Tax Exemption of Personal Property Taxes for Small Businesses
Your company could be eligible for an exemption of personal property tax for 2015. Because of the legislation for personal property tax, there may be changes in the way you file your annual personal property taxes this year.
For your business to be eligible and qualify for the exemption of personal property tax you must meet these following conditions;
- True cash threshold is less than $80,000. This includes industrial and commercial personal property that is;
- owned or leased by the entity claiming the exemption
- possesses the owner or related entity claiming exemption – includes the value of leased equipment.
- The Personal Property Tax Affidavit to Claim Small Business Tax Exemption form must be filled out.
- Personal Property has to be classified as industrial or commercial as in MCL 211.34c
- The personal property is not leased or used by the person who it was previously owned by or a person who controls it or is controlled by.
For your business to be able to claim the exemption, the owner must file the affidavit annually NO LATER THAN FEBRUARY 10TH each year.
The affidavit must be filed every year or you get a tax assessed and if they are filed a day late you get the full tax assessed. If the affidavit is filed the owner does not have to file the personal property tax statement in that tax year. Contact your Tax Filing Experts at Comprehensive for more information on this tax exempt affidavit.