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Second Chance for Manufacturers to File Personal Property Tax Exemptions

Gov. Rick Snyder recently signed legislation that gives Michigan manufacturers a second chance to file (or re-file—if denied) their annual personal property tax (PPT) exemptions. Manufacturers now have until May 31 to file their exemptions with their local assessing office.

Under the changes to Michigan’s PPT laws approved by voters in 2014, manufacturers can potentially save thousands of dollars by submitting their Form 5278 to their local assessors. Unfortunately, however, many manufacturers missed the original February deadline or filed exemption forms that were deemed incomplete for various administrative reasons due to difficulties with the new filing process.

The recent package of bills, which comes in response to confusion and criticism from manufacturers when filing their exemptions earlier this year, is designed to clarify the process for filing PPT exemptions. The legislation simplifies the PPT exemption policy and improves certain PPT definitions, making it easier for businesses with eligible manufacturing personal property to comply with the PPT reforms passed in 2014.

If your manufacturing business missed out on filing its 2016 PPT exemption or had it rejected as incomplete, you can take advantage of this one-time filing extension by submitting or re-submitting your Form 5278. Remember, your local assessor must receive exemption affidavits no later than May 31, 2016. Postmarks are not accepted.

If you have questions or would like to learn more about this one-time opportunity, feel free to contact the tax-savy attorneys at Dingeman & Dancer, PLC.