The Northern Michigan Chamber Alliance is monitoring two separate aspects to the Personal Property Tax issue – reminding local small businesses to take advantage of available tax savings this year, and working to assure that Michigan voters approve a ballot issue this August to permanently enact the tax code changes.
Under the current PPT exemption, businesses that own, lease or possess commercial and industrial properties such as computers, machinery, office furniture, vehicles and related equipment with a market value up to $80,000 may eliminate their personal property tax bill starting this year. The receive the exemption, businesses must file MI Treasury Form 5076 with their local assessing offices. The deadline for filing the exemption form was Feb. 10.
However, for the 2014 tax year only, companies can still file the exemption form at their local March Board of Review sessions to earn the PPT waiver. Some local units will accept the exemption forms up to and through the Board of Review sessions. To link to the needed exemption form, click here.
These Personal Property Tax exemptions can add up to significant savings for small commercial businesses. For example, a company in the city of Traverse City with $50,000 worth of personal property would trim more than $330 from its city property tax bill by filing the exemption. Other northern Michigan businesses and organizations have seen savings from $200 to $2,000.
But local assessors report that scores of local businesses still haven’t filed for exemptions. Despite a steep influx of filings in recent weeks, various local assessors from around northern Michigan have noted there are hundreds of eligible businesses who have not taken advantage of the exemption.
Information on other Board of Review sessions is available by contacting you local tax assessor.
The Alliance has also had various meetings with the Michigan Manufacturers Association, the Michigan Chamber of Commerce, and other business organizations around the state to discuss the Aug. 5 ballot issue needed to make the changes to the Personal Property Tax permanent in state law. The Alliance is beginning the process to take an official stance in support of the PPT reform issue on the Aug. 5 primary ballot, which has the support of business, local government, and public safety organizations statewide.
Check back soon for an update on the ballot issue and pending state legislation to replace some of the local government revenue impacted by the PPT reductions.