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II. Personal Property
A. Tax Day
B. Statement of Personal Property
C. Returning the Form
D. Contesting the Assessment
E. Jepardy Assessment
III. Opening a Business
A. Buying a Business
B.
Opening a Business
C. Going out of Business
D. Leasing Equipment
IV. Delinquent Personal Property Tax
A. Property Seizure
B. Posting of Notice
C. Sale of Property
BUSINESS PERSON'S GUIDE TO PERSONAL PROPERTY TAXES
A Guide for Business People:
The purpose of this information is to familiarize business owners with the Personal Property Tax. We will attempt to explain the functions of the Township Treasurer's and Assessor's Office in the administration of the tax.
Personal property includes furniture, fixtures, machinery and equipment used in the operation of a business. Typical items are desks, chairs, computers, cash registers, racks, beds, televisions, tools, cabinets, etc. If you have any questions whether the property qualifies for the tax, contact the Assessor's Office.
The Township Assessor places a value on your personal property as of Tax Day. Under Michigan Law, Tax Day is December 31 of each year. Property is valued at market value and assessed at 50% thereof. Personal Property is assessed in the Taxing Jurisdiction in which it is located on Tax Day. If the owner of the personal property is not known, it will be assessed to the business in possession.
B. STATEMENT OF PERSONAL PROPERTY
The Township Assessor mails out personal property statements in December of each year. Under State Law, statements are to be filed with the Assessor declaring all personal property. The statements are utilized by the Assessor in valuing your personal property. Should you not receive a statement by early January, please contact the Assessor's Office at (517) 694-1502.
It is imperative that you return the completed statement in a timely fashion. Statements are due by February 1, of each year. If you do not return this statement, the Assessor is obligated, by law, to estimate the assessment based on available information. Do not assume that because you are out of business the Assessor will not assess the personal property. Remember, estimated assessments are valid.
An assessment may be contested if you feel it is inaccurate. If you disagree with your assessment, please contact the Assessor's Office. If needed, you may appeal to the local Board of Review and further to the Michigan Tax Tribunal. However, to file with the Tribunal, you must have filed your personal property tax statement and must appeal to the local Board of Review. Contact the Assessor's Office at (517) 694-1502 for further details regarding this process.
When the Township Treasurer becomes aware of a business closing, selling, transferring or downsizing, of if the previous year's personal property tax is delinquent, the Treasurer may levy what is called a "Jeopardy Assessment". Under this procedure, both the July, if applicable, and the December Tax bills will be issued in advance to insure collection of the tax. Non-payment of a jeopardy assessment or prior year's bills may result in seizure or lawsuit.
The following are helpful hints for those who are about to embark on:
1. Make sure that the seller has paid the personal property taxes.
2. Be aware! If you buy after December 31, the tax bills for the following Year may be in the name of the old business, but the tax lien on the property remains. Therefore, the property may be seized to pay delinquent personal property taxes even though you may be the new property owner. Make sure you contact the Assessor's Office to make the necessary name changes.
3. Call the Treasurer's Office to find out what personal property taxes are outstanding.
Please contact the Township Assessor's Office to notify them that you are in business within the Township and for information concerning personal property.
1. Contact Assessor at (517) 694-1502
2. Contact Treasurer at (517) 694-0333
Leased equipment should be reported on the personal property statement.
IV. DELINQUENT PERSONAL PROPERTY TAXES
If you owe delinquent personal property taxes, contact the Township Treasurer. The non-payment of these taxes may result in the seizure of the property.
If you have a dispute, pay the taxes and pursue action to show why the reimbursement should be made.
But, once the opportunity to appeal with the Board of Review has passed and a bill has been issued, the assessment and the bill are both valid and the tax is not refundable.
The Treasurer is authorized to seize and sell personal property of a business if personal property taxes remain unpaid. Monthly statements serve as formal notice that the tax is outstanding. A jeopardy assessment for future taxes, based on the Tax Day assessment, can be levied if these are not paid.
Once seized, the personal property of the business is tagged, or removed from the property.
All property seized will fall under the control of the Township Treasurer.
If unpaid personal property taxes remain after six (6) days of seizure, the Treasurer may sell the property in accordance with State Law.
NOTE: As the owner of a business, you can benefit greatly from understanding Personal Property Taxes and how they affect your business. This posting is intended to provide you with information you may need to meet the requirements of the law.
If you have further questions, please contact the Delhi Township Assessor's office at
(517) 694-1502 or the Treasurer's Office at (517) 694-0333.