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The August 15th deadline for Michigan Essential Services Assessment is quickly approaching

August 3, 2016

As part of the Michigan exemption for eligible manufacturing personal property (EMPP), taxpayers were required to report the EMPP to assessors on Form 5278 prior to June 1. To ensure the exemption for EMPP, taxpayers who filed the EMPP Form 5278 must also complete additional steps to report and pay the Essential Services Assessment (ESA), which is imposed on the EMPP. 
Typically, the ESA is a small fraction of the amount of property taxes that would have been imposed without this new exemption. However, failure to timely report and pay the ESA could cause the taxpayer to lose the entire property tax exemption for 2016.
For each claim of exemption that was approved by the Michigan Department of Treasury, the Department has created an on-line statement indicating the amount of ESA that is owed.
By August 15, taxpayers must:

  1. access their statement;
  2. amend it as necessary;
  3. certify and submit it as a return; and 
  4. pay the full ESA liability.

If, by October 15, Treasury does not receive a certified statement and full payment (including interest and late fees if not paid by August 15) the taxpayer’s EMPP exemption will be rescinded.  
Taxpayers may access their ESA statements through Michigan Treasury Online (MTO). Details regarding how to login to MTO and create an account can be found at www.michigan.gov/esa.  
Please contact a member of the Real Estate Tax Appeals Group if you have questions or need any assistance.