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Taxpayers who were granted the Eligible Manufacturing Personal Property (EMPP) Exemption for the 2016 tax year must now create an account through Michigan Treasury Online (MTO), certify their
Essential Services Assessment (ESA) Statement, and pay their tax liability in full.
Once claimants were granted the exemption after filing Form 5278, the assessors transmitted the information to The Department of Treasury, who then generated the electronic ESA Statements and assessed the ESA tax liability.
The ESA is a state-specific tax on eligible property owned by, leased to, or in the possession of an eligible claimant on December 31 of the year immediately preceding the assessment year. The tax is computed by multiplying the amount of eligible personal property by multipliers set by the state. This tax was set up as a replacement specific tax on personal property to reimburse local units for lost revenue used to fund essential services, such as police and fire departments.
To receive the EMPP exemption and avoid late penalties, taxpayers must certify their ESA Statement and pay their tax liability by August 15, 2016. However, for a claimant’s first eligible year, any penalty assessed shall be waived if the statement and full payment are submitted by September 15, 2016.
Eligible claimants who fail to certify and pay their ESA by August 15, or September 15 for those who are eligible for the extended deadline, will be subject to a 1% penalty per week, up to a maximum of 5% of the total amount due and unpaid.
Claimants who fail to submit their statement and payment by October 15, 2016, at the very latest, will be subject to rescission of their personal property tax exemption.
Certify statement & pay ESA tax liability in full through the MTO.
Extended deadline for eligible claimant’s first assessment year – file statement and pay tax liability in full to avoid penalties.
Last date to submit statement and pay tax liability before becoming subject to rescission of EMPP exemption for 2016 tax year.
Step-by-step instructions on how to create an account through the MTO, certify the ESA Statement, and pay tax liabilities can be found at here under “Michigan Treasury Online (MTO) Instructions. Should you have any additional question, please contact your Doeren Mayhew tax advisor.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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