Michigan Manufacturers Must Certify and Pay Essential Services Assessment by August 15

Nolan Felsing

Eligible Manufacturing Personal Property (EMPP) claimants need to certify and pay the Essential Services Assessment (ESA) no later than August 15, 2017.

Essential Service Assessment (ESA) statements were released on the Michigan Treasury Online (MTO) website on May 1, 2017. If you are a first-year filer, a link to step-by-step instructions is provided below to walk you through the process of setting up an account. Once you log onto MTO, you will be able to view your ESA statement, view correspondence from the Treasury, make changes to your statement, certify your statement, and pay your ESA liability. The link below will walk you through how to complete all of these steps.

Certification and payment are due by August 15, 2017. There is a one percent late fee for each week that is overdue with a maximum of a five percent penalty. If not paid by October 15, 2017, the Eligible Manufacturing Personal Property (EMPP) exemption will be rescinded for the following year, and the taxpayer will have to file Form 632, which could result in higher taxes. A statute provides a waiver of late payment penalty for first-year filers if the ESA statements and full payment are electronically submitted by September 15, 2017. ESA payments must be made electronically. Any checks mailed to the State will be refunded to the filer, and will not be applied to any ESA liability or penalty.

Eligible claimants may amend a previously certified ESA statement through MTO by September 15, 2017. An amendment includes changes in acquisition costs reported and adding or removing a parcel. Any increase in ESA liability resulting from any amendment made to a certified ESA statement will be subject to the one percent per week late payment penalty. 

Step-by-step process for viewing, certifying, and paying ESA on MTO as well as setting up an MTO profile are available to view on the Michigan.gov website.

If you need assistance, contact your Yeo & Yeo professional.

Nolan Felsing

Nolan Felsing


Nolan Felsing, CPA, provides tax and management advisory services with an emphasis on manufacturing companies. He is a member of the firm’s Manufacturing Services Group. He is a senior accountant in Yeo & Yeo's Midland office. Contact Nolan via email at nolfel@yeoandyeo.com or call 989.631-6060.