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This is a reminder that the Form 5278, Essential Services Assessment (ESA), must be certified (approved) and paid by August 15. Taxpayers have been mailed notifications reminding them to complete the process via the MTO System (Michigan Treasury Online). Payment must be made online. No invoices pertaining to the ESA are being mailed to taxpayers.

When reviewing the online assessment, compare it to the Form 5278 that was filed. There are instances where the online version may not agree to the form filed. If amendments are necessary, these can generally be done online. A calculation of the assessment is available online - see Form 5328.

Appeals can be filed up to September 15. Failure to submit a certified statement and pay by the final date of October 15 can result in penalties and rescinding of the exemption. If rescinded, the taxpayer can become liable for the higher tax rates imposed at the local level and any 328 or IFT exemption could be revoked.

Note - the ESA is not a total exemption of personal property taxes, but rather lower tax rates on assets placed in service prior to 2006 and after 2012. Therefore, there are now two "tax bills" - the local level assessments were mailed in early July and can be paid with a check at the assessor's office (or mailed). The ESA must be paid online.
For more information or questions on this topic, please contact your local UHY professional or visit us on the web at