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2699, Page 2

Instructions for Completing Form 2699, 2017 Statement of

“Qualified Personal Property” by a “Qualified Business”

“Qualified personal property” made available by a

(B) It is property that is subject to an agreement

“qualified business” may be assessed to its user

(frequently titled a lease) entered into after

provided this form is completed and filed with the

December 31, 1993. Additionally, the agreement must

assessor no later than February 1, 2017. Read the

meet the following four (4) requirements:

following instructions to determine whether you are

a “qualified business” and whether your personal

(a) It must be for a noncancelable term of 12 months

property is “qualified personal property.”

or more.

(1) DEFINITIONS:

(b) The party that becomes the user or possessor of

the personal property must be engaged in a for-profit

“Qualified Business” is a business that meets the

business.

following two (2) requirements:

(A) It is a for-profit business.

property by making all of the periodic payments or

by making all of the periodic payments plus a final

(B) It obtains services relating to the business from 30

payment if the final payment is less than the true cash

or fewer employees during a week selected at random

value of the property. The true cash value is determined

annually by the State Tax Commission no later than

by using the personal property multipliers on Form 632

January 15. “Employees” means persons who perform

(L-4175), Personal Property Statement.

a service for wages or other remuneration under a

contract of hire, written or oral, expressed or implied.

(d) The agreement must require the user or possessor

“Employees” includes employees of independent

of the property to report the properties to the assessor

contractors performing services substantially similar

on a personal property statement on or before February

to employees. If a person is an entity under common

20 and must require the user to pay the property tax.

control or is a member of an affiliated group as those

terms are defined below, the number of employees from

(2) If the “qualified business” is the manufacturer of

whom services are obtained includes all employees of

the personal property that is made available for use

the group and of independent contractors of the group

by another, the “qualified business” must report the

rendering services to the qualified business.

original selling price in the “Purchase Price” column. If

there is no original selling price, the qualified business

An “affiliated group” means two or more corporations,

must report the original cost. See also instruction # 3.

one of which owns or controls, directly or indirectly,

80% or more of the capital stock with voting rights of

(3) Purchase price must include sales tax, freight, and

the other corporation or corporations.

installation.

An “entity under common control” — is as defined in

(4) The location of the property is as indicated in the

the Michigan Revenue Administrative Bulletin 1989-

records of the “qualified business.”

48. You may obtain a copy from Treasury's website at

(5) You may list “Mo” for monthly or “Yr” for yearly.

“Qualified Personal Property” is property that meets

the following two requirements:

(A) It is property on which a retail sales tax has been

paid or on which liability accrued at the same time as

the user acquired possession of the property or on

which sales tax would be payable if the property was

not exempt from the tax.

Form L-4143 - Statement Of "Qualified Personal Property" By A "Qualified Business" - 2017 Page 2

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