State & local tax alert: Michigan personal property taxes

Public Acts 261 through 264 of 2017 were signed into law on Dec. 28, 2017. These acts marked significant filing changes for Michigan’s personal property tax reporting, including the small business taxpayer exemption and the eligible manufacturing personal property (EMPP) exemption, effective for property tax year 2018.

The deadline for filing the Small Business Property Tax Exemption Claim (Form 5076) has been moved to February 20 from the prior due date of February 10. If February 20 of a year is a Saturday, Sunday, or legal holiday, the deadline for that year is the next nonrestricted day. In addition, electronic signatures will now be accepted due to the form changing from an affidavit to a statement. While the State Tax Commission previously considered Form 5076 timely filed by delivery to the assessor or, if mailing, based on the U.S. postmark date if on or before the due date, the legislation clarifies that timely filing includes the U.S. Postal Service postmark date if mailed on or before the February 20 deadline.

The due date for the Affidavit and Statement for Eligible Manufacturing Personal Property (Form 5278) and for the general Personal Property Statement (Form 632) remains February 20. However, similar to the filing of Form 5076, the legislation allows for Form 5278 and Form 632 to be considered “delivered” to the assessor if the U.S. Postal Service is postmarked by February 20. Prior to this change, Form 5278 and Form 632 were required to be in the possession of the assessor on or before the due date to be considered timely filed. The same rule as for Form 5076 in regards to a due date falling on a weekend or legal holiday applies to Form 5278 and Form 632.

The legislation also provides possible relief for taxpayers filing late applications for both the EMPP exemption and the small business taxpayer exemption. Taxpayers who miss the filing deadline may file a late application with the March Board of Review, which has been granted the authority to accept the late filing and grant the exemption if the taxpayer meets all qualifications for the exemption.