Taxpayers that timely filed a complete Form 5278 to claim the eligible manufacturing personal property (EMPP) tax exemption and were approved by the local taxing unit are required to certify and pay the State Essential Services Assessment (ESA) through Michigan Treasury Online (MTO) by August 15. The Michigan Department of Treasury has created an electronic ESA statement within MTO for each approved exemption parcel from the information contained in the as-filed Form 5278.
A taxpayer and, if applicable, its authorized preparer will be able to utilize MTO to view, edit, and certify the electronic statement, view correspondence from the Michigan Department of Treasury, and pay the ESA.
A taxpayer who fails to submit a certified statement and pay the ESA in full by August 15 shall be subject to a late penalty at a rate of 1 percent per week, up to a maximum of 5 percent, of the total amount due and unpaid. For an eligible taxpayer’s first assessment year, the penalty shall be waived if the statement and full payment are submitted by September 15.
A taxpayer who fails to submit a certified statement and pay the ESA in full, including any late payment penalties, by October 15 shall be subject to rescission of the EMPP exemption. In this instance, the property previously reported as exempt will become subject to local personal property tax for the current tax year.
To complete the claim of exemption and certify and pay the ESA through MTO, the taxpayer must:
- Log into MTO at https://mto.treasury.michigan.gov >>
- Create a business relationship utilizing the FEIN and shared secret information reported on Form 5278
- Review the system-generated electronic statement
- Amend the statement (if necessary)
- Certify and submit the statement as a return
- Pay the ESA liability in full