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EMPP/ESA Appeal Deadline Approaching

December 21, 2016

The first year of the Eligible Manufacturing Personal Property (EMPP) exemption and Essential Services assessment (ESA) is coming to a close and claimants should be aware of one last important deadline. EMPP exemption claims for 2016 are still subject to rescission by the Department of Treasury if either the ESA was not paid in full (including any penalty) by the October 15 deadline or if the Department determines the property was not EMPP. The Department was to provide rescission notices to claimants by December 5. Claimants receiving a notice of rescission have until December 31 to appeal an ESA assessment, penalty or rescission to the Michigan Tax Tribunal.
 
The statute’s treatment of late or less than full ESA payment is severe. Failure to pay by the October 15 deadline results in completely losing the exemption for the year. While the Department has shown some flexibility in administratively correcting obviously incorrect ESA assessments, those receiving notices of rescission should consider filing an appeal while pursuing any administrative resolution.
 
Looking forward, the filing deadline for claiming the exemption for 2017 is February 20, 2017. If you have any questions about this or any other matter, please contact one of our Tax Appeals attorneys.