Business Accounts (Personal Property)
What Is Personal Property?
Personal Property may include machinery and equipment, furniture and fixtures, computer equipment, leasehold or building improvements not assessed as real property, lease or rental inventory, buildings and improvements located on leased land, and, all other personal property which is not expressly exempted by law. In summary, personal property could be anything that is not assessable as real property and not exempt by law.
In determining what is considered personal property versus real property, the courts have often resolved the issue by applying the following 3-part test:
1. How is the item attached to the real estate? Will its removal destroy or substantially injure the building?
2. What is the purpose of the item? Was it intended to function as part of the building?
3. Was the item intended to become a permanent part of the real estate when it was installed?
A L-4175 must be completed each year and returned by February 20th to:
PO Box 430239
Pontiac, MI 48343-0239