The deadline is approaching for ESA Certification and Payment.
Industrial processors who filed for the Eligible Manufacturing Personal Property (EMPP) exemption (commonly referred to as ESA or Form 5278) must complete the final steps to qualify for the exemption.
No later than August 15, taxpayers who filed for the exemption must use the MTO website to log into their portal and certify or correct and certify the return that is in the MTO system.
Additionally, a payment in full for the tax due must be made electronically by August 15.
Taxpayers that fail to meet the deadline will be subject to a late penalty of 1% per week, up to a maximum of 5%. Any taxpayer who is eligible for the exemption, but fails to certify or pay the tax due by October 15, will have the EMPP exemption rescinded. If a taxpayer fails to meet the deadlines and receives an Intent to Rescind notice, the property will become taxable at the higher ad valorem tax rates.
For instructions on using the MTO website to complete the certification and payment steps, visit the MTO via the following address: www.michigan.gov/documents/treasury/MTO_-_Instructions_2017_-_050117_560414_7.pdf
By: Andrew Seiler
For more information on the Eligible Manufacturing Personal Property exemption or to see if your business qualifies for this tax exemption, please feel free to contact one of our CPAs at (616) 642-9467 or request a complimentary accounting consultation
