Michigan Personal Property Tax Reform
Michigan is phasing out its Personal Property Tax (PPT) for most businesses, beginning last year. It will substantially reduce compliance and administrative costs for businesses.
This is especially pertinent for manufacturers who rely on capital investments in tools and other equipment.
Eligible Manufacturing Personal Property (EMPP) could include both commercial and personal property, and industrial personal property. It refers to all personal property located on real property where it is used more than 50% of the time in industrial processing or in supporting industrial processes.
If commercial or industrial personal property owned or under control of a business within a city or township is worth a total of $80,000 or less, the personal property is 100% exempt, beginning in 2014.
Businesses claiming the eligible manufacturing PPT exemption will be subject to a statewide special assessment to fund essential services levied by local governments. The Statewide Essential Services Agreement (SESA) will be levied on all exempt EMPP, starting in 2016.
To read the entire article, please visit www.michiganbusiness.org.