Fillable Form 2021: Eligible Manufacturing Personal Property Tax Exemption (Charter Township of Waterford)

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Form 2021: Eligible Manufacturing Personal Property Tax Exemption (Charter Township of Waterford)

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Michigan Department of Treasury
Parcel Number
5278 (Rev. 06-20)
2021
Eligible Manufacturing Personal Property Tax Exemption Claim, Personal Property Statement,
and Report of Fair Market Value of Qualied New and Previously Existing Personal Property
(Combined Document)
Issued under authority of PA 206 of 1893 and PA 92 of 2014, as amended. Filing is mandatory in order to claim the Eligible Manufacturing Personal Property tax exemption.
DO NOT COMPLETE THIS COMBINED DOCUMENT UNLESS THE PERSONAL PROPERTY MEETS THE DEFINITION OF ELIGIBLE MANUFACTURING PERSONAL
PROPERTY. Eligible Manufacturing Personal Property (EMPP) means all personal property located on occupied real property if that personal property is predominantly used
in industrial processing or direct integrated support. For personal property that is construction in progress and part of a new facility not in operation, EMPP means all personal
property that is part of that new facility if that personal property will be predominantly used in industrial processing when the facility becomes operational.
Qualied new and qualied previously existing personal property (as dened by MCL 211.9m and 211.9n) for which an exemption has been properly claimed is exempt from local
property tax. To claim this exemption, a fully completed Form 5278 must be delivered to the assessor of the local unit of government in which the qualied personal property
is located no later than February 22, 2021. Failure to complete the required certication, personal property statement, and report of fair market value on Form 5278
may result in the claim being denied. Claiming this exemption when not entitled to it can result in signicant penalties.
Important Note: Leasing companies are not eligible to receive the exemption under MCL 211.9m and MCL 211.9n and may not use this Combined Document. A lessee and
lessor may elect that the lessee report leased personal property on this Combined Document by completing the Election of Lessee Report of Eligible Manufacturing Personal
Property (Form 5467) and attaching it to this form. Absent such an election, the personal property must be reported by the lessor on the personal property statement (Form 632).
PART 1: ELIGIBLE MANUFACTURING PERSONAL PROPERTY TAX EXEMPTION CLAIM
To claim this exemption you must fully complete the entire Combined Document, including the required certication, personal property
statement, and report of fair market value. A separate Form 5278 must be led for each parcel number.
Taxpayer Information
Federal Employer Identication Number (FEIN)
-
Taxpayer Name Associated with this FEIN
Primary Occupant Name, if other than Taxpayer Name
Assumed names, if any, used by legal entity (attach list if necessary):
Contact Person Name Contact E-mail Address Contact Telephone Number
Contact St. No. Contact Street Name or PO Box Contact City State ZIP Code Country
Printed Name of Person in Charge of Records Telephone Number Address where records are retained
Personal Property Location Information
Parcel Number of Personal Property claimed as Eligible Manufacturing Personal Property
NOTE: If the property is located within a city, complete the City and County elds below. If located within a township but not within a village, complete the Township and
County elds. If the property is located within a village, complete the Township, Village, and County elds.
City Township Village County
Street Address where personal property is located City State ZIP Code
List all real property parcel numbers where the personal property reported on this form is located (attach list as necessary)
CERTIFICATION
1. I certify that I own, lease or otherwise occupy the real property on which the eligible manufacturing personal property is located, or I am the sole proprietor, partner, ocer,
managing member or the duly authorized agent of the owner, lessee or occupant (agent must attach letter of authority).
2. I certify that the personal property for which an exemption is claimed pursuant to this Combined Document is Eligible Manufacturing Personal Property as dened by MCL
211.9m and the personal property for which an exemption is being claimed meets the more than 50% requirement of being predominately used in industrial processing or
direct integrated support and therefore qualies or will qualify for exemption under MCL 211.9m or MCL 211.9n.
3. I certify my understanding that according to Public Act 92 of 2014, as amended, I am required to provide access to the books and records, for audit purposes, relating to
the location and description; the date of purchase, lease, or acquisition; and the purchase price, lease amount, or value of all personal property owned by, leased by, or in
the possession of that person or a related entity if requested by the assessor of the township or city, county equalization department, or Michigan Department of Treasury
for the year in which the statement is led and the immediately preceding 3 years.
4. I certify my understanding that to qualify for the EMPP exemption on this parcel, I must electronically certify an ESA statement and make electronic payment of any ESA
liability by the statutory deadline of August 15, 2021, and that failure to pay ESA liability and applicable late payment penalty via ACH, EFT, or e-le by the statutory deadline
of April 15, 2022, will result in rescission of this exemption. I understand that Public Act 92 of 2014 prohibits payment of ESA liability by check.
5. I hereby certify that all the information contained within and attached to this Combined Document is true and accurate to the best of my knowledge, information and belief.
Signature Date Assessor Use Only - Date of Receipt
Printed Name
Title
Continue on Page 2
Reset Form
5278, Page 2
PART 2: Personal Property Statement for Eligible Manufacturing Personal Property (EMPP), Renaissance Zone
Personal Property and Industrial Facility Personal Property
Utilize this form to report Personal Property only if you are reporting personal property that was acquired after 2012 or before 2011. If all reported property
was acquired in years 2011 and/or 2012, Form L-4175 should be led instead.
Summary and Reporting Instructions: Provide a yes or no answer to all questions and provide the additional information as necessary.
1. Have you excluded from this statement any exempt “Special Tools” and/or Air/
Water Pollution Control Facilities and/or Wind/Water Energy Conversion
Devices?...............................................................................................................
If yes, enter Total Original Cost
Yes No
2. Have you reported all of your assessable tangible personal property and EMPP
located in Michigan to the appropriate assessment jurisdiction, including all fully
depreciated or expensed assets?......................................................................... Yes No If no, attach explanation.
3. Did you hold a legal or equitable interest in assessable personal property which
you have not reported on this Form 5278 (see instructions) and/or have any of
your assets been subjected to “rebooking” of costs for accounting purposes or
been purchased used?......................................................................................... Yes No If yes, attach explanation.
4. Are you a party (as landlord or tenant) to a real property rental or lease
agreement in this jurisdiction?.............................................................................. Yes No If yes, complete Section O.
5. Is any of your property “daily rental property” per P.A. 537 of 1998? ................... Yes No If yes, complete Form 3595.
6. Are other businesses operated at your location(s)?............................................. Yes No If yes, attach itemized list.
Report of Eligible Manufacturing Ad Valorem Personal Property and P.A. 198 (IFT) Property:
Indicate Type (Check all that apply): Ad Valorem IFT/P.A. 328 Renaissance Zone
The taxpayer must annually report all personal property that is Eligible Manufacturing Personal Property, which is still subject to Ad Valorem or IFT assessment, within Part 2
of this Statement until the personal property becomes exempt. All such Personal Property in your possession at the location stated in Part 1, including fully depreciated and
expensed assets, must be reported on this Statement. If you had “Move-Ins” of used property, you must also complete Form 3966, Taxpayer Report of Personal Property
“Move-Ins” of Used Equipment. Refer to the Taxpayer Report of Personal Property “Move-Ins” of Used Equipment (Form 3966) for additional instructions. Renaissance Zone
and extended IFT property must also be reported in Part 3.
Section A: Furniture and Fixtures Section E: Consumer Coin Operated Equipment
Year in Service Assessor Calculations Year in Service Assessor Calculations
2012 .33 2012 .30
2011 .29 2011 .23
TOTAL A1 A2 TOTAL E1 E2
Section B: Machinery and Equipment Section F: Computer Equipment
Year in Service Assessor Calculations Year in Service Assessor Calculations
2012 .38 2012 .08
2011 .36 2011 .08
TOTAL B1 B2 TOTAL F1 F2
Section D: Oce, Electronic Video and Testing Equipment
Section G: Other Owned Assessable Personal Property
(attach separate description)
Year in Service Assessor Calculations
2012 .33 Year in Service Assessor Calculations
2011 .31 2012
TOTAL D1 D2 2011
TOTAL G1 G2
Continue on Page 3
5278, Page 3
Section I: Qualied Personal Property of a Qualied Business per MCL 211.8a(6)(c)
Year in Service Taxpayer Original Costs New Assessor Calculations Qualied Business Name
2012
2011
TOTAL I1 I2
Section J and K: Leased and Other Personal Property in Your Possession Which is Not Qualied Personal Property
Name and Address of Owner Description of Equipment
Age (estimate if
necessary)
Selling Price New
(estimate if necessary)
Total J and K1
Section M: Leasehold Improvements
All Leasehold improvements made at your place of business should be reported under this Section, even if you believe that the improvements are
not subject to assessment as personal property. Attach additional explanations or copies of xed asset records. Any personal property reported in this
Section should not be reported elsewhere on this Statement.
Year in Service Detailed Description Original Costs STC Multiplier
True Cash Value
Assessor’s Calculations
Total Cost Incurred
M1
Section N: All Freestanding Signs and Billboards
Address or Location of Sign or Billboard Year Originally Built Total Capitalized Cost
True Cash Value
Assessor’s Calculations
Total N1 N2
Section O: Rental Information (To be completed by the Landlord or Tenant)
1. Address of property rented or leased 2a. Date current lease or rental arrangement began
2b. Is this a renewal?
Yes No
3. Date current lease will expire, if other than a month-to-month tenancy 4. Monthly Rental $
5. Are there options to renew the lease?
Yes No
6. Expenses (e.g. taxes, electric, gas, etc.) paid by the tenant 7. Square feet of space occupied by tenant
Note to Assessor: Certain buildings and structures on leased land (but not including freestanding
signs and billboards) must be assessed on the real property roll. See Bulletin 1 of 2003.
Assessor Calculated
Value (O1)
Grand Total Costs of Personal Property Subject to Local Property Tax. Enter zero costs if appropriate.
Description of Totals Taxpayer Totals Assessor Calculations
1.Total cost from Sections A through O.
2.Total cost of Cable TV, Utility and Wind Energy Assets for years
2011-2012 on Forms 633, 3589 and 4565. (Include copy.)
3.Total cost of Idle or Obsolete or Surplus Equipment and
Cellular Site Equipment for years 2011-2012 on Forms 2698
and 4452. (Include copy.)
4.Total cost of Automotive Manufacturing Equipment for years
2011-2012 on Form 4798. (Include copy.)
GRAND TOTALS
ASSESSOR’S ADJUSTMENT(S)
TRUE CASH VALUE
ASSESSED VALUE (50% OF TCV)
Continue on Page 4
-
5278, Page 4
PART 3: Report of Fair Market Value (Acquisition Cost) of Qualied New and Previously Existing Personal Property
Qualied new personal property and qualied previously existing personal property located on occupied real property is exempt from local ad valorem
taxation and is instead subject to the Essential Services Assessment (ESA), payable to the Michigan Department of Treasury. Additionally, certain P.A. 198
(IFT) Property and New Personal Property (P.A. 328) as determined below are subject to the Essential Services Assessment. See instructions, page 6.
Check if there is zero acquisition cost reported in the total in Part 3, Section B, below. Unless this box is checked, failure to report
acquisition cost in Section B may result in rescission of the EMPP exemption for this parcel.
Check if the personal property reported on this form includes leased personal property for which the election of lessee report is being led.
The taxpayer must complete the Election of Lessee Report of Eligible Manufacturing Personal Property (Form 5467) and include it with this
copy of Form 5278 when led with the local tax collecting unit.
Section A: Summary and Reporting Instructions for Essential Services Assessment
Provide a yes or no answer to all questions. The Acquisition Cost [MCL 211.1053(a)(i)] for all personal property must be reported in Section B below.
However, only the Acquisition Cost for property subject to an extended New Personal Property (P.A. 328) or extended Industrial Facilities (P.A. 198)
Exemption (see denitions in Part 5) should be reported in years 2011 and/or 2012 of Part 3 of the Combined Document.
1. Is the personal property reported on this Combined Document subject to an Industrial Facilities Exemption Certicate
(P.A. 198 of 1974) that was in eect on or after December 31, 2012? If yes, attach a copy of the IFT certicate............... Yes No
IFT Certicate
—
Number:
NOTE: The IFT Certicate Number is typically seven digits, although some may also have an additional character that is entered in the dotted
eld. Otherwise, leave the dotted box blank.
2. Is the personal property reported on this Combined Document subject to a P.A. 328 (MCL 211.9f) New Personal
Property exemption that was in eect on or after December 31, 2012, and expired on or before December 30, 2020?
If yes, attach a copy of the P.A. 328 certicate...................................................................................................................... Yes No
P.A. 328
—
Certicate Number:
3.
Is the personal property reported on this Combined Document exempt from the Essential Services Assessment, and
either subject to or exempt from an Alternative Essential Services Assessment, as a result of a resolution adopted
under provisions of MCL 211.1059 by the Michigan Strategic Fund (MSF)? If yes, attach a copy of the MSF resolution..
Yes No
MSF Certicate
—
Number:
4. Is the personal property reported on this Combined Document subject to a Renaissance Zone Exemption?................ Yes No
Renaissance Zone Name Expiration Date
Section B: Report of Acquisition Cost
Report of Qualied New Personal Property (MCL 211.9m) and Qualied Previously Existing Personal Property (MCL 211.9n). For purposes of reporting in this section,
“Acquisition cost” means 100% of the fair market value of personal property at the time of acquisition by the rst owner, including the cost of freight, sales tax, and installation,
and other capitalized costs, except capitalized interest, prior to any reduction of Fair Market Value provided for by statute. Report Construction in Progress (CIP) as dened
in MCL 211.9m(8)(c) in this part of the Document. For Construction in Progress, Acquisition Cost includes the cost of freight, sales tax, and installation. (See instructions for
more information on Construction in Progress.)
Year Placed in Service Acquisition Cost [MCL 211.1053(a)(i)]
Construction in Progress
2020
2019
2018
2017
2016
2015
2014
* Acquisition Cost for 2011 and 2012 should only be reported in
Part 3 if an extended IFT or extended P.A. 328 certicate with
2013
a Certicate Begin Date before December 31, 2012, AND End
*2012
Date before December 31, 2020, is reported in Section A above.
Note for
Acquisition Costs for 2011 and 2012 for personal property
2011 12
*2011
subject to an extended IFT should also be reported in Part 2.
2010 and Prior
See instructions for the rules regarding IFT, extended IFT, P.A.
328, or an extended P.A. 328 certicate reporting.
TOTAL
Y Y Y Y
Certicate Begin Date Certicate End Date
Y Y Y Y
Certicate Begin Date Certicate End Date
Y Y Y Y
Certicate Begin Date Certicate End Date
Instructions for Form 5278
Eligible Manufacturing Personal Property Tax Exemption Claim, Personal Property Statement,
and Report of Fair Market Value of Qualied New and Previously Existing Personal Property
(Combined Document)
NOTE: A section on term denitions is included at the end of these instructions.
What’s New for 2021
• Qualified new and previously existing personal property
first placed in service inside or outside of the state in either
2010 or 2020 is now exempt from local property taxation
and is instead subject to the State Essential Services
Assessment (ESA). Eligible Manufacturing Personal
Property (EMPP) first placed in service in 2020, 2019, 2018,
2017, 2016, 2015, 2014, 2013, and 2010 and prior is now
eligible and acquisition costs should be reported in Part 3,
Section B, of this Combined Document.
• Acquisition costs for years 2011 and 2012 should be
reported in Part 3, Section B, only if the property is subject
to an extended IFT or extended P.A. 328 certificate. Any
property reported for 2011 or 2012 in Part 3, Section B, must
also be reported in Part 2 of Form 5278.
• Because February 20, 2021, falls on a Saturday, delivery
by the United States Postal Service is timely if postmarked
on or before February 22, 2021.
• Eligible claimants who did not submit Form 5278 to the
assessor of the local unit in which the property is located by
February 22 may submit a completed Form 5278 directly to
the March Board of Review of the local unit in which the
property is located prior to final adjournment of their March
meeting.
• Full electronic payment of the 2021 Essential Services
Assessment must be received no later than August 15,
2021. If payment is not received in full by August 15, a late
payment penalty at a rate of 3% of the unpaid balance per
month, up to a maximum of 27%, will incur. In calculating
the penalty, a partial month is considered a whole month and
will not be prorated based on the day the late payment is
received by the Department of Treasury.
• If electronic payment of the 2021 Essential Services
Assessment and late payment penalty is not received in
full by April 15, 2022, the Department of Treasury is
required to rescind the claimant’s eligible personal property
exemption(s).
General Instructions
This Combined Document may only be used by those
claiming the Eligible Manufacturing Personal Property
(EMPP) exemption. Taxpayers should review the Assessor’s
Guide to Eligible Manufacturing Personal Property and
ESA and ESA Topics available online at www.michigan.
gov/ESA for more information on what is EMPP. Claimants
must annually complete this form in its entirety for each
parcel of eligible personal property and file it with the local
unit where the personal property is located by February
20, 2021 Eligible claimants who did not file by February
20, 2021, may file Form 5278 to the 2021 March Board of
Review prior to final adjournment of their March meeting.
Taxpayers not claiming the EMPP exemption should not
use this Combined Document, but should file the Personal
Property Statement (Form 632) with their local tax
collecting unit.
Leasing companies are not eligible to receive the exemption
for qualified new personal property and qualified previously
existing personal property and may not use this Combined
Document. With respect to personal property that is the
subject of a lease agreement, regardless of whether the
agreement constitutes a lease for financial or tax purposes,
if the personal property is or will be Eligible Manufacturing
Personal Property, the lessee and lessor may elect that the
lessee report the leased personal property on this Combined
Document and be responsible for any Essential Services
Assessment liability that results.
To elect for the lessee to report the leased personal
property, at least some, but not necessarily all, personal
property subject to the lease agreement must be Eligible
Manufacturing Personal Property as defined in MCL 211.9m
and MCL 211.9n. The Election of Lessee Report of Eligible
Manufacturing Personal Property (Form 5467) must also be
attached to this Combined Document at the time it is filed
with the local tax collecting unit.
If election is made, property subject to the lease agreement
must be reported on Part 2 and/or Part 3 of this Combined
Document, as applicable.
All State Tax Commission Bulletins and Forms referenced
in these instructions can be accessed at www.michigan.gov/
PPT or www.michigan.gov/ESA.
Other forms that are required to be filed with this Statement
are required to be completed only for personal property
placed in service for years 2011 and 2012. These forms are:
• Form 633, Electric Distribution Cooperative Personal
Property Statement.
• Form 3589, Cable Television and Utility Personal
Property Report.
• Form 4565, Wind Energy System Report.
• Form 2698, Idle Equipment, Obsolete Equipment, and
Surplus Equipment Report.
• Form 4452, Cellular (Wireless) Site Equipment Personal
Property Report.
• Form 4798, Automotive Manufacturing Equipment
Personal Property Report.
• Form 5467, Election of Lessee Report of Eligible
Manufacturing Personal Property.
Instructions — Page 1
Part 1: Claim of Eligible Manufacturing Personal
Property
This section must be filled out in its entirety in order to
qualify for the exemption. This includes the local unit
information, property owner information and certification.
Partially completed forms may not be accepted by the
local unit and your failure to fully complete the Combined
Document may result in denial of the exemption.
Personal Property Location Information: The parcel
number for the personal property being claimed as EMPP
must be provided. If no number exists, contact the assessor
of the local unit in which the personal property is located
and request that a number be assigned. List the local unit
of government in which the property is assessed. Only one
field, in addition to the County field, should be entered
unless the claimed personal property is located in a village,
in which case both the village and township should be listed.
Certification of the Form indicates understanding that
the certification and payment of ESA must be performed
electronically. No tax bill will be sent by Treasury and no
ESA return or payment will be accepted by mail.
Instructions for Part 2: Personal Property Statement for Eligible Manufacturing Personal
Property, Renaissance Zone Personal Property and Industrial Facility Personal Property
Part 2: General Instructions
Generally, the instructions for completing the Statement
in Part 2 are the same as the instructions that have been
used in the Personal Property Statement (Form 632).
Attach additional pages if there is insufficient space to
report on the Combined Document.
Summary Question 1: “Special Tools” are exempt from
taxation, pursuant to MCL 211.9b. If you are excluding
“special tools” from your statement, you must check “Yes”
and insert the amount of original cost excluded. (If you do
not have exempt special tools but have pollution control or
wind/water energy conversion devices, check the “Yes” box
but insert “N/A” in the space provided for reporting the cost
of exempt special tools.) “Special tool” means a finished or
unfinished device such as a die, jig, fixture, mold, pattern,
special gauge, or similar device that is used, or is being
prepared for use, to manufacture a product and that cannot
be used to manufacture another product without substantial
modification of the device. As used herein, a “product”
can be a part, a special tool, a component, a subassembly
or completed goods. “Special tools” do not include devices
that differ in character from dies, jigs, fixtures, molds,
patterns, or special gauges. Machinery or equipment, even
if customized, and even if used in conjunction with special
tools, is not a “special tool.”
NOTE: Exempt special tooling retains specific exemption
under MCL 211.9b and MCL 211.9d. As a reminder, there
are very few tools that fall into the exempt special tools
category. Tooling that was previously reported in Section H
will either now be exempt and subject to ESA and reported
in Part 3 (years 2013, 2014, 2015, 2016, 2017, 2018, 2019,
or 2020 and 2010 and prior) or reported in Part 2 for years
2011 and 2012 in the corresponding table. (Taxpayers are
recommended to use Section B.)
Air and water pollution control facilities and/or wind
or water energy conversion devices qualify for exemption
only if an exemption certificate has been issued by the State
Tax Commission. If you claim such an exemption, check
“Yes” and attach an itemized list of the certificate numbers
and the dates of issuance.
Summary Question 2: You must file a completed Form
5278 with the assessor of every Michigan assessment
jurisdiction in which you had Eligible Manufacturing
Personal Property on December 31, 2020. Further, you are
required to report all tangible personal property in your
possession in this location even if the property has been
fully expensed or depreciated for federal income tax or
financial accounting purposes. If you answer “No” to this
question, attach a detailed explanation.
Summary Question 3: The purpose of this question is to
determine whether you are a party to a contract relative to
personal property located in this jurisdiction on December
31, 2020, that you have not reported on this statement,
perhaps because of your belief that another party to
the contract is the proper party to report. This includes
situations where you believe you hold only a security
interest in personal property, in spite of the fact that the
contract is labeled a “lease.” If you answered “yes” to this
question, attach a rider that includes the name(s) of the
interest holder(s), the nature of your interest, a description
of the equipment, the year the equipment was originally
placed in service, its original selling price when new and
the address where the property was located on December 31,
2020. “Conditional sale” leased equipment must be reported
by the lessor.
The valuation multipliers contained in Sections A through
F on page 2 are intended to be applied to the acquisition
cost of new, not used, personal property. If the acquisition
cost new of an asset is known to you or can be reasonably
ascertained through investigation, you must report that
cost in the year it was new when you complete Sections
A through F, even if you have adjusted the cost in your
accounting records to reflect revaluation of the asset
using a “purchase,” “fresh start,” “push-down” or similar
accounting methodology, or even if your booked cost
reflects a “used” purchase, lease “buy-out” price or a “trade-
in” credit. If you were unable to report the acquisition cost
new for one or more of your assets, you should check “Yes”
and attach a list of all such assets. On the list, provide a
detailed description of each asset, the year or approximate
year that the asset was new, and the Section, the amount and
Instructions — Page 2
acquisition year at which you have reported the asset. You
must also provide a written explanation of the reason(s) that
the original acquisition cost information is not available.
Summary Question 4: Check “Yes” if you are a lessor
(landlord), a lessee (tenant) or a sublessee (subtenant) in a
rental contract relating to the real property at this location.
MCL 211.8(i) provides that, under some circumstances, the
value, if any, of a sub-leasehold estate shall be assessed to
the lessee. If you check “Yes,” complete Section O. Your
rental arrangement will be analyzed by the assessor. If
you check “Yes” and have made leasehold improvements
to the real estate, you must also complete Section M. Your
completion of Sections M and O will not necessarily result
in an increased assessment.
Summary Question 5: “Daily rental property” is tangible
personal property, having a cost new of $10,000 or less,
that is exclusively offered for rental, pursuant to a written
agreement, on an hourly, daily, weekly or monthly basis
for a term of 6 months or less (including all permitted
or required extensions). If you acquired the property
“used” you must determine the cost new for purposes of
determining whether the property qualifies for “daily rental
property” treatment. If you believe that you have such
property, see Property Statement - Daily Rental Property
(Form 3595) for additional information. If you qualify, you
must complete Form 3595.
Summary Question 6: This question requires you to
disclose other businesses that share space with you at the
location(s) of your business. If you answer “Yes” attach a list
of all other businesses operating at your location(s). If you
are located in a shopping center, office building or other
multi-tenant facility, you are not required to list businesses
having a different legal address.
Part 2: General Instructions for Sections A
through F
You must report in these Sections the full acquisition cost
new, in the year of its acquisition new, of all machinery
and equipment, computer equipment, furniture and
fixtures, signs, coin operated equipment, office equipment,
electronic, video and testing equipment, rental video tapes
and games and other tangible personal property owned by
you and located in this assessment jurisdiction, even if you
have fully depreciated the asset or have expensed the asset
under Section 179 of the Internal Revenue Code or under
your accounting policies. All costs reported must include
freight, sales tax and installation costs, even in cases
where the cost was actually incurred by another. The costs
reported must include all costs (except capitalized interest)
that would be capitalized by an end-user/owner of the
property under generally accepted accounting principles,
including overheads and “indirect costs” associated with the
process of constructing, acquiring or making the property
available for use. Capitalized expenditures made to a piece
of machinery or equipment after the initial acquisition year
must be reported in the year the expenditure is booked as
a fixed asset. These costs must be reported the same as
they are shown on your financial accounting fixed asset
records, assuming that you account using generally accepted
accounting principles. You must also report in these sections
any other tangible personal property in your possession or
under your control in this jurisdiction that is not reported
under Sections G through N. The acquisition costs for the
assets reported under each section must be totaled for each
acquisition year. Place the yearly total on the line of the
section corresponding to the year that the property was
acquired. You must report the original acquisition cost, not
your estimation of the value of the property.
The cost reported in each of the sections of this form, and
other forms used with this form, should include the full
invoiced cost without deduction for the value of certain
inducements such as: service agreements and warranties
when these inducements are regularly provided without
additional charge.
Inventory is exempt from assessment. Inventory does
not include personal property under lease or principally
intended for lease or rental, rather than sale. Property
allowed a cost recovery allowance or depreciation under the
Internal Revenue Code is not inventory.
Motor vehicles registered with the Michigan Secretary of
State on December 31, 2020, are exempt. Special mobile
equipment, as defined by MCL 257.62, and nonregistered
motor vehicles are assessable.
Computer software, if the purchase was evidenced by
a separate invoice amount, and asset number, and if the
software is commonly sold separately, is exempt.
If you have had “Move-Ins” of used property during calendar
year 2020, you must complete Form 3966, in addition to
completing this form. “Move-Ins” are items of assessable
personal property that were not assessed in this city or
township in 2020, including: acquisitions of previously used
personal property (which should be reported in the year it was
new and at the cost when new); used personal property you
have moved in from outside this city or township; and personal
property that you mistakenly omitted from your statement in
2019. “Move-Ins” do not include property moved from another
location within this city or township or assessed to another
taxpayer within this city or township in 2020 (i.e. property
reported by a previous owner or previously leased property
reported by the lessor to this city or township last year). All
“Move-Ins” must be reported in the appropriate section of this
form, in addition to being reported on Form 3966.
You must report the cost of business trade fixtures in the
appropriate Section, A through F, rather than in Section
M where you report leasehold improvements. You must
also report the costs of installing personal property in
the appropriate Section, A through F. Trade fixtures and
installation costs of machinery and equipment must not be
reported in Section M, even if you have booked them as
leasehold improvements for financial accounting purposes.
Trade fixtures are items of property that have been attached
to real estate by a tenant to facilitate the tenant’s use of
Instructions — Page 3
the property for business purposes and which are both
capable of being removed and are removable by the tenant
under the terms of the lease. Examples of trade fixtures are
certain costs related to telephone and security systems and
most signs. Examples of installation costs are the costs of
machine foundations and electric, water, gas and pneumatic
connections for individual manufacturing machines.
A summary of the items that should be reported in each
section is contained in STC Bulletin 12 of 1999, its later
annual supplement(s) and in these instructions. MCL
211.19 requires that you complete this form in accordance
with the directions on the form and in these instructions.
You may, however, attach supplementary material for the
assessor to consider in making valuation decisions. If you
have questions regarding proper categorization of property,
contact the State Tax Commission for clarification.
Part 2: Personal Property Statement – Detailed
Instructions
Report of Statement Section A, Furniture and Fixtures:
The assets to be reported in this section include decorations,
seating, furniture (for offices, apartments, restaurants, stores
and gaming establishments), shelving and racks, animal
cages and tanks, lockers, modular office components,
cabinets, counters, rent-to-own furnishings, medical exam
room furnishings, therapeutic medical beds and bedding,
bookcases, displays, mobile office trailers, special use sinks
(such as those found in medical offices, beauty shops and
restaurants), tables, non-electronic recreational equipment,
filing systems, slat walls, non-freestanding signs, window
treatments, uniforms and linens, cooking, baking and eating
implements, shopping carts, booths and bars. Other assets
may be included at a later time.
Report of Statement Section B, Machinery and
Equipment: The assets to be reported in this section include
all assets that are not designated for disclosure in another
section. Specifically, such assets include the following
types of machinery and equipment: air compressors,
airport ground, non-coin operated amusement rides and
devices, auto repair and maintenance, beauty and barber
shop, boiler, furnace, bottling and canning, crane and hoist,
car wash, chemical processing, construction, unlicensed
vehicular, conveyor, non-coin operated dry cleaning and
laundry, air makeup and exhaust systems, manufacturing
and fabricating, food processing, gym and exercise, heat
treating, landscaping, sawmill, incinerators, maintenance
and janitorial, non-electronic medical and dental and
laboratory and veterinary equipment, mining and quarrying,
mortuary and cemetery, painting, hydrocarbon refining
and production and distribution, plastics, pottery and
ceramics, printing and newspaper, rubber manufacturing,
scales, ski lifts, smelting, stone and clay processing,
supermarket, textile, tanning, vehicle mounted, waste
containers, wire product manufacturing, woodworking,
automated tellers (ATM), computer controlled lighting, CNC
controlled manufacturing, theater equipment, restaurant
food preparation and dispensing and storing and serving
equipment, soft drink fountains, coin counters, beverage
container return machines, storage tanks, hand tools
of mechanics and trades, nonregistered motor vehicles,
freestanding and other safes not assessed as real property,
oil and gas field equipment and gathering lines prior to
commingling product with other wells (other lines are
reported in Section J, Form 3589), portable toilets, metal
shipping pallets and containers, portable saw mills, LP
tanks under 2,000 gallons, fuel dispensing control consoles,
computer-controlled printing presses, stereo lithography
apparatus, forklift trucks, non-coin operated gaming
apparatus and computerized and mechanical handling
equipment, commercial mail sorting operation equipment,
pill counters, pram robotics. Other assets may be included at
a later time.
Section C is omitted from use.
Report of Statement Section D, Office, Electronic Video
and Testing Equipment: The assets to be reported in
this section include office machines, non-computerized
cash registers, faxes, mailing and binding equipment,
photography and developing equipment, including one-
hour photo developing equipment, shredders, projectors,
telephone and switchboard systems (even if computerized),
audio and video equipment (used for receiving, transmitting,
recording, producing and broadcasting), amplifiers, CD,
cassette and disc players, speakers, cable television local
origination equipment, electronic scales, surveillance
equipment, electronic diagnostic and testing equipment
(for automotive shops, medical offices, hospitals and
dental offices), ophthalmology testing equipment, satellite
dishes, video-screen arcade games, electronic testing
equipment, electronic laboratory equipment, cellular
telephones, medical laser equipment, reverse osmosis and
hemodialysis systems, movable dynamometer, spectrum
analyzer, security systems, 2-way and mobile land radio
equipment, pay-per-view systems, wooden and plastic
pallets and shipping containers, rental musical instruments
and distributive control systems (see STC Bulletin 3 of
2000). Office machines which are not capable of being
integrated into a local area or wide area computer network,
office machines that are only capable of being used as a
facsimile transmitting/receiving machine and/or as a copier,
and office machines that are multifunctional but are not
capable of being used as a computer peripheral, are reported
in this section. A copier is a freestanding or desktop piece
of office equipment, which is most commonly used in an
office setting, and which is primarily designed to print, or
to make copies of short-run text material produced in that
office. Copiers generally use commercially available 8.5” by
11” bond or copy paper and produce duplicate originals of
text documents in such a way that the use of carbon paper
or other duplicating processes can be avoided. Printing
presses are not copiers and must be reported in Section B
of this form even if the operation of the printing press is
regulated or controlled digitally, is controlled by a computer,
or is automated. A printing press is a device designed
primarily to produce commercial runs of printed material,
Instructions — Page 4
such as books, pamphlets, forms, magazines, newspapers, or
advertising circulars, for commercial sale, regardless of the
technology employed in such production and regardless of
the type of paper which is used. The definition of a printing
press specifically includes any machine that employs an
offset or other non-impact printing process, if the machine
otherwise meets the definition of a printing press. Cellular
site equipment, specifically including communication towers
and land improvements must be reported on Form 4452,
rather than in this section.
Report of Statement Section E, Consumer Coin Operated
Equipment: The assets to be reported in this section include
consumer coin-operated equipment such as bill and change
machines, juke boxes, pinball machines, coin-operated pool
tables and other non-video arcade games, snack and beverage
machines, other vending machines, news boxes, laundry
equipment, coin operated telephones and slot machines. Other
assets may be included at a later time.
Report of Statement Section F, Computer Equipment:
The assets to be reported in this section include assessable
software, personal and midrange and mainframe computer
and peripheral equipment, including servers, data storage
devices, CPUs, input devices such as scanners and
keyboards, output devices such as printers and plotters,
monitors, networking equipment, computerized point
of sale terminals, global positioning system equipment,
lottery ticket terminals, gambling tote equipment, pager
instruments, cable television converters and receivers for
home satellite dish television systems.
A programmable logic control device for a machine should
be reported in Section B with the machine it serves. Office
machines which are capable of being integrated into a local
area or wide area computer network and office machines that
are single function, or multifunction, and which are capable
of being used as a computer peripheral, including copiers that
can be used as a computer peripheral, are reported in this
section. Other assets may be included at a later time.
Report of Statement Section G, Other Owned Assessable
Personal Property: Report all nonexempt tangible
personal property owned by you at this location that is not
entitled to depreciation/cost recovery under the United
States Internal Revenue Code or that the assessor has told
you to report in this section or that otherwise presents
special valuation problems. An example of property not
entitled to depreciation/cost recovery is fine art. Examples
of properties that represent special valuation problems are:
locally- assessed copper and fiber optic cable not reportable
in Section M, frequently supplemented professional books,
feature motion picture films, audio and video productions
not sold to the public at large, musical instruments used
for professional performance, LP tanks of 2,000 gallons or
more that have not been assessed as real property, nuclear
fuel and toll bridge company structures. Provide all
requested information. An inspection of the property may
be necessary. Property reported in this section should not be
reported elsewhere on this form.
Section H is omitted from use.
Report of Statement Section I, Qualified Personal
Property: Report “qualified personal property” in this
section. Do not report “qualified personal property” in
Sections A through F. “Qualified personal property” is
property that was made available to you by a “qualified
business” (usually a leasing company or a finance company)
and which is not assessable to the “qualified business.” Such
property is assessable to you as the user. The requirements for
“qualified business” treatment are strict and many leasing and
financing companies do not qualify. Further, such treatment
only applies to property subject to an agreement (usually
labeled a lease) entered into after December 31, 1993, that
qualifies for treatment as “qualified personal property.” The
“qualified business” is required to have filed a statement
with the assessor by February 1 of the current year and is
required to have made a written agreement with you in which
it is specifically agreed that you will report the property to the
assessor as “qualified personal property.” See MCL 211.8a.
Report of Statement Section J and K, Leased and
Other Personal Property in Your Possession Which in
Not Qualified Personal Property: Report all business
machines, postage meters, machinery, equipment, furniture,
fixtures, tools, burglar alarms, signs and advertising devices
and other tangible personal property that you are renting
or leasing from another person or entity. Provide all of the
information requested for each lease. You must provide
the actual or estimated selling price new of the asset MCL
211.13 provides that all tangible personal property shall
be assessed to the owner thereof, unless the owner is not
known. A personal property statement will be sent to the
owner. Property reported in this section should not be
reported elsewhere on this form.
Report all machines, meters, machinery, equipment,
furniture, fixtures, tools, signs and advertising devices that
are in your possession but are not owned, leased or rented by
you. Examples include equipment left with you by vendors,
such as display racks, coolers or fountain equipment,
property loaned to you by another, property left with you
for storage or rebuilding, consigned equipment not held for
resale and assets sold but not yet picked up by the purchaser.
Provide all of the information requested for each asset. You
must provide the actual or estimated selling price new of the
asset so that control totals can be generated for use on the
Summary and Certification portion of page 1. MCL 211.13
provides that all tangible personal property shall be assessed
to the owner thereof, unless the owner is not known. A
personal property statement will be sent to the owner.
Section L is omitted from use.
Report of Statement Section M Leasehold
Improvements: This section is to be completed by tenants
who are renting or leasing real property. All improvements
(leasehold improvements) you have made to the real
property in either 2011 or 2012 should be reported, even
if you believe that the improvements are not subject to
assessment as personal property. Provide as much detail
Instructions — Page 5
as possible so that the assessor can determine whether
an assessment should be made. Coaxial and/or fiber-optic
wiring costs and associated infrastructure of audio and/or
visual systems serving subscribers of one or more multiple
unit dwellings or temporary habitations under common
ownership, and which do not use public rights-of-way shall
be reported in this section and be clearly identified as such.
You may use attachments, but only if your attachment
provides all the information requested in this section and
if you insert the Total Cost Incurred where required on the
Combined Document.
Report of Statement Section N, All Freestanding Signs
and Billboards: Report the total capitalized cost and year of
construction of buildings and other structures you have placed
on land not owned by you, such as leased or public lands or on
public rights- of-way. Costs of freestanding communications
towers and associated equipment buildings (unless such costs
have been reported on Form 4452) and costs of freestanding
billboards are examples of other structures that are to be
reported. The reported cost must include all costs capitalized
on your records. See STC Bulletin 8 of 2007.
Report of Statement Section O, Rental Information:
Landlords and tenants must provide rental information
relating to lease arrangements to which they are a party. Do
not report lease or rental arrangements relating to property
occupied for residential purposes. If you are a landlord
with multiple properties, contact the assessor to arrange an
acceptable alternative reporting method.
Grand Total Costs of Non-eligible Personal Property
Enter zero costs if appropriate.
Costs reported in this section are for tax years 2011
and 2012 only. Costs for years 2010 and prior and 2013
through 2020 should be reported in Part 3 of this Combined
Document.
Number 1: Complete Sections A through O. Add the totals
from Sections A through O to arrive at a Grand Total Cost
for these Sections.
Number 2: If you had cable television or utility assets on
December 31, 2020, complete the Cable Television and
Public Utility Personal Property Report (Form 3589), or
the Electric Distribution Cooperative Personal Property
Statement (Form 633), and carry the Total Original Cost for
years 2011 and 2012 from Form 3589 or Form 633 to line 2.
See the instructions to Form 3589. If you had wind energy
system assets as defined in MCL 211.8 (i), on December 31,
2020, complete the Wind Energy System Personal Property
Report (Form 4565) and carry the total original cost from
Form 4565 to line 3. See the instructions to Form 4565.
Number 3: If you had assets that qualified as “idle
equipment” or as “obsolete or surplus equipment” on
December 31, 2020, complete Idle, Obsolete and Surplus
Equipment (Form 2698), and carry the Total Original Cost
for years 2011 and 2012 from Form 2698 to line 3.
“Idle equipment” is equipment that is part of a discontinued
process and that has been disconnected and is stored in a
separate location. Assets are not “idle” if they are present
as standby equipment, are used intermittently or are used
on a seasonal basis. “Obsolete or surplus equipment” is
equipment that either requires rebuilding and is in the
possession of a rebuilding firm on December 31, 2020,
OR is being disposed of by means of an advertised sale
because it has been declared as surplus by an owner who
has abandoned a process or plant. Property that is part of a
process that has been temporarily suspended from operation
or which is being offered for sale with the expectation that
the process will be continued at the same location, does not
qualify for idle or obsolete and surplus reporting treatment.
Only property which would otherwise be reported in
Sections A through F on this Statement qualifies to be
reported as idle or obsolete and surplus equipment. For more
information, see instructions to Form 2698. Do not include
these assets elsewhere on this Statement. If you had cellular
(wireless) site assets on December 31, 2020, complete the
Cellular (Wireless) Site Equipment Personal Property
Report (Form 4452), and carry the Total Original Cost from
Form 4452 to line 4. See the instructions to Form 4452.
The full acquisition cost of idle and obsolete equipment that
is eligible manufacturing personal property must be reported
in Part 3, if it was first placed in service in 2010 and prior or
after 2012. There is no deduction for idle, obsolete, or surplus
equipment in the calculation of ESA liability.
Number 4: If you had assets that qualified as automotive
manufacturing personal property on December 31, 2020,
complete the Automotive Manufacturing Equipment
Personal Property Report (Form 4798) and carry the Total
Original Cost for years 2011 and 2012 from Form 4798 to
line 4.
Instructions for Part 3: Essential Services Assessment Statement Instructions
For further information, all State Tax Commission Bulletins
and Forms referenced in these instructions are available at
www.michigan.gov/ESA or www.michigan.gov/PPT.
Summary and Reporting Instructions for
Essential Services Assessment
Provide a yes or no answer to all questions. If a yes answer
is provided, the acquisition costs for that eligible personal
property must be reported as indicated by the instructions.
A list of all applicable certification numbers for this parcel
must be attached to this form.
Claimants filing Form 5278 to report EMPP that is not yet
eligible for the exemption should check the “zero acquisition
cost” box to indicate that they are willfully reporting no
acquisition costs in Part 3 of Form 5278. Parcels for which
no acquisition costs have been reported on an ESA return by
April 15, 2022, will have any EMPP exemption rescinded,
unless this box has been checked on Form 5278.
Instructions — Page 6
Check the leased personal property box only if Form 5467 is
attached to this Form 5278 when filed.
Number 1: Qualified new or previously existing personal
property exempt under MCL 211.9m or MCL 211.9n and that
was subject to an Industrial Facilities Exemption Certificate
(P.A. 198) that was in effect on or after December 31, 2012,
must be designated in this part including the certificate
number. Attach a copy of the IFT certificate or other official
documentation. IFT certificate numbers are assigned by the
State Tax Commission upon approval and consist of a four
digit year and a unique three-digit number, separated by a
dash. Certificates that have been amended by the State
Tax Commission may also include a letter (typically “a”)
following the seven digits.
NOTE: IFT certificates with a begin date after December
31, 2012, do not receive any benefit in the calculation of ESA
liability.
Number 2: Personal property subject to an MCL 211.9f
(P.A. 328) exemption that was in effect on or after December
31, 2012, and expired on or before December 30, 2020,
must be designated in this section including the certificate
number. Attach a copy of the P.A. 328 certificate or other
official documentation. P.A. 328 certificate numbers are
assigned by the State Tax Commission upon approval and
consist of a a unique three-digit number followed by a four
digit year, separated by a dash.
Number 3: Personal property that is exempt from the
Essential Services Assessment and either subject to or
exempt from the Alternative Essential Services Assessment
as a result of a resolution issued under provisions of MCL
211.1061 by the Michigan Strategic Fund beginning in 2016
(MCL 211.1059) must be designated in this part. Attach a
copy of the MSF resolution.
Number 4: Personal property subject to a Renaissance Zone
exemption must be designated in this part including the
name of the Renaissance Zone.
Report of Qualied New Personal Property
(MCL 211.9m) and Qualied Previously Existing
Personal Property (MCL 211.9n)
Report 100% of the Eligible Personal Property’s Fair Market
Value at the time of acquisition by the first owner for the
years 2010 and prior and the years 2013 through 2020.
There is a rebuttable presumption that the acquisition price
paid by the first owner for personal property, and any costs
of freight, sales tax, and installation, and other capitalized
costs, except capitalized interest, reflect the acquisition
cost. The cost of freight, sales tax and installation must
be included. Other capitalized costs, except capitalized
interest must be reported. Construction in Progress (CIP),
as defined in MCL 211.9m(8)(c), is reported on the separate
“Construction in Progress” line.
EMPP claimants should not adjust the fair market value
to address deductions related to valid IFT certificates,
Renaissance Zones, Construction in Progress, or the
property’s status as idle or obsolete equipment.
Report fair market value only for years highlighted (2011
and 2012) in which personal property is subject to an
extended IFT or extended P.A. 328 exemption. An IFT or
P.A. 328 may be extended only if the certificate was in
effect on or after December 31, 2012, AND expired prior
to December 31, 2020. An IFT or P.A. 328 certificate
that expires after December 31, 2020, is not extended and
acquisition cost new for years 2011 and 2012 should be
reported in Part 2 of this Combined Document. An IFT
certificate that went into effect after December 31, 2012, is
not eligible to be extended.
NOTE: If the EMPP claimed on this combined document
is approved by the local tax collecting unit, the information
reported on Form 5278 will be transmitted to the Michigan
Department of Treasury. By May 1, the Department of
Treasury shall generate an electronic statement for each
eligible claimant for calculation of the Essential Services
Assessment. This statement is available through the
Michigan Treasury Online (MTO) website at www.mto.
treasury.michigan.gov. To receive the EMPP exemption,
the eligible claimant is required to certify and electronically
pay the ESA tax liability shown on that certified statement.
This ESA Statement is only available online and will not be
mailed or otherwise transmitted to the claimant. Similarly,
no invoice or tax bill will be mailed or issued to EMPP
exemption claimants indicating the amount of ESA liability
due. To receive the EMPP exemption for 2021 and avoid
late penalties, each taxpayer is required to certify this ESA
Statement and pay the full ESA liability by August 15, 2021.
Payments not received by August 15 begin to accrue penalty
at the rate of 3% per month or part of a month to a maximum
of 27%. If 2021 is the claimant’s first assessment year, the
penalty shall be waived if the statement and full payment
are submitted by September 15. No waiver of late payment
penalty is available to claimants who filed in 2020 or prior.
In accordance with statutory requirements, an eligible
claimant can pay the ESA tax and any late payment penalty
by using MTO, Electronic Funds Transfer (EFT) credit,
or e-file no later than April 15, 2022. Payments cannot be
mailed to Treasury.
Detailed instructions on how to navigate MTO, as well as
additional information regarding the EMPP exemption, ESA
tax, and approved electronic filing and payment methods,
are available on the ESA Web site at www.michigan.gov/
ESA. Claimants and professionals providing services to
claimants are encouraged to sign up for the ESA listserv to
receive pertinent information regarding EMPP and ESA as
well as reminders of important dates.
The State Essential Services Assessment Act (P.A. 92
of 2014, as amended) requires taxpayers claiming an
EMPP exemption to file and certify an ESA statement
and electronically submit payment of their ESA liability
in full by August 15 to avoid late payment penalties. If a
certified statement and full payment (including late payment
penalties) are not received by April 15, 2022, Treasury is
required to rescind the claimant’s EMPP exemption.
NOTE: If an EMPP exemption is rescinded, the taxpayer
will become liable for taxes to the local tax collecting unit
and any extended P.A. 328 or extended IFT exemption shall
be rescinded by the State Tax Commission.
Instructions — Page 7
Denitions for Terms in Form 5278
Acquisition cost means the fair market value of personal
property at the time of acquisition by the first owner,
including the cost of freight, sales tax, and installation, and
other capitalized costs, except capitalized interest. There
is a rebuttable presumption that the price paid by the first
owner reflects the acquisition cost. MCL 211.1053(a)(i). For
property subject to an extended P.A. 198 exemption, an IFT
certificate effective before January 1, 2013, that is not yet
expired, or under an extended IFT, acquisition cost means
half of the fair market value of that personal property at the
time of acquisition by the first owner, including the cost
of freight, sales tax, and installation, and other capitalized
costs, except capitalized interest.
Construction in Progress means all personal property
that is part of that new facility if that personal property
will be predominantly used in industrial processing when
the facility becomes operational. For property that is
construction in progress, “acquired by” means the year the
property is first reported on the Combined Document in the
report of the fair market value and year of acquisition by the
first owner of qualified new personal property or qualified
previously existing personal property [MCL 211.1053(a)(ii)].
Direct Integrated Support is defined as:
(i) Research and development related to goods produced in
industrial processing and conducted in furtherance of that
industrial processing.
(ii) Testing and quality control functions related to goods
produced in industrial processing and conducted in
furtherance of that industrial processing.
(iii) Engineering related to goods produced in industrial
processing and conducted in furtherance of that
industrial processing.
(iv) Receiving or storing equipment, materials, supplies,
parts, or components for industrial processing, or scrap
materials or waste resulting from industrial processing,
at the industrial processing site or at another site owned
or leased by the owner or lessee of the industrial
processing site.
(v) Storing of finished goods inventory if the inventory was
produced by a business engaged primarily in industrial
processing and if the inventory is stored either at the site
where it was produced or at another site owned or leased
by the business that produced the inventory.
(vi) Sorting, distributing, or sequencing functions that
optimize transportation and just-in-time inventory
management and material handling for inputs to
industrial processing [MCL 211.9m(8)(b)].
Eligible Manufacturing Personal Property (EMPP) means
all personal property located on occupied real property if
that personal property is predominantly used in industrial
processing or direct integrated support. For personal property
that is construction in progress and part of a new facility
not in operation, EMPP means all personal property that
is part of that new facility if that personal property will be
predominantly used in industrial processing when the facility
becomes operational. Personal property that is not owned,
leased or used by the person who owns or leases occupied
real property where the personal property is located is not
EMPP unless the personal property is located on the occupied
real property to carry on a current on-site business activity.
Personal property that is placed on occupied real property
solely to qualify the personal property for an exemption under
9m or 9n is not EMPP. For additional information regarding
EMPP, refer to MCL 211.9m and the State Tax Commission’s
“Assessor’s Guide to Eligible Manufacturing Personal
Property and ESA” [MCL 211.9m(8)(c)].
Eligible Personal Property (for purposes of the Essential
Services Assessment) means personal property exempt
under MCL 211.9m or 211.9n; personal property that is
EMPP (defined in MCL 211.9m) that is exempt under a P.A.
328 (MCL 211.9f) which was approved in 2014, unless the
application for the exemption was filed with the eligible
local assessing district or Next Michigan development
corporation before August 5, 2014, and the resolution
approving the exemption states that the project is expected
to have total new personal property of over $25,000,000.00
within 5 years of the adoption of the resolution by
the eligible local assessing district or Next Michigan
development corporation; Personal Property subject to an
extended industrial facilities exemption certificate under
section MCL 207.561a (IFT); or Personal Property subject
to an extended exemption under MCL 211.9f(8) (P.A. 328
Exemption) [MCL 211.1053(e)].
Essential Services Assessment Act is an act to levy a
tax on eligible manufacturing personal property exempt
under MCL 211.9m or MCL 211.9n; to provide for the
administration, collection, and distribution of the tax;
to impose certain duties on persons and certain state
departments; to impose penalties; and to repeal acts and
parts of acts. (MCL 211.1051 - 211.1061)
Extended P.A. 328 Certificate is a P.A. 328 certificate
that was in effect on or after December 31, 2012, and has
a certificate end date prior to the personal property subject
to the certificate qualifying for the exemption under
MCL 211.9m or MCL 211.9n. For 2021, extended P.A.
328 certificates are those that were in effect on or after
December 31, 2012, and expired in 2013, 2014, 2015, 2016,
2017, 2018, 2019, or 2020
To be extended, a P.A. 328 certificate must have been valid
for the 2020 assessment year, either because it expired in
2020 or it was extended and EMPP reported in 2020.
Extended IFT Certificate is an IFT certificate that was in
effect on or after December 31, 2012, and has a certificate
end date prior to the personal property subject to the
certificate qualifying for the exemption under MCL 211.9m
or MCL 211.9n. For 2021, extended IFT certificates are
Instructions — Page 8
those that were in effect on or after December 31, 2012, and
expired in 2013, 2014, 2015, 2016, 2017, 2018, 2019, or 2020.
To be extended, an IFT certificate must have been valid for
the 2020 assessment year, either because it expired in 2020
or it was extended and EMPP reported in 2020.
Industrial Processing is defined in MCL 205.54t and
MCL 205.94o: “Industrial processing” means the activity
of converting or conditioning tangible personal property
by changing the form, composition, quality, combination,
or character of the property for ultimate sale at retail or for
use in the manufacturing of a product to be ultimately sold
at retail. Industrial processing begins when tangible personal
property begins movement from raw materials storage to
begin industrial processing and ends when finished goods
first come to rest in finished goods inventory storage.
Industrial processing does not include the generation,
transmission, or distribution of electricity for sale.
NOTE: Utility personal property (as defined in
MCL.211.34c) is not used in industrial processing or direct
integrated support.
Occupied Real Property is defined by statute in MCL
211.9m(8)(q) as:
(i) A parcel of real property that is entirely owned, leased,
or otherwise occupied by a person claiming an exemption
under section 9m or 9n.
(ii) Contiguous parcels of real property that are entirely
owned, leased, or otherwise occupied by a person
claiming an exemption under section 9m or 9n and that
host a single, integrated business operation engaged
primarily in industrial processing, direct integrated
support, or both. A business operation is not engaged
primarily in industrial processing, direct integrated
support, or both if it engages in significant business
activities that are not directly related to industrial
processing or direct integrated support. Contiguity is not
broken by a boundary between local tax collecting units,
a road, a right-of-way, or property purchased or taken
under condemnation proceedings by a public utility
for power transmission lines if the 2 parcels separated
by the purchased or condemned property were a single
parcel prior to the sale or condemnation. As used in this
subparagraph, “single, integrated business operation”
means a company that combines 1 or more related
operations or divisions and operates as a single business
unit.
(iii) The portion of a parcel of real property that is owned,
leased, or otherwise occupied by a person claiming the
exemption under section 9m or 9n or by an affiliated
person.
Qualified New Personal Property is defined as personal
property that was initially placed in service in this state or
outside of the state after December 31, 2012, or that was
construction in progress on or after December 31, 2012, that
had not been placed in service in this state or outside of this
state before 2013 and is eligible manufacturing personal
property [MCL 211.9m(8)(j)].
Qualified Previously Existing Personal Property means
personal property that was first placed in service within this
state or outside of this state more than 10 years before the
current calendar year and is eligible manufacturing personal
property [MCL 211.9m(8)(c)].
Instructions — Page 9
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Form 2021: Eligible Manufacturing Personal Property Tax Exemption (Charter Township of Waterford)

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Completed 16 March 2021

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