Important PPT Filing Deadlines-Actions in 2015 Relating To New PPT Exemptions
For the personal property tax exemptions led by MMA and supported by voters in the passage of Proposal 1 in August of 2014, deadlines soon will arrive. This memo is to briefly alert you to these deadlines and highlight a few key points.
Last year was the first year for taxpayers to obtain a Michigan property tax exemption if the value of their personal property in a jurisdiction was less than $80,000 (taking into account property owned by related entities). As last year, this year’s exemption must be claimed by providing the assessor with the Department of Treasury’s Affidavit Form 5076 (http://www.michigan.gov/documents/treasury/5076_439273_7.pdf) by February 10, 2015.
The MMA-supported legislation exempting Eligible Manufacturing Personal Property (“EMPP”) from property taxation also requires action in February 2015 – even though the exemption is phased in beginning in 2016.i On their 2015 personal property statements, taxpayers should disclose their intent to utilize the EMPP.
The State Tax Commission (STC)-approved 2015 personal property statement form L-4175 (available on the Department of Treasury’s website at: http://www.michigan.gov/documents/treasury/632fillable2015_471934_7.pdf) includes the following clause to implement the EMPP exemption:
The STC recently adopted the referenced Form 5201 at its December 16, 2014, meeting. Form 5201 is now available on the Department of Treasury’s website (http://www.michigan.gov/documents/treasury/5201_477044_7.pdf.)
As with any major statutory change, there will be some nuances in claiming the new exemptions. For example, if more than 50% of the personal property on a single or contiguous group of occupied real property parcels is EMPP, then all of the personal property is deemed EMPP. You may then select “All,” on the Summary and Certification shown above, and not fill out Form 5201.
Special thanks go out to Richard A. Barr, Mark A. Hilpert, Stewart L. Mandell and Steven P. Schneider, of the law firm of Honigman Miller Schwartz and Cohn LLP, who have assisted us with the nuts, bolts, and fine points of the new law, both by presenting at our December webinar, Planning for Your Personal Property Tax Exemption, and by supporting the drafting of this memo.
i To implement the EMPP exemption, the statute requiring personal property statements to be filed by February 20, was amended to require that 2015 personal property statements “include a schedule of when any personal property included in the statement will become eligible for exemption under section 9m [qualified new personal property] and 9n [qualified previously existing personal property].” MCL 211.19(9).