Business & Commercial Taxes
The Assessing Department is responsible for assigning values to properties within the City of Dearborn, as required by State of Michigan law.
Taxes for Dearborn Businesses
There are two types of properties assessed by the Assessing Department.
Both property types must be assessed and taxed each year, per state law.
1. Real properties are brick-and-mortar buildings or homes.
2. Personal property accounts for all items used to run a business.
Calculating Personal Property Tax
Property taxes equal the taxable value of a business multiplied by the millage rate.
Property Taxes = Taxable Value / 1,000 x Dearborn Annual Millage Rates
This math formula is set, required, and enforced by the State of Michigan to be used in all Michigan cities, townships, and villages. It is not created or set by the City of Dearborn.
The City of Dearborn is responsible for determining and inputting the assessed value of a business property in Dearborn into the math formula that is created and required by the State of Michigan to set property taxes.
How Taxable Property Value is Determined for Personal Property
Every December 31, appraisers from the Dearborn Assessors Department travel across Dearborn to take note of every business that is open, operating, or has business items still on site.
Each business is responsible for a personal property statement (Form 632) before January 10 of the following year. The business owner is then responsible for filling out and filing the statement with the Assessor’s Office before February 20, as the value of the personal property is self-reported.
The Assessor’s Office then reviews the statements for errors and records the value. According to State of Michigan law, this value is divided in half to arrive at the Assessed Value. Any business that does not file the Personal Property Statement will have an estimate of the value recorded.
Just like real property, the Assessor must notify business owners of the valuation recorded for personal property. In addition, business owners have the right to appeal the valuation at the March Board of Review. If you disagree with the Board of Reviews decision, an appeal to the Michigan Tax Tribunal may be filed before May 31. Appeals of personal property valuations must be made to the March Board of Review before an appeal to the Michigan Tax Tribunal.
Exemptions & Resources
Michigan law exempts certain personal property categories, including the Eligible Manufacturing Tax Exemption and the Small Business Taxpayer Exemption. The following resources provide information on each exemption, including how to determine eligibility and how to claim it.