Personal Property Taxes - Frequently Asked Questions

The Michigan Constitution provides for the assessment of all real and personal property not specifically exempted by law. Real property is made up of the land and buildings we typically think of as real estate. Personal Property can be defined as the tangible or physical assets of a business that are not part of the real estate.

What are some examples of Personal Property?

Personal property consists of items such as furniture, fixtures, machinery, equipment, office equipment, computer equipment, signs and in some cases leasehold improvements. You should contact the Assessing Department if you have any questions on whether an item qualifies as personal property.

Where do I report my business Personal Property?

A Personal Property Statements is mailed annually to each business or owner of personal property during the first week of January by all local assessing jurisdictions. This form must be completed and filed with the local jurisdiction where the personal property was located on December 31st, of the previous year. The filing of Property Statements is mandatory. If the Assessor does not receive a personal property statement by the February 20 th deadline, by law, the Assessor is required to estimate an assessed value.

What if I have Personal Property in more than one jurisdiction?

Business personal property assets are required to be reported to the assessment jurisdiction where they are located on December 31st. If a business has more than one physical location, they are required to a Personal Property Statements with every assessment jurisdiction where they had personal property assets.

How is Personal Property purchased used reported?

Personal Property is assessed at 50% of market (true cash) value. You must report the original cost of the item in the year it was purchased new. If you purchased used equipment, you may have to contact the previous owner to find what they paid for the item when it was new. Do not report the cost you paid for the item as used.

Do I report assets fully depreciated under the Internal Revenue Code?

If you have personal property that has been fully depreciated under the Internal Revenue Code or your financial accounting practices, the cost when new MUST still be reported on your personal property statement. When you sell or dispose of an item, the cost when new should be removed from the personal property statement in the following year.

Do I report assets expensed under Section 179 of the Internal Revenue Code?

Yes, all assets must be reported even if the asset was expensed under Section 179 of the Internal Revenue Code or under your accounting policies. All costs reported must include freight, sales tax and installation.

If I lease equipment, how do I report it?

Leased equipment should be reported under Section J on the Personal Property Statement. Be sure to include the type of equipment, the leasing company name and address and the cost new if you had purchased it. Delta Township will verify that a Personal Property Statement has been mailed to that leasing company to report their assets.

What are "Move-Ins"?

"Move-Ins" are items of personal property that were not assessed in Delta Township in the previous year. This includes acquisitions of previously used property, used personal property you have moved in from a location outside of Delta Township , personal property that was exempt in the previous year and personal property that you mistakenly omitted from your statement in the previous year. Move-ins do NOT include property that you moved from another location within Delta Township .

I lease the space my business occupies. Am I still required to file a Personal Property Statement?

Yes. The Personal Property tax is on the physical (tangible) assets of the business, not the on the structure or building. Therefore the personal property tax is assessed to the business owner not the owner of the real estate.

I operate a business out of my home. Am I required to file a Personal Property Statement?

Yes. Any business, regardless of their location is subject to the personal property assessment and taxes. If you are the sole proprietor of the business, and live within the township, you may qualify for a partial exemption of the personal property tax.

What if I do not agree with the assessment?

We encourage business owners to first contact the Assessor's office and speak with a representative to discuss any reasons you feel that the assessment is incorrect. If you are not satisfied after this discussion, the assessment may be appealed to the March Board of Review. If you are still not satisfied, you may further appeal it with the Michigan Tax Tribunal. In order to file an appeal with the Michigan Tax Tribunal, you must first appeal it to the March Board of Review and you must have filed your personal property statement with the Assessor.

What if I close or move my business from Delta Township ?

December 31 is tax day in the State of Michigan . Personal Property is assessed based on its location on that day. If a business moves out of the township any time after that date, the business owner is still responsible for the full year's taxes. If you purchase a business during the year, please make sure the personal property taxes are paid. Any delinquent taxes due from a previous owner remain a lien on the personal property even though you have purchased those assets.

When are my Personal Property taxes due?

The personal property taxes are due at the same time the real property taxes are due and are computed from the same "non-homestead" tax rates paid by real property. The summer tax bill is payable from July 1st through September 14th. The winter tax bill is payable from December 1st through the following February 14 th . If those dates fall during the weekend or on a holiday, the tax bill would be due on the first business day following those dates.

What if Personal Property taxes become delinquent?

Unpaid personal property taxes become delinquent on March 1st of each year. The Treasurer is authorized by Michigan law to seize and sell the personal property of a business in order to satisfy the personal property tax lien.

What are my responsibilities as a business owner?

If you open a business in Delta Township , please notify the Assessing Department to ensure that you will receive a personal property statement in January. If you move, change locations, or want a correction to the mailing address, please give the Delta Township Assessing Department a call at (517) 323-8520.