Notice of Denial of Eligible Personal Property Exemption

If a taxpayer filed an affidavit requesting exemption from the local personal property tax under the new small business exemption and received a notice denying the request for exemption, the taxpayer has the following options:

  • File a personal property tax statement for the parcel that an exemption was requested by February 20 with the local assessor showing the True Cash Value of the assets in that jurisdiction and pay the tax; and/or
  • Contact the assessor to see if they will provide information regarding the denial and appeal the decision to the March Board of Review for the local jurisdiction. The appeal to the March Board of Review should include the following: Documents supporting that the True Cash Value of all the personal property owned by, leased to, or in the possession of the owner or a related entity is below $80,000. This could include previously filed Personal Property Tax statements, fixed asset listing, detailed financial statements, federal tax returns and any other information to support your position that the True Cash Value does not exceed $80,000. This information should be attached to the Petition for the Board of Review (L -4035) and must be in the hands of the assessor by 5PM March 20, 2014. Faxed or emailed forms will not be accepted.

If the information and Petition are submitted early it may give the assessors time to review the information prior to the Board of Review and possibly limit any further action on the taxpayer’s part.  Attendance at the Board of Review is recommended and the proceedings are typically very short.  If the taxpayer loses the appeal at the Board of Review, they do have the option to appeal to the Michigan Tax Tribunal.

The potential savings from this exemption will vary based on each taxpayer’s facts. However, the savings in general will be fairly minimal. Most small businesses that qualify for the exemption save roughly $1,700 or less. Appealing to the Michigan Tax Tribunal may not result in much, if any, savings after all costs are considered.

Contact David Barrons, Tax Partner, at 616.235.5200 to learn more.