Michigan business personal property taxes, when compared to other states, are fairly straightforward. For example, while some states have hundreds of different return forms—one for each county—Michigan is one of several states with a single standardized return form for all jurisdictions.
Still, Michigan is not without its state-specific dates and nuances. Keep reading to see important information you should know about this state’s personal property taxes.
Michigan Business Personal Property Tax: What You Need To Know
See below for Michigan’s key property tax dates. Note that not all dates are for the current tax year—some are for the previous year and next year, as shown in the table.
|
Key Dates |
Explanation |
|---|---|
|
December 31 |
Assessment date (prior tax year) |
|
February 20 |
Return due date (current tax year) |
|
May 31 |
Appeal deadline (current tax year) |
|
September 14 |
Summer tax bill due date (current tax year) |
|
February 14 |
Winter tax bill due date (next tax year) |
Here are a few contextual notes about the information above:
- Assessments. The assessment ratio for Michigan is 50%.
- Return form. Use Michigan form 632 to file your returns annually for assets held as of December 31 of the prior year.
- Return jurisdictions. The assessor/tax collector is the city, township, or village of counties. It’s important to remember that township names are not unique—there are often multiple townships in different counties throughout the state. Be mindful about the township for which you are submitting a return. For additional help, try this township finder resource.
- Appeals. Typically, appeals have a quick turnaround—they’re sent as early as late February. The state has up to three boards of review to hold all appeal hearings: one in March, one in July, and one in December. The board is required to meet in March, but the other two meetings are based on various state needs. Additionally, the July and December meetings are generally held to correct qualified errors and consider appeals related to certain exemptions.
- Tax bills. Michigan works on a two-tax-bill system: summer and winter. Summer bill notices are sent in early July, while winter bill notices are sent in early December.
Michigan Personal Property Tax Exemptions
For personal property tax, Michigan has two exemptions:
- Small business property tax exemption. To claim this exemption, the true cash value of assessable commercial and industrial property must be less than $80,000. You’ll need to complete and submit Michigan form 5076 in lieu of standard state return form 632. If you are granted the exemption, you’ll continue to receive it until you are no longer qualified—at that point, you’ll need to file a rescission form along with form 632 by the standard return date.
- Eligible manufacturing personal property (EMPP) exemption. To claim this exemption, all your equipment must be predominantly used for industrial processing or direct integrated support. Complete and submit Michigan form 5278 for this exemption. Note that this form is a combined document that includes a personal property statement, so there’s no need to submit form 632.
In addition, Michigan also has certain asset categories that are tax exempt:
- Supplies
- Inventory
- Intangible personal property
- Computer software (if commonly sold and purchased separately, and identified by a separate asset number)
Make Michigan Business Personal Property Taxes A Breeze With Tailored Tax Software
CrowdReason provides the solutions—and the support—you need to conquer the property tax process in every state, including Michigan. Our team members have extensive experience with property taxes—we’ve filed returns, appealed valuations, and managed tax bills. As a result, we understand what you’re trying to accomplish and have designed our software to handle nearly any challenge you can throw at it.
Our advanced data extraction software MetaTaskerPT makes data entry a thing of the past. TPT is intelligent property tax software that helps you track deadlines, identify assessment reduction opportunities, reduce return filing time, and make more informed tax decisions. TPT also:
- Generates the latest version of the state’s return form 632 and Michigan form 5076 for the small business property tax exemption
- Makes available depreciation schedules for the state’s return form 632
- Produces the latest version of Michigan form 3589 for cable television and utility personal property
- Makes available depreciation schedules for form 3589
Come join the crowd of happy clients who are conquering their property taxes with our tax automation software. Schedule a demo today.
