Tax & Accounting Blog

Recent Personal Property Exemption Changes In Michigan

Blog, ONESOURCE, ONESOURCE Property Tax November 12, 2013

Michigan has passed laws that affect personal property taxpayers. Here are a few overviews of some of the changes.

Commercial and Industrial Personal Property Exemption

A law recently went into effect amending the existing industrial or commercial personal property exemptions provided in Mich. Comp. Laws Ann. §211.9o. Beginning December 31, 2013, the amendment increases the amount of eligible property value from $40,000 to $80,000; thus, taxpayers owning property in a tax collecting unit with a combined true cash value of less than $80,000 qualify for the exemption. The amendment also changes the filing requirements from filing the affidavit with the Department of Treasury to filing it to the local tax collector and changes the filing date to February 10. Property must be owned by, leased by, or in possession of the owner or related party. The bill expands the definition of eligible property to include commercial and industrial property and amends the personal property statement.

To read the bill in full, visit http://www.legislature.mi.gov/documents/2013-2014/publicact/pdf/2013-PA-0153.pdf.

Manufacturing Property Exemption
Michigan recently enacted legislation that amends the manufacturing property exemption. Beginning December 15, 2015, “qualified new personal property” will extend to property originally in service in Michigan or outside the state after December 31, 2012. The bill also states that taxpayers should send the affidavit claiming their exemption to the local tax collector, not the Department of Treasury. This applies to existing personal property as well as new personal property. Furthermore, the bill moves the filing date to February 10 of the first year the taxpayer claims the exemption and provides other changes relating to filing personal property.

The State Tax Commission issued a bulletin outlining several currently required exemption certificates, which will remain in effect until the manufacturing personal property becomes exempt under the new act. This applies to certificates in effect on December 21, 2012 for the following programs: industrial facility exemptions, the technology park development facilities tax, the new personal property exemption, and enterprise zones.

To read the bill in full, visit http://www.legislature.mi.gov/documents/2013-2014/publicact/pdf/2013-PA-0154.pdf. Also, to read the State Tax Commission bulletin, visit http://www.michigan.gov/documents/treasury/2013Bulletin12PersonalPropertyTaxChanges-ExemptionPrograms_439253_7.pdf.