Important News for Business Owners

There have been several changes made concerning the taxation of personal property. Beginning December 31, 2013, some personal property will be exempt from taxation.

 In order to be eligible personal property and qualify for the exemption, the personal property must meet all of the following conditions:

**The combined true cash value of all industrial personal property and commercial personal property owned by, leased by, or in the possession of the owner or a related entity claiming the exemption is less than $80,000 in the local tax collecting unit, and **The property is not leased to or used by a person that previously owned the property or a person that, directly or indirectly controls, is controlled by, or under common control with the person that previously owned the property, and **The exemption must be properly claimed.

To claim the exemption, the owner must file an affidavit (Form 5076), with the Assessor's office NO LATER THAN FEBRUARY 20th!! If the affidavit is filed, the owner is not required to file a personal property statement.

• Your taxes are based on your Taxable Value.
• Your Assessed Value represents approximately half of what we believe the property to be worth.
• Your Taxable Value can never exceed your assessed value.
• Your Taxable Value can only increase at the rate of inflation or 5%, whichever is lower, UNLESS there is a physical change to your property or there is a transfer.
• The annual changes in your Assessed Value are based on studies and sales of property in similar neighborhoods.

Forms

Principal Residence Exemption (PRE) Affidavit
    A Principal Residence Exemption (PRE) may exempt a resident from a portion of your local school operating taxes. To qualify a person must be a Michigan resident who owns and occupies the property as a principal residence. The PRE is a separate program from the Homestead Property Tax Credit, which is filed annually with your Michigan Individual Income Tax Return.

Conditional Rescission of a Principal Residence Exemption
    This form enables a person who has established a new principal residence to retain a PRE on property he previously occupied but still owns. An owner may receive the PRE on the previous principal residence for up to three years if that property is not occupied, is for sale, is not leased and is not used for any business or commercial purpose.

Request to Rescind Principal Residence Exemption
    Your are required to rescind a principal residence exemption when you no longer own and occupy the property as your principal residence. The exemption will be removed December 31 of the year you rescind the exemption.

Principal Residence Exemption (PRE) Active Duty Military Affidavit
    This form allows an owner to retain a PRE while on active duty in the United States Armed Forces if all or any portion of the dwelling is rented or leased, so long as the dwelling otherwise would qualify as the owner's principal residence.

State Tax Commission Affidavit for Disabled Veterans Exemption
    This form is to be used by a disabled veteran who was discharged from the armed forces of United States under honorable conditions or his or her un-remarried surviving spouse. Certification from the US Department of Veterans Affairs is required. Click Here for more information.

Poverty Exemption Instructions
To find more information on who may qualify for the poverty exemption and an application Click Here.

Property Transfer Affidavit
    This form must be filed when there is a transfer of real property (even if you are not recording a deed).

Land Combination Application   
    This form is to notify the Township Assessor that a combination of properties is desired. There is no fee to complete and submit this form. You must provide a legal description that combines all unplatted parcels with this application as the Assessor's office cannot write legal descriptions.

Land Division Application
    A split of a parcel or tract of land requires the approval of the Charter Township of Kalamazoo before a sale of a portion of the parcel occurs. this approval requires compliance with the Land Division Act (Public Act 591 of 1996), compliance with the Charter township of Kalamazoo Zoning Ordinance and full payment of all property taxes. When the completed application and non-refundable fee is received in this office, review will proceed as quickly as possible. Typically the approval or denial will be within three to four weeks.