Many small businesses have a new tax break this year – but the deadline to apply for it is fast approaching.
Small businesses that own less than $80,000 in personal property can get the property exempted from taxation, as long as the business owner files an affidavit by Feb. 10.
Matt Woolford is director of the Kent County Bureau of Equalization.
He says the tax exemption has to be applied for every year, and in a timely manner.
"You need to consult with your accountant, and especially your local assessor," says Woolford, "because the local assessor will be able to guide you through process of filing either your personal property statement or your affidavit or both."
This year only, business owners who miss the deadline can petition the March Board of Review to get the exemption, but Woolford says it's a lot simpler to just file the form in time.
The law prohibits business owners from dividing up their property among different entities in order to fall under the threshold.
Woolford says about 80% of small business owners in Michigan could quality for the exemption.
Here's a link to the form:
http://www.michigan.gov/documents/treasury/5076_439273_7.pdf
