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Documents used along the form
The Michigan Exemption form is an important document for small businesses seeking a property tax exemption. Alongside this form, several other documents may be necessary to ensure a smooth application process. Below is a list of these forms, each serving a specific purpose in the exemption process.
- Personal Property Statement (Form 632): This document provides a detailed account of all personal property owned by the business. It's typically required in years when the exemption is not claimed.
- Rescission Form: If a business no longer qualifies for the exemption, this form must be filed to officially rescind the exemption. It helps avoid penalties for failing to report changes.
- March Board of Review Application: If a late exemption claim is needed, this application allows businesses to present their case to the local board. It is essential for those who miss the initial filing deadline.
- Proof of Business Activity: Documentation that shows the nature of the business activity, such as sales records or invoices, may be requested to support the exemption claim.
- Tax Identification Number (TIN): This number is necessary for tax purposes and helps identify the business within the tax system. It is often required on various forms.
- Lease Agreements: If the business leases property, copies of lease agreements may be needed to clarify ownership and usage of personal property.
- Profit And Loss form: To understand your business's financial health and make informed decisions, Profit And Loss form is essential for summarizing revenues, costs, and expenses incurred during a specific period.
- Financial Statements: Recent financial statements may be requested to demonstrate that the total value of personal property is below the $80,000 threshold.
- Contact Information Sheet: A separate document listing contact details for the business owner and any authorized representatives can help streamline communication with local authorities.
- Local Unit of Government Correspondence: Any letters or communications from the local government regarding property assessments or previous exemptions may be useful for reference.
Gathering these documents can help ensure a successful exemption claim. It's always best to double-check requirements with the local unit of government to avoid any delays or complications in the process.
Michigan Exemption Preview
Michigan Department of Treasury 5076 (Rev.
Parcel Number
2023
Small Business Property Tax Exemption Claim Under MCL 211.9o
This form is to be filed with the local unit (City or Township) where the personal property is located. Please contact the local unit where the personal property is located for their mailing address. This form IS NOT to be mailed to the Michigan Department of Treasury or
Michigan State Tax Commission. This form must be filed no later than February 21, 2023 (postmark is acceptable). Late filed forms may be filed directly with the 2023 March Board of Review prior to the closure of the March Board.
This form must be filled out in it’s entirety. Failure to fill out the form completely can be cause for denial of the exemption. Taxpayers should pay particular attention to including contact information, including phone number and email address.
General Information
Business Name
Name and Mailing Address of Owner(s) or Partners (if sole proprietorship or partnership) - attach a separate sheet if necessary
Name of Local Unit of Government |
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County Where the Property is Located |
City:______________________ Township:______________________ Village:______________________ |
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Parcel Number |
Assumed Name(s) Used by Legal Entity (if any) |
Owner Telephone Number |
Date Business Began in Local Tax Collecting Unit
Description of Owner’s Business Activity
Name, Telephone Number and Email Address of the Person in Charge of Personal Property Records
Address Where Personal Property Records are Kept
Names of all other businesses having personal property, including any leasehold improvements assessed as personal property at the location(s) included in this form. (Attach additional sheets as necessary.)
List all addresses where any personal property owned by, leased to, or in the possession of the owner listed above or a related entity is located within the local tax collecting unit. (Attach additional sheets as necessary.)
Value of Personal Property
The True Cash Value of all Personal Property, as defined by MCL 211.9o, located within the local tax collecting unit indicated above, that is owned by, leased to, or in the possession of the owner or related entity, was less than $80,000 on December 31, 2022. (Enter value at right.)
Value of Personal Property
The True Cash Value of all Personal Property, as defined by MCL 211.9o, located within the local tax |
Value of Personal Property |
collecting unit indicated above, that is owned by, leased to, or in the possession of the owner or related |
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entity, was equal to or greater than $80,000 and less than $180,000 on December 31, 2022. (If checked, |
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attach a copy of Form 632, “2023 Personal Property Statement,” to this form. Enter value at right.) |
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The undersigned certifies that:
1.I am the owner of the commercial personal property and/or industrial personal property being claimed as exempt or I am the duly authorized agent.
2.The following procedures were used to determine that the True Cash Value of the Eligible Personal Property on December 31, 2022:
a)The determination of True Cash Value was based on the State Tax Commission’s recommended valuation procedures as set forth on Form 632
b)The determination of True Cash Value includes all assessable personal property, located within the city or township listed on this form that is owned by, leased to, or in the possession of the owner or related entity. This shall include all trade fixtures and may include leasehold improvements not assessed as real property. Attach an explanation if not all personal property is included.
3.I understand that according to MCL 211.9o, I am required to maintain and provide access to books and records for audit purposes as provided in section 22.
4.All of the information contained within Form 5076 is true and accurate and to the best of my knowledge and belief, and I acknowledge a fraudulent claim for exemption under MCL 211.9o is subject to the penalties as provided for in section 21(2).
Printed Name
Title
Signature
Date
LOCAL UNIT USE
Date Received
5076, Page 2
Instructions for Small Business Property Tax Exemption Claim Under
MCL 211.9o (Form 5076)
MCL 211.9o provides for a personal property tax exemption for “eligible personal property.” This is commonly referred to as the
Small Business Taxpayer Exemption. MCL 211.9o defines “eligible personal property” as meeting all of the following criteria:
•The personal property must be classified as industrial personal property or commercial personal property as defined in MCL 211.34c or would be classified as industrial personal property or commercial personal property if not exempt and
•The combined true cash value of all industrial personal property and commercial personal property owned by, leased by or in the possession of the owner or a related entity claiming the exemption is less than $180,000 in the local tax collecting unit and
•The property is not leased to or used by a person that previously owned the property or a person that, directly or indirectly controls, is controlled by, or under common control with the person that previously owned the property.
Personal Property Valued Less than $80,000
In order to claim an exemption for personal property valued less than $80,000, this form must be filed with the local unit (City or Township) where the personal property is located no later than February 21, 2023 (postmark is acceptable). This form IS NOT to be mailed to the Michigan Department of Treasury or the Michigan State Tax Commission. Please contact the local unit where the personal property is located for their mailing address. Late filed forms may be filed directly with the local unit March Board of Review prior to the closure of the March Board of Review. Taxpayers must contact the local unit directly to determine the March Board of Review dates.
Taxpayers must appear in person or have a representative appear on their behalf in order to late file with the March Board of Review.
Once the exemption is granted for personal property valued at less than $80,000, the taxpayer will continue to receive the exemption until they no longer qualify for the exemption. Once they no longer qualify, the taxpayer is required to file a rescission form and a personal property statement no later than February 20th of the year that the property is no longer eligible. Failure to file the rescission form will result in significant penalty and interest as prescribed in MCL 211.9o.
This form will exempt property owned only by the entity filing the form. If personal property is leased to or used by an entity other than the property’s owner, the owner of that personal property must file the form for that property, not the lessee or the user. The owner may file the form and claim the exemption only if the True Cash Value of all of the commercial or industrial personal property located within the local tax collecting unit that is owned by, leased to, or in the possession of the owner or a related entity was less than $80,000 on December 31, 2022.
This form must be filled out in it’s entirety. Failure to fill out the form completely can be cause for denial of the exemption. Taxpayers should pay particular attention to including contact information, including phone number and email address.
Once an exemption is granted for personal property valued at less than $80,000, taxpayers are not required to file a “Personal Property Statement” (Form 632) in the year they are claiming the exemption.
Personal Property Valued Greater than or Equal to $80,000 but Less than $180,000
In order to claim an exemption for personal property valued at $80,000 or more but less than $180,000, this form along Form 632 Personal Property Statement must be filed ANNUALLY with the local unit (City or Township) where the personal property is located no later than February 20 of each year (postmark is acceptable). If February 20 is a Saturday, Sunday, or legal holiday, this form and accompanying personal property statement must be filed the next day that is not a Saturday, Sunday, or legal holiday of that year. This form IS NOT to be mailed to the Michigan Department of Treasury or the Michigan State Tax Commission. Please contact the local unit where the personal property is located for their mailing address. Late filed forms may be filed directly with the local unit March Board of Review prior to the closure of the March Board of Review. Taxpayers must contact the local unit directly to determine the March Board of Review dates.
NOTICE: Questions regarding this form should be directed to the assessor of the city or township where the personal property is located. This form is issued under the authority of Public Act 206 of 1893. Additional detailed information on the Small Business Taxpayer Personal Property Exemption can be found on the State Tax Commission website at www.michigan.gov/ statetaxcommission.
Similar forms
The Michigan Exemption form (Form 5076) shares similarities with several other important documents related to property tax exemptions and claims. Each of these documents serves a unique purpose but often overlaps in terms of the information required and the processes involved. Below is a list of seven documents that are similar to the Michigan Exemption form:
- Personal Property Statement (Form 632): This form is used to report the value of personal property owned by a business. Like the Michigan Exemption form, it requires detailed information about the property and its value but is typically filed when claiming the full value of personal property rather than an exemption.
- Property Tax Exemption Application (Form 5175): This application is for claiming exemptions on property taxes for various types of property, including charitable organizations. Both forms require information about the property and the owner, although the criteria for exemption may differ.
- Commercial Property Tax Exemption Application: This document is used by commercial property owners seeking tax exemptions. Similar to the Michigan Exemption form, it involves a declaration of property value and eligibility criteria.
- Industrial Property Tax Exemption Application: Designed for industrial properties, this application shares the same focus on property classification and value assessment as the Michigan Exemption form, but it targets a specific category of property.
- Taxpayer’s Affidavit for Property Tax Exemption: This affidavit is a sworn statement used to support claims for property tax exemptions. Like the Michigan Exemption form, it emphasizes the accuracy of the information provided and may require similar supporting documentation.
- Affidavit of Gift Form: When documenting the transfer of gifts, utilize our essential Affidavit of Gift form resources to ensure compliance and legal recognition of the transaction.
- Claim for Principal Residence Exemption (Form 4988): This form is used by homeowners to claim a principal residence exemption. While it focuses on residential property, it requires similar information regarding ownership and property value.
- Request for Reinstatement of Property Tax Exemption: This document is filed when a previously granted exemption is being reinstated. It shares similarities with the Michigan Exemption form in terms of the need to demonstrate ongoing eligibility and provide supporting details.
Each of these documents plays a vital role in the property tax exemption landscape. They require careful attention to detail and adherence to deadlines, much like the Michigan Exemption form. Understanding their similarities can help taxpayers navigate the complexities of property tax claims more effectively.
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Misconceptions
Understanding the Michigan Exemption form can be tricky, and several misconceptions often arise. Here are four common misunderstandings:
- Misconception 1: The form should be sent to the Michigan Department of Treasury.
- Misconception 2: Filing the form late is impossible.
- Misconception 3: All personal property qualifies for the exemption.
- Misconception 4: Taxpayers must file a Personal Property Statement every year.
This is incorrect. The Michigan Exemption form must be filed with the local unit (City or Township) where the personal property is located. It should not be mailed to the Michigan Department of Treasury or the Michigan State Tax Commission.
While there is a deadline for filing, late forms can still be submitted directly to the March Board of Review before it closes. Taxpayers need to appear in person or have a representative present to file late.
Not all personal property is eligible. To qualify, the combined true cash value of the personal property must be less than $80,000. Additionally, the property cannot be leased to or used by a person who previously owned it.
This is not true for those claiming the exemption. Taxpayers who file Form 5076 are not required to submit a Personal Property Statement (Form 632) in the year they are claiming the exemption.
Detailed Instructions for Using Michigan Exemption
Once you have gathered all necessary information, you can proceed to fill out the Michigan Exemption form. Ensure that you complete the form accurately and submit it to the correct local unit. Missing information can lead to denial of your exemption claim.
- Obtain the Michigan Exemption form (Form 5076) from the Michigan Department of Treasury or your local unit.
- Fill in the Business Name at the top of the form.
- Provide the Name and Mailing Address of Owner(s) or Partners. If necessary, attach a separate sheet.
- Indicate the Name of Local Unit of Government where the property is located.
- Fill in the County where the property is located.
- Complete the City, Township, and Village fields as applicable.
- Enter the Parcel Number associated with the property.
- List any Assumed Name(s) used by the legal entity, if applicable.
- Provide the Owner Telephone Number.
- State the Date Business Began in the local tax collecting unit.
- Describe the Owner’s Business Activity.
- Fill in the Name, Telephone Number, and Email Address of the person in charge of personal property records.
- Provide the Address Where Personal Property Records are Kept.
- List the Names of all other businesses having personal property at the location(s) included in this form. Attach additional sheets if necessary.
- Detail all Addresses where any personal property owned, leased, or in possession of the owner or a related entity is located within the local tax collecting unit. Attach additional sheets if necessary.
- Certify that you are the owner or authorized agent by signing the form.
- Provide your Printed Name, Title, and Date.
- Submit the completed form to the local unit (City or Township) where the personal property is located by the deadline of February 22, 2022.
Dos and Don'ts
Things to Do:
- File the form with the local unit (City or Township) where the personal property is located.
- Ensure all sections of the form are completed fully to avoid denial of the exemption.
- Include accurate contact information, such as phone number and email address.
- Submit the form by February 22, 2022, ensuring it is postmarked by this date.
Things Not to Do:
- Do not mail the form to the Michigan Department of Treasury or Michigan State Tax Commission.
- Avoid submitting incomplete forms, as this can lead to denial of the exemption.
- Do not forget to keep records accessible for audit purposes as required.
- Do not assume that late filed forms will be accepted without following the proper procedures.