Personal Property FAQ
Q: What is personal property tax?
A: General explanation – the Michigan Constitution provides for the assessment of all real and tangible personal property not exempted by law. Personal Property is property used for business purposes that is not real estate.
Q: What is personal property?
A: Examples of personal property include furniture & fixtures, machinery & equipment, office & electronic equipment, computer equipment, and rental equipment (this list is not inclusive).
Q: What are the reporting requirements?
A: Any business, unless specifically exempt, is required to file a personal property statement with the Assessor of each jurisdiction that they may have had personal property on December 31st of the prior year. When reporting your personal property, you must include the full acquisition cost new, in the year of acquisition, including applicable freight charges, installation costs and sales tax. If you purchased any assets used, you need to report the historical cost new if known. Report cost, not book value or your estimation of value. Also include fully depreciated assets. Provide documentation when necessary.
Q: What if I have leased equipment?
A: Generally, when you lease equipment the lessor (owner) is assessed for the equipment. Your responsibility as the lessee is to provide the information requested in the appropriate section of your personal property statement. Amounts reported for leased equipment should not be included elsewhere.
Q: When is the Personal Property Statement due?
A: The statutory due date for filing a personal property statement is February 20th of each year. If you had assessable personal property on December 31 of the preceding year, you are required to complete and submit a personal property statement on or before this die date.
Q: Where do I get a Personal Property Statement?
A: The Assessor sends the statements out the first part of January each year. They are sent to taxpayers believed to have personal property in their jurisdiction. If you do not receive a statement but have assessable personal property, you are still required to file. Forms are available at the assessor’s office or are available on line by accessing the Department of Treasury website at: www.michigan.gov/treasury.
Q: What happens if I do not file a Personal Property Statement by the due date?
A: If you do not file a personal property statement, the Assessor is required to make an assigned assessment of what he/she believe to be the value of your personal property. Non-filers jeopardize their right to appeal their assessment.
Q: How much will my tax bill be?
A: Assessment notices are mailed the beginning of March each year. The value listed will be the assessed value for the year. You can calculate your tax bill by dividing the assessed value by 1,000 and then multiplying that number by the millage rate. Ex: 10,000 Assessed Value/1,000=10*62 mills=$620.00.
Q: Are there any exemptions from a personal property assessment and tax?
A: There are exemptions available. Please access the Department of Treasury website for further information at: www.michigan.gov/treasury.
