 to 2011 state aid to public libraries has been reduced by 76 percent from $15 million to $5.4 million. Last year the libraries in the Lakeland Library Cooperative collectively lost $668,066 in the removal of Renaissance Zone exemption funds.

Losing this additional PPT money will result in reductions to library hours, new collection purchases, curtailing library services and, in some instances, libraries will close in the eight-county Lakeland area.

The library community is not opposed to eliminating the PPT, but a full replacement of these funds is necessary to maintain current levels of service. Libraries are urging citizens to contact their legislators to ask for a guaranteed full replacement of the personal property tax if it is repealed.

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