Small businesses have short window to take advantage of state tax break

Business owners in Michigan have an opportunity to save money but must act quickly.  The state has made some significant changes regarding personal property taxes.  Beginning December 31, 2013 eligible personal property is exempt from taxation if the “true cash value” of the property is less than $80,000. This exemption affidavit must be filed by February 10.

What does this mean for a small business in Michigan?  Let’s say your business is an office environment and you have approximately 10 employees.  Assume your business is 10 years old, and over that period of time you have acquired $100,000 worth of office furniture, computers and other equipment.  This would typically result in a true cash value for property tax purposes of approximately $50,000.  The resulting personal property tax due for that company would be in excess of $1,000.  By simply filing the Affidavit of Exemption by February 10, you will not be subject to this tax.

The typical kinds of equipment found in a small business environment that would be subject to personal property tax are office furniture, computer equipment, phone systems, copiers, equipment to manufacture and assemble your product, shelving, cash registers, cooking equipment, tables and chairs, etc.  Other than inventory and supplies, if it is not attached to the building and you can take it with you, it is subject to the personal property tax.

Now for the details, in order to comply with these regulations, you must meet ALL of the following requirements:

• The exemption must be properly claimed on Form 5076 and filed by February 10.  This form can be downloaded at: www.michigan.gov/documents/treasury/5076_439273_7.pdf

• The personal property must be classified as industrial or commercial property.

• The property cannot be leased to or used by a person that previously owned the property.

• The combined True Cash Value is less than $80,000.  This includes property that is owned, leased or in your possession.

This is a great opportunity to save money for your business. The Affidavit of Exemption from Personal Property Tax Exemption must be filed by February 10.  Please contact us with questions or if we can be of assistance regarding this tax saving opportunity.

Martin J. Talty, CPA, is president of Kopmeyer & Talty P.C., a Livonia-based accounting and business consulting company serving the local business community for 28 years.

Column: Livonia is premier spot in state for job seekers

Livonia is premier spot in state for job seekers
Research firm lauds city’s low unemployment rate, reasonable cost of living

Column by Dan West, President of the Livonia Chamber of Commerce

It was nice to see some national recognition this fall for some of Livonia’s strengths.

Livonia was ranked the No. 1 place in Michigan for job seekers, according to Nerd Wallet, a national financial analysis company based in California.

The four-year-old research company analyzes various independent reports, such as U.S. Bureau of Labor Statistics findings, to develop such national and state rankings. Nerd Wallet looked at Livonia’s 4.6% increase with working-age population from 2009-2011, the city’s reasonable cost of living, and the city’s 4.2% unemployment rate – one of the lowest in Michigan.

“What stands out about Livonia is the very low unemployment, comparatively to the rest of the state, and the strong median income, comparatively to the rest of the state,” said Annie Wang, an analyst with Nerd Wallet.

Livonia was ahead of Midland, Dearborn, Rochester Hills, and Kentwood in the top-5.

As the ninth-largest city in Michigan, Livonia has a diverse collection of growing industries. Manufacturing, finance, health care, education, and advertising are the industries represented among Livonia’s leading employers. Also, Crain’s Detroit Business identified four Livonia companies among the 50 fastest growing companies in southeast Michigan: TRW Automotive, NYX Inc., Roush, and Aristeo Construction.

Nerd Wallet also acknowledged Livonia’s location – which is within 30 minutes of downtown Detroit, Metro Airport, and other major destinations and business hubs. It was also noted that Livonia has the variety of resources available locally for job seekers. Among those resources are a number of higher education centers.

In 2014, Livonia will be home to facilities for eight colleges and universities with Schoolcraft College’s expansion adding space for University of Toledo and Wayne State University. Northwood University also has a presence at Schoolcraft. Other schools in Livonia are Madonna University’s main campus and satellite operations for Eastern Michigan University, Central Michigan University, and Davenport University.

Earlier in the fall, Nerd Wallet deemed Livonia to be among the top 10 places in Michigan for young families. The city was No. 9 on the list that gauged home values, school ratings, and affordable cost of living. For this category, researchers looked at 106 Michigan communities Michigan with a population of 10,000 or more.

To further support this designation, the real estate analysis company RealComp noted earlier this year that Livonia outpaces the rest of southeastern Michigan for the number of home sales and increase in median home sales prices in July 2013, compared to July 2012.

While there is no economic research to quantify the community value of green space, Nerd Wallet acknowledged Livonia has the second-most public parks and nature preserves among municipalities in Michigan.

Another factor not considered in economic research, but it worth noting is the level of community involvement by Livonia residents. The city has Michigan’s largest youth hockey association, largest parent-teacher-student association, and some 16,000 young people involved in recreational programs. People of all ages support dozens of churches, more than 60 neighborhood associations, and numerous of service clubs and volunteer organizations.

Economic numbers for the city are nice, but this level of involvement by so many develops the glue that connects so many Livonians to their community. There is no way to quantify that, but for the multiple-generation families that call Livonia home, and for former Livonians who live elsewhere but remain loyal, the community involvement and family friendly attributes are what makes people so fond of Livonia.

Livonia has been regarded as one of the nation’s leading suburban communities to live, work, learn and play for decades. The Nerd Wallet analysis and rankings of Livonia continues to support that this city is a leading community for business, neighborhoods, schools and working families. These are the nuts and bolts of building a solid, likeable community.