Personal property tax on tools in Michigan?

[Jon Grider]

That truly stinks, Larry. No wonder Michigan is losing so many businesses to Mexico,southern tier states and even Indiana. The clowns we have in Lansing talk a good talk about bringing businesses into our beautiful state, but the tax structure we straddle them with makes many do exactly what you are doing.

Have you considered writing your Rep and explaining why yet another Michigan business is going down the tube? Not that I'm convinced it would help,but the chamber backslappers need to pause and think about what the business tax laws are doing to our state.

[Dennis Peacock]

Personally, I'd like to see a flat 10% tax with a 10% State tax and forget all the other taxes. I think this should apply no matter if you make $1 per year or $100B per year. Flat tax is what is should be all about.

We pay a personal property tax here in Arkansas as well. I always enjoy paying taxes on my taxes. Not...

[Paul Downes]

Gee thanks, I just filed my business papers. You know i just might go talk to my state rep. This is just all wrong. I will have to check on what I got from the Small Business Administration. They come across as all positive in helping you get going and now I find out about this kind of nonsense. It is CRAZY when you take into account the current economic situation. The stimulus package will pay for child care so you can go get a.......wait a minuet WHAT JOB!!! SO lets tax the "rich" businesses so they don't want to locate in our state. This has got to be some form of self cannibalism. I wonder when the people who came up with these ideas figure out that the "body" they have been trying to keep alive through "heroic"(so called stimulus money that we have to pay back through unjustified taxes) efforts is DEAD!

[Larry Edgerton]

Around me the county nails people when they register their business to protect the name, gives the county a direct link to your wallet.

Ed

Exactly. I am dumping my name as part of my rearranging. The name is Crooked Tree Joinery, and I had no idea how many people do not know what joinery means, so it is a bad name anyway. I will then just be Larry Edgerton. I will actually keep the name, but it will be a consulting firm.

I checked with the other two shops in the township and I am paying 6 times the one that has the closest amount of tools, but if I bring that up they will just raise the other two shops. Thats how they are always right.

[Steve Clardy]

Personally, I'd like to see a flat 10% tax with a 10% State tax and forget all the other taxes. I think this should apply no matter if you make $1 per year or $100B per year. Flat tax is what is should be all about.

We pay a personal property tax here in Arkansas as well. I always enjoy paying taxes on my taxes. Not...

Ditto the 10% tax.


Also have personal property tax here.
Tractors, trailers, boats, horse, goats, tools, whatever they can stick a guy with.
Its hard enough to make ends meet.
Buy something used that the tax has already been paid on, and ya have to pay tax on it over and over over

[Frank Hagan]

Can we make sure no one mentions this in California?

Businesses already pay personal property taxes in CA ... the value of the desks, computers, A/V equipment, machinery, inventory, etc. Its collected by the county. I used to have to list the value of our office furniture for my last company (as well as our forklift, shelving, appliances in the kitchen, etc.)

[Frank Hagan]

Hi Larry-

My Jurisdiction assesses property values based on the condition or ownership of property as of Jan 1 of that year. So it's possible you could get around this problem by selling someone out of state your tools for $1 on Dec 31. Then they just never came and got them.
If you are running a business you might be able to "rent" your tools from this new owner, for $1/yr.

I know you were probably joking, but tax fraud doesn't have a statute of limitations here in California, and man, do they nail you for it. A transaction like that would get you some free time in the gray bar hotel!

[Scott T Smith]

Before you pursue any "creative" ways to avoid the tax, talk with your CPA...it's cute to talk about interesting methods, but in the end, they are not worth it if you risk losing your business or lifestyle due to illegal tax avoidance.

+1

Several years ago my accountant advised to be sure to list on the county personal property tax forms any items that are depreciated on federal returns.

If not, if ever audited the IRS apparently can choose to disallow itemized deductions if they were not reported locally. That could really hurt...

[Dewey Torres]

Sounds to me like time to move!!!

[Mike Null]

Besides the other things Steve Clardy listed, here in Misery, we pay a personal property tax on our vehicles every year. I have two, one is 11 years old the other 6. I just paid this years tax of $590. And we have a sales tax on groceries and an income tax.

Fed. state and local taxes on my cell phone are 20% of my monthly cost.

[David G Baker]

I can agree with Dewey. If I move out of Michigan I will do some serious tax research prior to making the move. Don't know if it is still true but at one time Nevada treated my parents well when it came to state taxing.