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PERSONAL PROPERTY QUESTIONS AND ANSWERS - State Tax Commission

Frequently Asked Questions

New Personal Property Exemption (PA 328 of 1998, as amended)

Personal Property Tax Exemptions


NOTICE - If you had assessable personal property in your possession on December 31, each year, you must submit a completed Form L-4175 to the assessor of the local unit where the property is located by the statutory due date, even if the assessor does not send you a form to complete.

2018 Personal Property Statement - Deadline filing date February 20, 2018

2017 Personal Property Statement - Deadline filing date February 21, 2017

2017 Personal Property Statement - fillable link    Form L-4175 (632)

(NOTE: MCL 211.19 states that personal property statements must be completed and delivered on or before February 20 of each year.  To assure timely-processing prior to opening of March Board of Review, filing earlier is requested  when possible.)

Affidavit to Claim Small Business Tax Exemption per MCL 211.9o Form 5076  

Deadline filing date February 10, 2017

(IMPORTANT INFORMATION: This affidavit will exempt property owned only by the entity filing the affidavit. If personal property is leased to or used by an entity other than the property’s owner, the owner of that personal property must file the affidavit for that property, not the lessee or the user. The owner may file the affidavit and claim the exemption only if the True Cash Value of all of the commercial or industrial personal property located within the city or township that is owned by, leased to, or in the possession of the owner or a related entity was less than $80,000 on December 31, "tax day" each year. Filing deadline February 10th.

MCL 211.9o

(2) An owner of eligible personal property shall claim the exemption under this section by annually filing an affidavit with the local tax collecting unit in which the eligible personal property is located not later than February 10 in each tax year. The affidavit shall be in a form prescribed by the state tax commission and shall include any address where any property owned by, leased to, or in the possession of that owner or a related entity is located within that local tax collecting unit. The affidavit shall require the owner to attest that the combined true cash value of all industrial personal property and commercial personal property in that local tax collecting unit owned by, leased to, or in the possession of that owner or a related entity on December 31 of the immediately preceding year is less than $80,000.00.

(6) If a person fraudulently claims an exemption for personal property under this section, that person is subject to the penalties provided for in section 21(2).

As a business owner you are required to file if you were in business as of December 31, each year.  It is your obligation to complete the Personal Property Statement or Affidavit and submit to your local assessing office - whether a statement was mailed to you or not.  

NOTICE: This form is issued under authority of the General Property Tax Act. Filing is mandatory. Failure to file may result in imprisonment for a period not less than thirty days, nor more than six months; a fine not less than $100, nor more than $1,000; or both fine and imprisonment at the discretion of the court. See MCL 211.21.

CAUTION: Read these instructions carefully before completing the form. Complete all sections. Because this form has been coded, it is imperative that it be returned to assure proper processing. If all of the personal property formerly in your possession has been removed from this assessing unit before December 31, each year, you must notify the assessor at once in order to change the records accordingly.  This statement is subject to audit by State Tax Commission, County Equalization Department or Assessor.

Failure to file this form by its due date will jeopardize your right to file a Section 154 appeal with the State Tax Commission.  You are advised to make a copy of the completed statement for your records. This form must be filed in the city or township where the personal property is located on December 31, each year.

Personal Property Frequently Asked Questions - State of Michigan

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ESA Topics: Industrial Processing 

Eligible Manufacturing Personal Property (EMPP) is defined as all personal property located on occupied real property if that personal property is predominantly used in industrial processing or direct integrated support.

This ESA topic will focus on Industrial Processing.

For information about Essential Services Assessment (ESA), and additional ESA Topics, visit the ESA website at www.michigan.gov/esa.  ____________________________________________________________________________________

Personal Property Update - State Tax Commission

State Tax Commission at their meeting on September 22, 2015 approved Form 5278, Affidavit and Statement for Eligible Manufacturing Personal Property & Essential Services Assessment, and Form 5277, Affidavit to Rescind Exemption of Eligible Manufacturing Personal Property Defined in MCL 211.9(m) and 211.9(n).  Links to these forms are below.

Beginning December 31, 2015 (for 2016 assessment year) qualified new personal property and qualified previously existing personal property located on occupied real property is exempt from ad valorem taxation and is instead subject to State Essential Services Assessment.  Additionally, certain P.A. 198 (IFT) Property and New Personal Property (P.A. 328) are subject to State Essential Services Assessment.  To claim this exemption, a fully completed Form 5278 must be received by Assessor of the local unit of government where the qualified personal property is located no later than February 20Taxpayers should not complete this affidavit and statement unless their personal property meets the definition of eligible manufacturing personal property.

Property that was placed in service in 2006 through 2012 will still be reported as ad valorem personal property in Part 2 on Form 5278, Affidavit and Statement for Eligible Manufacturing Personal Property and Essential Services Assessment.  Property meeting the definitions of qualified new personal property and qualified previously existing personal property placed in service after 2012 and prior to 2006 will be exempt from ad valorem taxes and will instead pay State Specific Essential Services Assessment.

Assessors are reminded that they are not required to mail Form 5278 to taxpayers. 

Taxpayers can obtain a copy from our website, www.michigan.gov/statetaxcommission, or www.michigan.gov/PPT.  Assessors should ensure that Form 5278 is timely filed and fully completed by the property owner.  Forms that are not fully completed should result in denial of the exemption.  Assessor should carefully evaluate business activities of the claimant to ensure that they meet statutory requirements of Eligible Manufacturing Personal Property Exemption.More information and training videos are being developed and will be available soon at www.michigan.gov/PPT.   Specific questions and information regarding Essential Services Assessment (ESA) can be found at www.michigan.gov/ESA.  Additional questions should be sent via email to ESAQuestions@michigan.gov.

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2013 Recent Changes to Personal Property Tax-Link to Michigan Municipal League

P.A. 397-404 & 406-408  Personal Property Tax Phase out

Bulletin 11 of 2013 Personal Property Tax Changes.pdf

Bulletin 12 of 2013 Personal Property Tax Changes - Exemption Programs.pdf

State News - Personal Property Tax Reform Legislation

This page last updated on 11/15/2017.