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.
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
Personal property used by businesses has been subject to taxation in 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 owned, leased, or possessed by the business or a related party is less than $80,000 within the assessment jurisdiction. This exemption has become known informally as the "small taxpayer" exemption. The exemption is only for commercial and industrial personal property.
To claim this exemption, the business must file Form 5076 ,Small Business Property Tax Exemption Claim Under MCL 211.9o (PDF) with the Assessing Department no later than February 20th of each year. Once filed, it is no longer necessary to file every year unless the true cash value of the company exceeds $80,000. 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.
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 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).
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.
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.