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Michigan Department of Treasury                                                                       Parcel Number
5278 (Rev. 09-22)
                                                                                                                                                               2023
Eligible Manufacturing Personal Property Tax Exemption Claim, and Report of Fair Market 
Value of Qualified 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.
Qualified new and qualified previously existing personal property (as defined 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 qualified personal property 
is located, postmarked no later than February 21, 2023. Failure to complete the required certification, 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 significant 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 certification, and report of fair market 
value. A separate Form 5278 must be filed for each parcel number.
Taxpayer Information
Federal Employer Identification 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 fields below. If located within a township but not within a village, complete the Township and 
County fields. If the property is located within a village, complete the Township, Village, and County fields.
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, officer, 
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 defined 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 qualifies 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 filed 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, 2023, and that failure to pay ESA liability and applicable late payment penalty via ACH, EFT, or e-file by the statutory deadline 
of April 15, 2024, 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

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5278, Page 2

PART 2: Report of Fair Market Value (Acquisition Cost) of Qualified New and Previously Existing Personal Property
Qualified new personal property and qualified 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. See instructions, page 2.

Check if there is zero acquisition cost reported in the total in Part 2, 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 filed.
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 filed 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.

1. Is the personal property reported on this Combined Document subject to an Industrial Facilities Exemption Certificate
(P.A. 198 of 1974) that was in effect on or after December 31, 2012? If yes, attach a copy of the IFT certificate ............... Yes No
IFT Certificate Certificate Begin Date Certificate End Date
Number: Y Y Y Y —
NOTE: The IFT Certificate Number is typically seven digits, although some may also have an additional character that is entered in the dotted
field. 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 effect on or after December 31, 2012, and expired on or before December 30, 2022?
If yes, attach a copy of the P.A. 328 certificate ...................................................................................................................... Yes No
P.A. 328 Certificate Begin Date Certificate End Date
Certificate Number: — Y Y Y Y

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 Certificate Certificate Begin Date Certificate End Date
Number: Y Y Y Y —

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 Qualified New Personal Property (MCL 211.9m) and Qualified 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 first 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 defined
in MCL 211.9m(6)(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)] Year Placed in Service Acquisition Cost [MCL 211.1053(a)(i)]
Construction in Progress 2017
2022 2016
2021 2015
2020 2014
2019 2013
2018 2012 and Prior

TOTAL ACQUISITION COST FOR ALL YEARS LISTED HERE IN SECTION B

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                                           Instructions for Form 5278
Eligible Manufacturing Personal Property Tax Exemption Claim, and Report of Fair Market 
Value of Qualified New and Previously Existing Personal Property (Combined Document)

NOTE: A section on term definitions is included at the end of these instructions.

                                                                Leasing companies are not eligible to receive the exemption 
What’s New for 2023
                                                                for qualified new personal property and qualified previously 
•  All  qualified  new and  previously  existing  personal      existing personal property and may not use this Combined 
property first placed in service inside or outside of the state Document. With respect to personal property that is the 
is now exempt from local property taxation and is instead       subject of a lease agreement, regardless of whether the 
subject to the State Essential Services Assessment (ESA).       agreement constitutes a lease for financial or tax purposes, 
Eligible Manufacturing Personal Property (EMPP) first           if the personal property is or will be Eligible Manufacturing 
placed in service in all years is now eligible and acquisition  Personal Property, the lessee and lessor may elect that the 
costs  should be reported in Part 2, Section B, of this         lessee report the leased personal property on this Combined 
Combined Document.                                              Document and be responsible for any Essential Services 
•  Because February 20, 2023, falls on a state holiday,         Assessment liability that results.
delivery by the United States Postal Service is timely if       To elect for the lessee to report the leased personal 
postmarked on or before February 21, 2023.                      property, at least some, but not necessarily all, personal 
•  Eligible claimants who did not submit Form 5278 to the       property subject to the lease agreement must be Eligible 
assessor of the local unit in which the property is located by  Manufacturing Personal Property as defined in MCL 211.9m 
February 21 may submit a completed Form 5278 directly to        and MCL 211.9n. The Election of Lessee Report of Eligible 
the March Board of Review of the local unit in which the        Manufacturing Personal Property (Form 5467) must also be 
property is located prior to final adjournment of their March   attached to this Combined Document at the time it is filed 
meeting.                                                        with the local tax collecting unit.
•  Full  electronic  payment  of  the  2023 Essential  Services If election is made, property subject to the lease agreement 
Assessment must be received no later than August 15,            must be reported on Part 2 of this Combined Document, as 
2023. If payment is not received in full by August 15, a late   applicable.
payment penalty at a rate of 3% of the unpaid balance per 
month, up to a maximum of 27%, will incur. In calculating       All State Tax Commission Bulletins and Forms referenced 
the penalty, a partial month is considered a whole month and    in these instructions can be accessed at www.michigan.gov/
will not be  prorated based on the  day the  late  payment  is  PPT or www.michigan.gov/ESA.
received by the Department of Treasury.                         Part 1: Claim of Eligible Manufacturing Personal 
•  If electronic payment of the 2023 Essential Services         Property
Assessment and late payment penalty is not received in 
full by April  15, 2024, the  Department  of Treasury is        This section must be filled out in its entirety in order to 
required to rescind the claimant’s eligible personal property   qualify for the exemption.  This includes the  local  unit 
exemption(s).                                                   information, property owner information and certification. 
                                                                Partially completed forms  may not be accepted by the 
General Instructions                                            local unit and your failure to fully complete the Combined 
                                                                Document may result in denial of the exemption.
This Combined Document may only be used by those 
claiming the Eligible Manufacturing Personal Property           Personal Property Location Information: The parcel 
(EMPP) exemption. Taxpayers should review the Assessor’s        number for the personal property being claimed as EMPP 
Guide  to Eligible  Manufacturing Personal  Property and        must be provided. If no number exists, contact the assessor 
ESA and ESA Topics available online at  www.michigan.           of  the  local  unit  in which  the  personal  property  is located 
gov/ESA for more information on what is EMPP. Claimants         and request  that  a  number be assigned. List  the  local  unit 
must  annually  complete  this form  in  its entirety for  each of government in which the property is assessed. Only one 
parcel of eligible personal property and file it with the local field,  in  addition  to  the  County  field,  should  be  entered 
unit where the personal property is located by February         unless the claimed personal property is located in a village, 
21, 2023. Eligible  claimants who did not  file  by February    in which case both the village and township should be listed. 
21, 2023, may file Form 5278 to the 2023 March Board of         Certification of the Form  indicates understanding that 
Review prior to final adjournment of their March meeting.       the certification and payment of ESA must be performed 
Taxpayers not claiming the EMPP  exemption should not           electronically. No tax bill will be sent by Treasury and no 
use this Combined Document, but should file the Personal        ESA return or payment will be accepted by mail.
Property  Statement (Form  632) with their local  tax 
collecting unit.

                                           Instructions — Page 1

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Instructions for Part 2: Essential Services Assessment Statement Instructions
For further information, all State Tax Commission Bulletins acquisition price paid by the first owner for personal
and Forms referenced in these instructions are available at property, and any costs of freight, sales tax, and installation,
www.michigan.gov/ESA or www.michigan.gov/PPT. and other capitalized costs, except capitalized interest,
reflect the acquisition cost. The cost of freight, sales tax
Summary and Reporting Instructions for and installation must be included. Other capitalized costs,
Essential Services Assessment except capitalized interest must be reported. Construction in
Provide a yes or no answer to all questions. If a yes answer Progress (CIP), as defined in MCL 211.9m(86)(c), is reported
is provided, the acquisition costs for that eligible personal on the separate “Construction in Progress” line.
property must be reported as indicated by the instructions. EMPP claimants should not adjust the fair market value
A list of all applicable certification numbers for this parcel to address deductions related to valid IFT certificates,
must be attached to this form. Renaissance Zones, Construction in Progress, or the
Check the leased personal property box only if Form 5467 is property’s status as idle or obsolete equipment.
attached to this Form 5278 when filed. NOTE: If the EMPP claimed on this combined document
Number 1: Qualified new or previously existing personal is approved by the local tax collecting unit, the information
property exempt under MCL 211.9m or MCL 211.9n and that reported on Form 5278 will be transmitted to the Michigan
was subject to an Industrial Facilities Exemption Certificate Department of Treasury. By May 1, the Department of
(P.A. 198) that was in effect on or after December 31, 2012, Treasury shall generate an electronic statement for each
must be designated in this part including the certificate eligible claimant for calculation of the Essential Services
number. Attach a copy of the IFT certificate or other official Assessment. This statement is available through the
documentation. IFT certificate numbers are assigned by the Michigan Treasury Online (MTO) website at www.mto.
State Tax Commission upon approval and consist of a four treasury.michigan.gov. To receive the EMPP exemption,
digit year and a unique three-digit number, separated by a the eligible claimant is required to certify and electronically
dash. Certificates that have been amended by the State pay the ESA tax liability shown on that certified statement.
Tax Commission may also include a letter (typically “a”) This ESA Statement is only available online and will not be
following the seven digits. mailed or otherwise transmitted to the claimant. Similarly,
no invoice or tax bill will be mailed or issued to EMPP
NOTE: IFT certificates with a begin date after December exemption claimants indicating the amount of ESA liability
31, 2012, do not receive any benefit in the calculation of ESA due. To receive the EMPP exemption for 2023 and avoid
liability. late penalties, each taxpayer is required to certify this ESA
Number 2: Personal property subject to an MCL 211.9f Statement and pay the full ESA liability by August 15, 2023.
(P.A. 328) exemption that was in effect on or after December Payments not received by August 15 begin to accrue penalty
31, 2012, and expired on or before December 30, 2022, at the rate of 3% per month or part of a month to a maximum
must be designated in this section including the certificate of 27%. If 2023 is the claimant’s first assessment year, the
number. Attach a copy of the P.A. 328 certificate or other penalty shall be waived if the statement and full payment
official documentation. P.A. 328 certificate numbers are are submitted by September 15. No waiver of late payment
assigned by the State Tax Commission upon approval and penalty is available to claimants who filed in 2022 or prior.
consist of a a unique three-digit number followed by a four In accordance with statutory requirements, an eligible
digit year, separated by a dash. claimant can pay the ESA tax and any late payment penalty
Number 3: Personal property that is exempt from the by using MTO, Electronic Funds Transfer (EFT) credit,
Essential Services Assessment and either subject to or or e-file no later than April 15, 2024. Payments cannot be
exempt from the Alternative Essential Services Assessment mailed to Treasury.
as a result of a resolution issued under provisions of MCL Detailed instructions on how to navigate MTO, as well as
211.1061 by the Michigan Strategic Fund beginning in 2016 additional information regarding the EMPP exemption, ESA
(MCL 211.1059) must be designated in this part. Attach a tax, and approved electronic filing and payment methods,
copy of the MSF resolution. are available on the ESA Web site at www.michigan.gov/
Number 4: Personal property subject to a Renaissance Zone ESA. Claimants and professionals providing services to
claimants are encouraged to sign up for the ESA listserv to
exemption must be designated in this part including the
receive pertinent information regarding EMPP and ESA as
name of the Renaissance Zone.
well as reminders of important dates.
Report of Qualified New Personal Property The State Essential Services Assessment Act (P.A. 92
(MCL 211.9m) and Qualified Previously Existing of 2014, as amended) requires taxpayers claiming an
Personal Property (MCL 211.9n) EMPP exemption to file and certify an ESA statement
and electronically submit payment of their ESA liability
Report 100% of the Eligible Personal Property’s Fair
in full by August 15 to avoid late payment penalties. If a
Market Value at the time of acquisition by the first owner
certified statement and full payment (including late payment
for all years. There is a rebuttable presumption that the

Instructions — Page 2

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penalties) are not received by April 15, 2024, Treasury is       NOTE: If an EMPP exemption is rescinded, the  taxpayer 
required to rescind the claimant’s EMPP exemption.               will become liable for taxes to the local tax collecting unit.

                                 Definitions for Terms in Form 5278
Acquisition  cost  means  the  fair  market  value of  personal  processing or direct integrated support. For personal property 
property at the time of acquisition by the first owner,          that is construction in progress and part of a new facility 
including the cost of freight, sales tax, and installation, and  not in operation, EMPP means all personal property that 
other capitalized costs, except capitalized interest. There is a is part of that new facility if that personal property will be 
rebuttable presumption that the price paid by the first owner    predominantly used in industrial processing when the facility 
reflects the acquisition cost. MCL 211.1053(a)(i). For property  becomes operational. Personal property that is not owned, 
subject to an extended P.A. 198 exemption, an IFT certificate    leased or used by the person who owns or leases occupied 
effective before January 1, 2013, that is not yet expired,       real property where the personal property is located is not 
acquisition cost means half of the fair market value of that     EMPP unless the personal property is located on the occupied 
personal property at the time of acquisition by the first owner, real property to carry on a current on-site business activity. 
including the cost of freight, sales tax, and installation, and  Personal property that is placed on occupied real property 
other capitalized costs, except capitalized interest.            solely to qualify the personal property for an exemption under 
                                                                 9m or 9n is not EMPP. For additional information regarding 
Construction in Progress means all personal property 
                                                                 EMPP, refer to MCL 211.9m and the State Tax Commission’s 
that  is part of that new facility if that personal  property 
                                                                 “Assessor’s Guide to Eligible Manufacturing Personal 
will be predominantly used in industrial processing when 
                                                                 Property and ESA” [MCL 211.9m(6)(c)].
the facility becomes operational. For property that is 
construction in progress, “acquired by” means the year the       Eligible Personal Property (for purposes of the Essential 
property is first reported on the Combined Document in the       Services Assessment) means personal property exempt 
report of the fair market value and year of acquisition by the   under MCL  211.9m  or 211.9n;  personal  property that  is 
first owner of qualified new personal property or qualified      EMPP (defined in MCL 211.9m) that is exempt under a P.A. 
previously existing personal property [MCL 211.1053(a)(ii)].     328 (MCL 211.9f) which was approved in 2014, unless the 
                                                                 application for the  exemption was filed with the  eligible 
Direct Integrated Support is defined as:
                                                                 local  assessing district  or Next  Michigan development 
(i)  Research and development related to goods produced in       corporation before August 5, 2014, and the resolution 
industrial processing and conducted in furtherance of that       approving the exemption states that the project is expected 
industrial processing.                                           to have total new personal property of over $25,000,000.00 
                                                                 within 5 years of the  adoption of the  resolution by 
(ii)  Testing and quality control functions related to goods 
                                                                 the  eligible  local  assessing  district  or  Next  Michigan 
produced  in  industrial  processing  and  conducted  in 
                                                                 development  corporation;  Personal  Property  subject  to  an 
furtherance of that industrial processing.
                                                                 extended industrial facilities exemption certificate under 
(iii)  Engineering related to goods produced in industrial       section MCL 207.561a (IFT); or Personal Property subject 
processing and conducted in furtherance  of that                 to an extended exemption under MCL 211.9f(8) (P.A. 328 
industrial processing.                                           Exemption) [MCL 211.1053(e)].
(iv)  Receiving or storing equipment, materials, supplies,       Essential  Services Assessment Act is an act  to levy a 
parts, or components for industrial processing, or scrap         tax on eligible manufacturing personal property exempt 
materials or waste resulting from industrial processing,         under MCL 211.9m or MCL 211.9n; to provide for the 
at the industrial processing site or at another site owned       administration, collection, and distribution of the tax; 
or leased by the owner or lessee of the industrial               to impose certain duties on persons and certain state 
processing site.                                                 departments;  to  impose  penalties;  and  to  repeal  acts and 
                                                                 parts of acts. (MCL 211.1051 - 211.1061)
(v)  Storing of finished goods inventory if the inventory was 
produced by a  business engaged primarily  in industrial         Industrial  Processing  is defined  in  MCL  205.54t  and 
processing and if the inventory is stored either at the site     MCL 205.94o: “Industrial processing” means  the activity 
where it was produced or at another site owned or leased         of converting or conditioning tangible personal property 
by the business that produced the inventory.                     by changing the form, composition, quality, combination, 
                                                                 or character of the property for ultimate sale at retail or for 
(vi)  Sorting, distributing, or sequencing functions that 
                                                                 use in the manufacturing of a product to be ultimately sold 
optimize transportation and just-in-time inventory 
                                                                 at retail. Industrial processing begins when tangible personal 
management and material handling for inputs to 
                                                                 property begins movement from raw materials storage to 
industrial processing [MCL 211.9m(6)(b)].
                                                                 begin industrial processing and ends when finished goods 
Eligible Manufacturing Personal Property (EMPP) means            first  come  to  rest  in  finished  goods inventory  storage. 
all personal property located on occupied real property if       Industrial  processing does not  include  the  generation, 
that personal property is predominantly used in industrial       transmission, or distribution of electricity for sale.
                                                      Instructions — Page 3

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NOTE: Utility personal  property (as defined in 
MCL.211.34c) is not used in industrial processing or direct 
integrated support.
NOTE:  Personal  property  used  in  the  generation, 
transmission, or distribution of electricity for sale is not 
eligible manufacturing personal property.
Occupied Real Property is defined by statute in MCL 
211.9m(6)(g) 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(6)(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 211.9n(5)(c)].

                                         Instructions — Page 4

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