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personal property tax

Many states assess a personal property tax on certain items of personal property such as motor vehicles, boats, and aircraft. Business personal property taxes—taxes on tangible personal property items that are used to produce income—are often referred to as ad valorem taxes.

In Michigan, personal property tax is primarily levied on property used by businesses rather than on personal items such as cars, boats, or aircraft, which are subject to different forms of taxation. Business personal property, particularly equipment and machinery used in conducting business, is subject to the state's ad valorem tax, which means the tax is based on the assessed value of the property. Michigan has undergone significant changes in its personal property tax laws in recent years, particularly with the introduction of the Small Business Taxpayer Exemption and the Eligible Manufacturing Personal Property (EMPP) exemption. These exemptions were designed to reduce the tax burden on small businesses and manufacturers, allowing for a full or partial exemption from personal property tax for eligible businesses. To benefit from these exemptions, businesses must file the requisite forms with their local tax assessor's office. It's important for business owners to stay informed about their tax obligations and any filing deadlines to ensure compliance with Michigan's tax regulations.

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Taxes

personal property tax

Individual & Family Legal Plan

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Michigan State Code

Taxes

personal property tax

Michigan State Code

Articles