2020 Essential Services Assessment (ESA) statements providing the tax due on personal property taxes have been generated. Based on the Form 5278 that was filed, ESA statements are now available for viewing, amending if necessary, certifying, and paying via the Michigan Treasury Online system (MTO).
ESA statements must be certified (approved) by the taxpayer and paid by August 15, 2020. The certification process is a separate step from the payment process. First, certify (approve or amend if corrections are needed) the statement via MTO. Continue thru the certification process which will ask about making payment. The system will go to another website to make payment. Banking information must be input into the site for payment processing. Payments must be made electronically via MTO; payments may not be mailed to the Department of Treasury. A taxpayer who fails to electronically submit a certified statement and electronically pay the tax due in full by August 15th shall be subject to a late payment penalty at a rate of 3% of the unpaid liability per month to a maximum of 27%. Failure to pay full tax liability and any late penalties by April 15th of the year following the assessment year (for 2020: April 15, 2021) will result in the rescission of the Eligible Manufacturing Personal Property exemption. The “rescission” of the exemption results in higher tax rates applied to the personal property.
A taxpayer may amend a previously certified ESA statement through MTO on or before September 15, 2020. An amendment includes changes in acquisition costs reported and adding or removing a parcel.
For instructions on accessing and navigating MTO and submitting electronic ESA payments, visit the ESA website. If, after reviewing the information available, taxpayers have questions regarding EMPP or ESA, contact the ESA unit via email at ESAQuestions@michigan.gov or 517-241-0310.