The original filing deadline in February has been extended to Tuesday, May 31, to file Form 5278 or resubmit a Form 5278 that had been denied due to an incomplete form. The form must be received by the local assessor's office by the deadline and postmarks are not acceptable.
For those that have filed Form 5278, "Affidavit and Statement for Eligible Manufacturing Personal Property and Essential Services Assessment (ESA)", the local assessor's office has transmitted this information to the Department of Treasury to create an Electronic ESA Statement (Statement). The ESA is a State-specific tax on eligible personal property owned by, leased to or in possession of an eligible claimant as of Dec. 31 of the year immediately preceding the assessment year. The tax is collected by the State, not the local assessor's office. The Statement will be available for taxpayer viewing as of May 1 via the Michigan Treasury On-Line System (MTO).
Recently in Washington D.C., Jeff Solis PEO Practice Leader at UHY LLP, and other industry leaders met with representatives from the IRS and the US Treasury to address details included in the Small Business Efficiency Act (SBEA).
Michigan's personal property tax reform continues Jan. 1, 2016, with the most significant changes for taxpayers with eligible manufacturing property.
As of Dec. 31, 2015, the General Property Tax Act provides an exemption from tax for qualified new personal property and qualified previously existing personal property for eligible manufacturing personal property (EMPP). EMPP is defined as "...all personal property located on occupied real property if that personal property is predominantly (greater than 50 percent) used in industrial processing or direct integrated support."
The US Senate approved legislation, which the House already passed, to extend for one year more than 50 tax provisions that had expired at the end of 2013. The pending retroactive enactment of this legislation will impact the 2014 taxes for many individuals and businesses.
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