Personal Property Reforms & Exemptions

Small Business Tax Exemption

Personal property used by businesses is subject to taxation in the state of Michigan. Starting with the 2014 assessment year, an exemption was created for the personal property owned by businesses if the true cash value of the personal property is less than $80,000 and is owned, leased, or possessed by the business or a related party within the assessment jurisdiction. This exemption has become known informally as the "small taxpayer" exemption. This exemption is only for commercial and industrial personal property.

To claim this exemption, the business if located in Trenton must file Form 5076, Small Business Property Tax Exemption Claim Under MCL 211.9o (PDF) with the Assessor’s Office no later than February 20th of each year. Unless the true cash value of the company exceeds $80,000, it is no longer necessary to file every year.  Property owners who file this affidavit are not required to file a Personal Property Statement. Taxpayers are required to maintain books and records for four years after filing an affidavit claiming the exemption; penalties apply for fraudulent exemption claims. View links Below

Eligible Manufacturing Personal Property Exemption

Beginning December 31, 2015 (for the 2016 assessment year), the Eligible Manufacturing Personal Property Exemption was created. To claim this exemption, a fully completed Form 5278, Eligible Manufacturing Personal Property Tax Exemption Claim, Personal Property Statement and Report of Fair Market Value of Qualified New and Previously Existing Personal Property (PDF), must be received by the Assessor’s Office when the personal property is located in the City of Trenton.

For additional information regarding EMPP, please refer to MCL 211.9m and 211.9n and State Tax Commission Bulletin 7 of 2015 (PDF).

Read through the information regarding this exemption. Do not complete this affidavit and statement unless the personal property meets the definition of Eligible Manufacturing Personal Property (EMPP). Refer to Commission Bulletin 7 of 2015. View Links Below

RELATED LINKS

Form 5076 ,Small Business Property Tax Exemption Claim Under MCL 211.9o

Form 5278, Eligible Manufacturing Personal Property Tax Exemption Claim, Personal Property Statement and Report of Fair Market Value of Qualified New and Previously Existing Personal Property

MCL 211.9m and 211.9n

Commission Bulletin 7 of 2015