Personal Property

Over the last several years there have been significant changes in the assessment process as it relates to personal property, especially for industrial manufacturing property.

Small business taxpayers whose total value of assessable personal property is less than $80,000 may qualify for a tax exemption by timely filing Form 5076 with the Assessing Office.

New for 2023 personal property valued at $80,000 or more but less than $180,000 is eligible for the small business exemption, however, form 5076 (Small Business Exemption) along Form 632 (Personal Property Statement) must be filed with the Assessing Office.

Taxpayers of Eligible Manufacturing Personal Property are encouraged to file form 5278 and qualify for the ESA specific tax in lieu of the ad valorem property tax. 

These forms are available on line and more details are available under the Personal Property section below.

Small Business Tax Exemption

On October 24, 2023, Governor Whitmer signed into law P.A. 176 of 2023.  This act made changes to MCL 211.9o, requiring all eligible claimants with personal property totaling $80,000 or more but less than $180,000 in true cash value within the local assessing unit to annually file both the Small Business Property Tax Exemption Claim (Form 5076) and a personal property statement (Form 632) to qualify for the exemption.  Taxpayers wishing to claim the small business property tax exemption with true cash value greater than or equal to $80,000 but less than $180,000 must file both forms each year in which they wish to receive the exemption.

Furthermore, the act requires that assessors transmit parcel information for exempt parcels with true cash value between $80,000 and $180,000 to Treasury via their CAMA software no later than April 1.

Taxpayers receiving the small business exemption with property valued at less than $80,000 true cash value within the local assessing unit will continue to receive the exemption until they are no longer eligible for the exemption or until the true cash value of their property exceeds $80,000.

The form is listed below and available on the State Tax Commission's website at www.michigan.gov/statetaxcommission.

Form 5076 - Affidavit to Claim Small Business Tax Exemption under 211.9o

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), Affidavit to Rescind Exemption of Eligible Manufacturing Personal Property Form 5277 must be received by the Assessor of the local unit of government where the qualified personal property is located. 

Eligible Manufacturing Personal Property (EMPP) means all personal property located on occupied real property if that personal property is predominantly used in industrial processing or direct integrated support. For personal property that is construction in progress and part of a new facility not in operation, EMPP means all personal property that is part of that new facility if that personal property will be predominantly used in industrial processing when the facility becomes operational. Personal property that is not owned, leased or used by the person who owns or leases occupied real property where the personal property is located is not EMPP unless the personal property is located on the occupied real property to carry on a current on-site business activity. Personal property that is placed solely on occupied real property to qualify personal property for an exemption under 9m or 9n is not EMPP. For additional information regarding EMPP, please refer to MCL 211.9m and 211.9n and State Tax Commission Bulletin 7 of 2015 (PDF).

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 (PDF) and Michigan Department of Treasury for reference guides, topics and definitions.

Personal Property Statement

Please read the forms and instructions in their entirety to determine eligibility. Personal property that does not meet the definition of either exemption listed above should be reported on Form 632 / L-4175 Personal Property Statement. A separate affidavit/statement must be filed for each personal property parcel.

Personal Property Statements must be filed annually with the local unit (City or Township) where the personal property is located no later than February 20 of each year (postmark is acceptable).

Contact

Please feel free to contact the Chesterfield Township Assessors office at 586-949-0400 option 8, then 5, Monday through Friday, 8 a.m. to 4:30 pm, or by email if you have any questions regarding this matter.