This change updates the combined true cash threshold to claim the exemption. Up to $180,000…with additional requirements for claiming the exemption. PLEASE NOTE: if filing a Small Business Exemption form 5076 form and the true cash value falls between $80,000 and $180,000 as outlined in the additional information below, a Personal Property Statement form 632 L-4125 MUST be filed ALONG with Form 5076. BOTH FORMS MUST BE FILED!
ADDITIONAL INFORMATION BELOW:
Determining Eligibility MCL 211.9o provides that eligible personal property, for which an exemption has been properly claimed is exempt from the collection of taxes under the General Property Tax Act. Eligible personal property is defined as personal property that meets all the following conditions:
1. 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
2. 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
3. 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.
Key in this definition to determine eligibility is the second clause that indicates the combined true cash value of all the personal property owned by, leased by, or in the possession of an owner or of a related entity must be less than $180,000 in that local tax collecting unit. 6 Determination of eligibility for this exemption is different from determination of tax liability. Determination of eligibility for the exemption includes items, such as leased personal property, which would not be used in the determination of tax liability. It is possible that a taxpayer may have under $180,000 true cash value for determination of tax liability and not be eligible for the exemption because of items they may lease or have in their possession but do not own.