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Personal Property Info

City of Ferndale Business Persons’ Guide to:
Personal Property Assessments and Taxes

Click here to download form L-4175 from the state tax commission website.

What is Personal Property?

Personal Property is the tangible (physical) assets of a business. Personal Property should not be confused with real estate property.

What are Some Examples of Personal Property?

Personal Property consists of moveable items like: furniture, fixtures, machinery, office and computer equipment and sign boards etc.

Where and How Often Do I Have to File a Personal Property Statement?

Personal Property statements are filed each year with the local jurisdiction where the personal property was located in on December 31st. Of preceding year. Personal property is valued at market (true-cash) value and assessed at 50% of True-Cash Value. Personal Property statements are mailed the first week of January and must be completed, signed and returned by February 1. If a personal property statement is not returned by the February 20th deadline, by law, the Assessor is required to estimate an assessed value.

Who Says I Have to File a Personal Property Statement?

The Michigan Constitution provides for assessment of all real and personal property not exempted by law.

What Type of Information Do I include on the Personal Property Statement?

The total original installed costs for each item of personal property by the year of purchase. Each word in this statement is important.

What About Used Equipment?

If an item was purchased used, you must report the original cost of the item in the year it was purchased AS NEW. Do not report the cost you paid for the item as used. (You may have to contact the seller for original cost information).

If you have personal property that has been fully expensed or depreciated for Income Tax or Financial Reporting purposes, the original cost and the year purchased MUST be reported on your personal property statement. When you sell or get rid of an item of personal property, the original cost of that item should be taken out from figures included on your statement when you file the following year.

Do I Report Equipment That I Am Leasing?

Yes. This equipment should be reported on Section J of your personal property statement. Be sure to include the type of equipment, leasing company name and mailing address. The leasing company may be responsible for payment of the personal property taxes. Please provide all information required on the form as we have to match your reporting with the Leasing Company reports. Incomplete reporting could result in double assessments.

I Lease Space My Business Occupies. Do I Have to Pay a Personal Property Tax?

Yes. Personal Property is a tax on the moveable (tangible) assets of the business, not the structure or building itself. Therefore, the owner of the business, not the owner of the building, is assessed a personal property tax.

I Operate a Business out of My Home. Do I Have to Pay a Personal Property Tax?

Yes. Regardless of where the business is located, if a business is situated within City of Ferndale, it is subject to a personal property tax.

Where Does the Tax Money Collected Go?

When you receive your personal property tax bill, it will have itemized amounts as to where the tax money is distributed. In City of Ferndale, those entities would be: City of Ferndale, Ferndale or Hazel Park Schools, Oakland Intermediate Schools and Community College, Oakland County, State Education, etc., etc. Personal property tax money goes to the same entities as real property tax. The tax rate used to calculate the amount of tax is the non-homestead tax rate.

What if I Want to Appeal My Assessed Value on My Personal Property?

If you disagree with your assessment, please contact the Assessor's Office. If needed you may appeal to the Board of Review in March and further to the Michigan Tax Tribunal. However, in order to file to the Michigan Tax Tribunal, you must have filed your personal property tax statement and you must have appealed to the Board of Review.

What are My Responsibilities as a Business Owner?

You must notify your local Assessor's Office when your business moves into or out of the City of Ferndale. Also, if you anticipate purchasing a personal property of a business, make sure that the seller has paid the personal property taxes. The tax bills may be in the name of the old business, but the tax lien stays on the personal property until paid. Therefore, the personal property may be seized to pay delinquent personal property taxes even though you may be the new business owner.

What Happens if my Business Moves Out of the City of Ferndale During the Year?

Personal property taxes would be due to the City where the business was on the last day of previous year and not the place your business re-locates to in the following year. Your business cannot be assessed a personal property tax by two jurisdictions in the same time.

What Happens if Personal Property Taxes Become Delinquent?

The non-payment of personal property taxes could result in seizure of the personal property. If you have a dispute, pay the taxes and pursue action to show why reimbursement should be made. Once the opportunity to appeal with the Board of Review has passed and a tax bill has been issued, the assessment and tax 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.

Access Oakland

This is a service that provides access to public records online for a fee.  Click here to visit that website.

A Summary of Personal Property Tax Calendar

January
Personal Property Statement Forms are mailed

February
The statement should be completed, signed and returned by February 1. If the statement is not received by the deadline 20th February, by law the Assessor is required to estimate an assessed value.

Upon receipt of the completed statement, an assessed value will be calculated utilizing State Tax Commission approved multipliers.

March
A Notice of Assessment is mailed. This notice indicates current year's and previous years' assessed values and dates & times of the Board of Review.

Board of Review is held.

July
Summer tax bills are mailed. The Tax bills are due by the end of July. Eight monthly payments available for Real Property Taxes are not available for Personal Property Taxes. Late payments are assessed interest @ 9.00 % per annum.

December
Winter tax bills are mailed.

February
Statements for next year assessment cycle are due by February 1, you can drag it to February 20th. Dragging does not help anyone involved with the process.

Winter taxes on personal property are due to be paid by February 14, late payments are assessed interest and penalty. Detailed information is available on the tax statements.

 

 

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The City of Ferndale, Michigan
300 East Nine Mile Road
Ferndale, Michigan  48220
(248) 546-2525
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This page last modified 04/30/12 .
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