Tax & Accounting Blog

ESA Payment Reminder

Blog, Federal Tax, ONESOURCE, ONESOURCE Property Tax August 4, 2017

Authored by Ruth Jeremiah

Thomson Reuters wants to give all our customers important information about the Essential Services Assessment (ESA). Don’t know what that is? Not to worry because we have information on that too! Did you know that ESA is a specific tax replacement for Personal Property Tax for Eligible Personal Property? The Essential Services Assessment (ESA) is a state-specific tax on eligible personal property owned by, leased to, or in the possession of an eligible claimant on December 31 of the year immediately preceding the assessment year. MCL 211.1055(2). Most taxpayers will continue to pay Ad Valorem and/or IFT taxes in addition to the ESA specific tax until the phase out is complete in 2023.

Those who pay property taxes to MI make sure to make the ESA payment on time! Because penalties never depreciate over time, August 15, 2017 is the final day to submit the ESA statement along with the full payment without incurring a penalty. If not a late payment penalty of 1% of outstanding ESA liability, not to exceed 5%, incurs. Failure to electronically pay ESA liability and this late payment penalty in full by October 15, 2017 will result in rescission of the EMPP exemption on affected parcels. To avoid those penalties taxpayers can now access the ONESOURCE Property Tax System (OPT). OPT is an approved software developer of MI DOT so customers have the option of certifying the electronic statement.

For more information about the ESA tax contact the Michigan Tax Department through these means: