It’s not too late for small businesses to take advantage of personal property tax reform this year
February 28, 2014
If you are willing to go through your local Board of Review, you still have time to take advantage of a new exemption from the state’s personal property tax (PPT) even if you missed the Feb. 10 deadline.
Businesses that own, lease or possess commercial or industrial personal property with a market value of less than $80,000 may eliminate their 2014 tax bill by filing for the exemption. The deadline to file for the exemption was Feb. 10. However, for the 2014 year only, any owner of eligible personal property that did not file in time may appeal with their local municipality’s March 2014 Board of Review to take advantage of this exemption and its savings this year. Each local municipality has a different procedure for filing an appeal with the March Board of Review to claim the PPT exemption for 2014. Small business owners are encouraged to contact their local tax assessor as soon as possible for information on how to file an appeal.
Lawmakers approved the exemption in 2012 because the PPT in effect double-taxes businesses on equipment such as computers, vehicles, desks and machinery, and is a disincentive to invest in Michigan. The exemption took effect Dec. 31, 2013 for the 2014 tax year.
The Michigan Legislature passed landmark legislation in 2012 to modernize Michigan’s outdated and uncompetitive business tax code. Earlier this week, a package of bills was introduced in Lansing to provide 100 percent reimbursement for all local services previously funded by the personal property tax. This 10-bill package addresses local government concerns that only some important services would be reimbursed under the 2012 reform.
Please contact our government relations department at (800) 362-5461 if you have any questions.