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MI Small Business Personal property tax

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daisy1

Active member
Can anyone in MI tell me that who is in a leased building or who is renting a spot for their business, do you receive a property tax bill & how is it listed or worded.

I do know that Mi did pass the small business tax exempt if your personal property is valued under $80k. I know I fall in this, but my property tax bills coming from the township have listed on them are things such as police mileage, airport millage, mta millage so and & so forth, its sounds & looks like to me that I have been paying the actual property taxes at the plaza Im renting, shouldnt this be my landlords responsibility
or how should my tax bill read for personal property
 
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It depends on what your lease says. Most leases today are what are call “triple net” leases (often referred to in description as NNN) where the tenant pays the pro-rata share of the property tax (and insurance and common area maintenance) based on square footage. In other words, if you have 1000 square feet of a 5000 square foot building (20%), you are going to pay 20% of the property tax for that building.

If your lease is NOT a NNN lease and does not state that property taxes are a pass through expense, this is not the case.

What does your lease say?
 
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did your township send you your assessors note with the affidavit attached to it? My accountant said to just fill out the affidavit and send it in. The assessor can disallow your exception if they believe you have more than 80k in assets but it is highly likely that you are exempt. I was able to get exemption last year and expect to get it this year also.
 
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I did get the form to fill out, but that still dont account for why my papers have miliage wording and figures looking like a realestate property tax, these are taxes i have not pd for from 2013
 
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I have no knowledge of Michigan taxes but here in Florida we pay “tangible” property taxes as businesses. The taxable value is the cumulative total value of the tangible assets of your business(equipment). I think there may be an amount exempted but I’m not sure what value that amount is. The amount of assets over the exempted amount is subject to the local millage rate.
 
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In most places there is property tax on the building which is billed by the taxing authority to the landlord. It the lease with that landlord calls for the tenant to pay this tax, that amount is passed through to the tenant. This is what I was talking about in my first post.

In re-reading your post I see that may not be what you are talking about. In most places there is also some form of a business personal property tax. This tax is billed to the business and is based on the tangible assets of the business as described by Paul. At least in Colorado, that property depreciates and the amount of the tax goes down over time. When you replace a piece of equipment, you are supposed to take the old item off the schedule and replace it with a the new one. This is not the landlord’s responsibility.

I have no idea what the property tax rates in Michigan are, but for my restaurant, the property tax on the building is about $3500 per year and the property tax on the business personal property is a few hundred dollars.

Look here: http://www.michigan.gov/taxes/0,1607,7-238-43535—,00.html
 
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bodegahwy said:
In most places there is property tax on the building which is billed by the taxing authority to the landlord. It the lease with that landlord calls for the tenant to pay this tax, that amount is passed through to the tenant. This is what I was talking about in my first post.

In re-reading your post I see that may not be what you are talking about. In most places there is also some form of a business personal property tax. This tax is billed to the business and is based on the tangible assets of the business as described by Paul. At least in Colorado, that property depreciates and the amount of the tax goes down over time. When you replace a piece of equipment, you are supposed to take the old item off the schedule and replace it with a the new one. This is not the landlord’s responsibility.

I have no idea what the property tax rates in Michigan are, but for my restaurant, the property tax on the building is about $3500 per year and the property tax on the business personal property is a few hundred dollars.

Look here: http://www.michigan.gov/taxes/0,1607,7-238-43535—,00.html
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I understand what your saying thats the same as Mi, assests amount depreciate over time, just trying to figure it all out, Im going to the twp hall next week to talk to supervisor, just trying to figure why the wording on break down of milliage shows such as police, mta, airport, library and such are on bill, instead of just stating like personal equipment
 
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My guess is that those are various taxing entities that levy a property tax. Each has its own tax rate that add up to your total business personal property tax.
 
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