November 28, 2023

Personal Property Tax Update: Michigan Bulletin 18

State and Local Tax

Personal Property Tax


Minutes to read

The Michigan State Tax Commission issued Bulletin 18 before the Thanksgiving holiday to address some procedural changes for the upcoming 2024 property tax assessment year.

What Changed?

Property Classification (Section D): Property classification will be determined annually and should be based on the property's current use (not the highest and best use).

Qualified Heavy Equipment Rental Personal Property Exemption (QHERPP) (Section H): There will be an optional exemption from business personal property tax for qualified heavy equipment, which may be replaced by a heavy equipment rental tax.

Small Business Taxpayer Personal Property Tax Exemption (Section I): Beginning in 2023, this exemption amount increased from $80,000 to $180,000.

Omitted or Incorrectly Reported Property (Section K): The state will ask the assessor for more proof of these requested changes. Businesses should be prepared with proof of any omitted or incorrectly reported assets for which they’re requesting a change.

When Does This Change Go into Effect?

The bulletin provides procedural changes and reminders effective for the 2024 property assessment year. However, more specific dates around these changes include:

  • The Qualified Heavy Equipment Rental Personal Property Exemption (QHERPP) is effective December 31, 2023.
  • The Small Business Taxpayer Personal Property Tax Exemption must be claimed with the local unit by February 20, 2024.

Who Does This Affect?

Michigan Bulletin 18 was addressed directly to local assessing officers and county equalization directors. However, owners of real estate and tangible personal property in Michigan must be familiar with all the changes, as they will be affected the most.

What Does This Mean?

Property owners in Michigan will need to be aware of these changes so they can appropriately file their business personal property returns, claim the applicable exemptions by the filing deadlines, and ensure their property is being accurately and fairly assessed.

Talk to our experts about your Michigan property to ensure proper filing and assessment.

Megan Lusby
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