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Michigan Department of Treasury                                                                           Parcel Number 
5278 (Rev. 07-21) 
                                                                                                                                                                    2022 
Eligible Manufacturing Personal Property Tax Exemption Claim, Personal Property Statement, 
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 bedelivered to  the assessor of the local unit of government in which the qualified personal property 
is located no later than February 22, 2022. 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, personal property 
statement, 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, 2022, 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, 2023, 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: 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 in any year before or after 2012. If all reported
property was acquired only in 2012, Form L-4175 should be filed 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/ If yes, enter Total Original Cost
Water Pollution Control Facilities and/or Wind/Water Energy Conversion
Devices? ............................................................................................................... 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 .29 2012 .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 .36 2012 .08
TOTAL B1 B2 TOTAL F1 F2
Section D: Office, Electronic Video and Testing Equipment Section G: Other Owned Assessable Personal Property
Year in Service Assessor Calculations (attach separate description)
2012 .31 Year in Service Assessor Calculations
TOTAL D1 D2 2012
TOTAL G1 G2

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5278, Page 3
Section I: Qualified Personal Property of a Qualified Business per MCL 211.8a(6)(c)
Year in Service Taxpayer Original Costs New Assessor Calculations Qualified Business Name
2012
TOTAL I1 I2
Section J and K: Leased and Other Personal Property in Your Possession Which is Not Qualified Personal Property
Age (estimate if Selling Price New
Name and Address of Owner Description of Equipment necessary) (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 fixed asset records. Any personal property reported in this
Section should not be reported elsewhere on this Statement.
True Cash Value
Year in Service Detailed Description Original Costs STC Multiplier Assessor’s Calculations

Total Cost Incurred M1
Section N: All Freestanding Signs and Billboards
True Cash Value
Address or Location of Sign or Billboard Year Originally Built Total Capitalized Cost 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? 3. Date current lease will expire, if other than a month-to-month tenancy 4. Monthly Rental $
Yes No
5. Are there options to renew the lease? 6. Expenses (e.g. taxes, electric, gas, etc.) paid by the tenant 7. Square feet of space occupied by tenant
Yes No

Note to Assessor: Certain buildings and structures on leased land (but not including freestanding Assessor Calculated
signs and billboards) must be assessed on the real property roll. See Bulletin 1 of 2003. 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 2012
on Forms 633, 3589 and 4565. (Include copy.)
3.Total cost of Idle or Obsolete or Surplus Equipment and
Cellular Site Equipment for 2012 on Forms 2698 and 4452.
(Include copy.)
4.Total cost of Automotive Manufacturing Equipment for 2012 on
Form 4798. (Include copy.)
GRAND TOTALS
ASSESSOR’S ADJUSTMENT(S)
TRUE CASH VALUE
ASSESSED VALUE (50% OF TCV)

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5278, Page 4
PART 3: 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. 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 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.
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 definitions in Part 5) should be reported in 2012 of Part 3 of the Combined Document.
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, 2021?
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(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
2021
2020
2019
2018
2017
2016
2015 * Acquisition Cost for 2012 should only be reported in Part 3 if an
2014 Begin extended Date IFTbefore or extended December P.A. 31, 328 2012,certificate AND End with Date a Certificatebefore

2013 December 31, 2021, is reported in Section A above. Acquisition
*2012 Note for 2012 Costs for 2012 for personal property subject to an extended IFT
should also be reported in Part 2. See instructions for the rules
2011 and Prior regarding IFT, extended IFT, P.A. 328, or an extended P.A. 328
TOTAL certificate reporting.

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Instructions for Form 5278
Eligible Manufacturing Personal Property Tax Exemption Claim, Personal Property Statement,
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.

What’s New for 2022 22, 2022, may file Form 5278 to the 2022 March Board of
Review prior to final adjournment of their March meeting.
• Qualified new and previously existing personal property Taxpayers not claiming the EMPP exemption should not
first placed in service inside or outside of the state in either use this Combined Document, but should file the Personal
2011 or 2021 is now exempt from local property taxation and Property Statement (Form 632) with their local tax
is instead subject to the State Essential Services Assessment collecting unit.
(ESA). Eligible Manufacturing Personal Property (EMPP) Leasing companies are not eligible to receive the exemption
first placed in service in all years but 2012 is now eligible for qualified new personal property and qualified previously
and acquisition costs should be reported in Part 3, Section B, existing personal property and may not use this Combined
of this Combined Document. Document. With respect to personal property that is the
• Acquisition costs for 2012 should be reported in Part 3, subject of a lease agreement, regardless of whether the
Section B, only if the property is subject to an extended IFT agreement constitutes a lease for financial or tax purposes,
or extended P.A. 328 certificate. Any property reported for if the personal property is or will be Eligible Manufacturing
2012 in Part 3, Section B, must also be reported in Part 2 of Personal Property, the lessee and lessor may elect that the
Form 5278. lessee report the leased personal property on this Combined
• Because February 20, 2022, falls on a Sunday and Document and be responsible for any Essential Services
February 21, 2022, falls on a state holiday, delivery by the Assessment liability that results.
United States Postal Service is timely if postmarked on or
To elect for the lessee to report the leased personal
before February 22, 2022.
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 22 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 2022 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 and/or Part 3 of this Combined
2021. If payment is not received in full by August 15, a late
Document, as 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. Other forms that are required to be filed with this Statement
• If electronic payment of the 2021 Essential Services are required to be completed only for personal property
Assessment and late payment penalty is not received in placed in service in 2012. These forms are:
full by April 15, 2023, the Department of Treasury is • Form 633, Electric Distribution Cooperative Personal
required to rescind the claimant’s eligible personal property Property Statement.
exemption(s). • Form 3589, Cable Television and Utility Personal
General Instructions Property Report .
• Form 4565, Wind Energy System Report.
This Combined Document may only be used by those
claiming the Eligible Manufacturing Personal Property • Form 2698, Idle Equipment, Obsolete Equipment, and
(EMPP) exemption. Taxpayers should review the Assessor’s Surplus Equipment Report.
Guide to Eligible Manufacturing Personal Property and • Form 4452, Cellular (Wireless) Site Equipment Personal
ESA and ESA Topics available online at www.michigan. Property Report.
gov/ESA for more information on what is EMPP. Claimants • Form 4798, Automotive Manufacturing Equipment
must annually complete this form in its entirety for each Personal Property Report.
parcel of eligible personal property and file it with the local • Form 5467, Election of Lessee Report of Eligible
unit where the personal property is located by February Manufacturing Personal Property.
22, 2022. Eligible claimants who did not file by February

Instructions — Page 1

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Part 1: Claim of Eligible Manufacturing Personal               must be provided. If no number exists, contact the assessor 
Property                                                       of  the  local  unit  in which  the  personal  property  is located 
                                                               and request  that  a  number be assigned. List  the  local  unit 
This section must be filled out in its entirety in order to    of government in which the property is assessed. Only one 
qualify for the exemption.  This includes the  local  unit     field,  in  addition  to  the  County  field,  should  be  entered 
information, property owner information and certification.     unless the claimed personal property is located in a village, 
Partially completed forms  may not be accepted by the          in which case both the village and township should be listed. 
local unit and your failure to fully complete the Combined     Certification of the Form  indicates understanding that 
Document may result in denial of the exemption.                the certification and payment of ESA must be performed 
Personal Property Location Information: The parcel             electronically. No tax bill will be sent by Treasury and no 
number for the personal property being claimed as EMPP         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                                   5278 with the assessor of every Michigan assessment 
                                                               jurisdiction in which you had Eligible Manufacturing 
Generally, the instructions for completing the Statement       Personal Property on December 31, 2021. Further, you are 
in Part 2 are the same as the instructions that have been      required to report all tangible personal property in your 
used in the Personal Property Statement (Form 632).            possession in this location even if the property has been 
Attach additional  pages if there  is insufficient  space  to  fully  expensed  or  depreciated for  federal  income  tax or 
report on the Combined Document.                               financial accounting purposes. If you answer “No” to this 
Summary Question 1: “Special Tools” are exempt from            question, attach a detailed explanation. 
taxation,  pursuant  to  MCL  211.9b.  If  you  are  excluding Summary Question 3: The  purpose  of this question  is to 
“special tools” from your statement, you must check “Yes”      determine whether you are a party to a contract relative to 
and insert the amount of original cost excluded. (If you do    personal property located in this jurisdiction on December 
not have exempt special tools but have pollution control or    31,  2021,  that  you  have  not  reported  on  this statement, 
wind/water energy conversion devices, check the “Yes” box      perhaps because of your belief that another party to 
but insert “N/A” in the space provided for reporting the cost  the contract is the proper party to report. This includes 
of exempt special tools.) “Special tool” means a finished or   situations where  you  believe  you hold  only a  security 
unfinished device such as a die, jig, fixture, mold, pattern,  interest  in personal  property, in spite  of the  fact  that  the 
special gauge, or similar device that is used, or is being     contract is labeled a “lease.” If you answered “yes” to this 
prepared for use, to manufacture a product and that cannot     question, attach a rider that includes  the name(s) of the 
be used to manufacture another product without substantial     interest holder(s), the nature of your interest, a description 
modification of the device. As used herein, a “product”        of the  equipment, the  year the  equipment  was originally 
can be a part, a special tool, a component, a subassembly      placed in service, its original selling price when new and 
or completed goods. “Special tools” do not include devices     the address where the property was located on December 31, 
that differ in character from dies, jigs, fixtures, molds,     2021. “Conditional sale” leased equipment must be reported 
patterns, or special gauges. Machinery or equipment, even      by the lessor. 
if customized, and even if used in conjunction with special 
tools, is not a “special tool.”                                The valuation multipliers contained in Sections A through 
                                                               F on page 2 are intended to be applied to the acquisition 
NOTE: Exempt special tooling retains specific exemption        cost of new, not used, personal property. If the acquisition 
under  MCL  211.9b and  MCL  211.9d. As a  reminder,  there    cost new of an asset is known to you or can be reasonably 
are very few tools that fall into the exempt special tools     ascertained through investigation, you must report that 
category. Tooling that was previously reported in Section      cost in the year it was new when you complete Sections 
H will  either now be  exempt  and subject  to ESA and         A through F, even if you have  adjusted the  cost  in your 
reported in Part 3 (all years except 2012) or reported in      accounting records to reflect revaluation of the asset 
Part 2 for 2012 in the  corresponding table. (Taxpayers are    using a “purchase,” “fresh start,” “push-down” or similar 
recommended to use Section B.)                                 accounting  methodology,  or  even  if your  booked cost 
Air  and water pollution control  facilities and/or  wind      reflects a “used” purchase, lease “buy-out” price or a “trade-
or water energy conversion devices qualify for exemption       in” credit. If you were unable to report the acquisition cost 
only if an exemption certificate has been issued by the State  new for one or more of your assets, you should check “Yes” 
Tax Commission. If you claim such an exemption, check          and attach a list of all such assets. On the list, provide a 
“Yes” and attach an itemized list of the certificate numbers   detailed description of each asset, the year or approximate 
and the dates of issuance.                                     year that the asset was new, and the Section, the amount and 
                                                               acquisition year at which you have reported the asset. You 
Summary Question 2: You must file a completed Form 
                                                Instructions — Page 2

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must also provide a written explanation of the reason(s) that records, assuming that you account using generally accepted
the original acquisition cost information is not available. accounting principles. You must also report in these sections
Summary Question 4: Check “Yes” if you are a lessor any other tangible personal property in your possession or
(landlord), a lessee (tenant) or a sublessee (subtenant) in a under your control in this jurisdiction that is not reported
rental contract relating to the real property at this location. under Sections G through N. The acquisition costs for the
MCL 211.8(i) provides that, under some circumstances, the assets reported under each section must be totaled for each
value, if any, of a sub-leasehold estate shall be assessed to acquisition year. Place the yearly total on the line of the
the lessee. If you check “Yes,” complete Section O. Your section corresponding to the year that the property was
rental arrangement will be analyzed by the assessor. If acquired. You must report the original acquisition cost, not
you check “Yes” and have made leasehold improvements your estimation of the value of the property.
to the real estate, you must also complete Section M. Your The cost reported in each of the sections of this form, and
completion of Sections M and O will not necessarily result other forms used with this form, should include the full
in an increased assessment. invoiced cost without deduction for the value of certain
Summary Question 5: “Daily rental property” is tangible inducements such as: service agreements and warranties
personal property, having a cost new of $10,000 or less, when these inducements are regularly provided without
that is exclusively offered for rental, pursuant to a written additional charge.
agreement, on an hourly, daily, weekly or monthly basis Inventory is exempt from assessment. Inventory does
for a term of 6 months or less (including all permitted not include personal property under lease or principally
or required extensions). If you acquired the property intended for lease or rental, rather than sale. Property
“used” you must determine the cost new for purposes of allowed a cost recovery allowance or depreciation under the
determining whether the property qualifies for “daily rental Internal Revenue Code is not inventory.
property” treatment. If you believe that you have such
property, see Property Statement - Daily Rental Property Motor vehicles registered with the Michigan Secretary of
(Form 3595) for additional information. If you qualify, you State on December 31, 2021, are exempt. Special mobile
must complete Form 3595. equipment, as defined by MCL 257.62, and nonregistered
motor vehicles are assessable.
Summary Question 6: This question requires you to
disclose other businesses that share space with you at the Computer software, if the purchase was evidenced by
location(s) of your business. If you answer “Yes” attach a list a separate invoice amount, and asset number, and if the
of all other businesses operating at your location(s). If you software is commonly sold separately, is exempt.
are located in a shopping center, office building or other
If you have had “Move-Ins” of used property during calendar
multi-tenant facility, you are not required to list businesses
year 2021, you must complete Form 3966, in addition to
having a different legal address.
completing this form. “Move-Ins” are items of assessable
personal property that were not assessed in this city or
Part 2: General Instructions for Sections A
township in 2021, including: acquisitions of previously used
through F
personal property (which should be reported in the year it was
You must report in these Sections the full acquisition cost new and at the cost when new); used personal property you
new, in the year of its acquisition new, of all machinery have moved in from outside this city or township; and personal
and equipment, computer equipment, furniture and property that you mistakenly omitted from your statement in
fixtures, signs, coin operated equipment, office equipment, 2020. “Move-Ins” do not include property moved from another
electronic, video and testing equipment, rental video tapes location within this city or township or assessed to another
and games and other tangible personal property owned by taxpayer within this city or township in 2021 (i.e. property
you and located in this assessment jurisdiction, even if you reported by a previous owner or previously leased property
have fully depreciated the asset or have expensed the asset reported by the lessor to this city or township last year). All
under Section 179 of the Internal Revenue Code or under “Move-Ins” must be reported in the appropriate section of this
your accounting policies. All costs reported must include form, in addition to being reported on Form 3966.
freight, sales tax and installation costs, even in cases
where the cost was actually incurred by another. The costs You must report the cost of business trade fixtures in the
reported must include all costs (except capitalized interest) appropriate Section, A through F, rather than in Section
that would be capitalized by an end-user/owner of the M where you report leasehold improvements. You must
property under generally accepted accounting principles, also report the costs of installing personal property in
including overheads and “indirect costs” associated with the the appropriate Section, A through F. Trade fixtures and
process of constructing, acquiring or making the property installation costs of machinery and equipment must not be
available for use. Capitalized expenditures made to a piece reported in Section M, even if you have booked them as
of machinery or equipment after the initial acquisition year leasehold improvements for financial accounting purposes.
must be reported in the year the expenditure is booked as Trade fixtures are items of property that have been attached
a fixed asset. These costs must be reported the same as to real estate by a tenant to facilitate the tenant’s use of
they are shown on your financial accounting fixed asset the property for business purposes and which are both

Instructions — Page 3

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capable of being removed and are removable by the tenant          container return machines, storage tanks, hand tools 
under the terms of the lease. Examples of trade fixtures are      of mechanics and trades, nonregistered motor vehicles, 
certain costs related to telephone and security systems and       freestanding and other safes not assessed as real property, 
most signs. Examples of installation costs are the costs of       oil  and gas field equipment  and gathering lines prior to 
machine foundations and electric, water, gas and pneumatic        commingling product  with other wells (other lines are 
connections for individual manufacturing machines.                reported in Section J, Form 3589), portable toilets, metal 
                                                                  shipping pallets and containers, portable saw mills, LP 
A summary of the items that should be reported in each 
                                                                  tanks under 2,000 gallons, fuel dispensing control consoles, 
section is contained in STC Bulletin 12 of 1999, its later 
                                                                  computer-controlled  printing  presses,  stereo  lithography 
annual  supplement(s) and in these  instructions. MCL 
                                                                  apparatus, forklift trucks, non-coin operated gaming 
211.19 requires that you complete this form in accordance 
                                                                  apparatus and computerized and mechanical handling 
with the directions on the form and in these instructions. 
                                                                  equipment, commercial mail sorting operation equipment,  
You may, however, attach supplementary material for the 
                                                                  pill counters, pram robotics. Other assets may be included at 
assessor to consider in making valuation decisions. If you 
                                                                  a later time. 
have questions regarding proper categorization of property, 
contact the State Tax Commission for clarification.               Section C is omitted from use. 
Part 2: Personal Property Statement – Detailed                    Report of Statement Section D, Office, Electronic Video 
Instructions                                                      and Testing Equipment: The assets to be reported in 
                                                                  this section include  office  machines, non-computerized 
Report of Statement Section A, Furniture and Fixtures:            cash registers, faxes, mailing and binding equipment, 
The assets to be reported in this section include decorations,    photography and developing equipment, including one-
seating, furniture (for offices, apartments, restaurants, stores  hour photo developing equipment, shredders, projectors, 
and gaming establishments), shelving and racks, animal            telephone and switchboard systems (even if computerized), 
cages and tanks, lockers, modular office components,              audio and video equipment (used for receiving, transmitting, 
cabinets, counters, rent-to-own furnishings, medical  exam        recording, producing and broadcasting), amplifiers, CD, 
room furnishings, therapeutic medical beds and bedding,           cassette and disc  players, speakers, cable  television local 
bookcases, displays, mobile office trailers, special use sinks    origination equipment, electronic  scales, surveillance 
(such  as  those  found  in  medical  offices,  beauty  shops and equipment, electronic diagnostic and testing equipment 
restaurants), tables, non-electronic recreational equipment,      (for automotive  shops, medical offices, hospitals and 
filing systems, slat walls, non-freestanding signs, window        dental  offices), ophthalmology testing  equipment, satellite 
treatments, uniforms and linens, cooking, baking and eating       dishes, video-screen arcade games, electronic testing 
implements, shopping carts, booths and bars. Other assets         equipment, electronic laboratory equipment, cellular 
may be included at a later time.                                  telephones, medical laser equipment, reverse osmosis and 
Report of Statement Section B, Machinery and                      hemodialysis systems, movable dynamometer, spectrum 
Equipment: The assets to be reported in this section include      analyzer, security systems, 2-way and mobile  land radio 
all assets that are not designated for disclosure in another      equipment, pay-per-view systems, wooden and plastic 
section. Specifically, such assets include the following          pallets and shipping containers, rental musical instruments 
types of machinery and equipment: air compressors,                and distributive control systems (see STC Bulletin 3 of 
airport  ground,  non-coin  operated  amusement  rides and        2000). Office machines which are not capable of being 
devices, auto repair and maintenance, beauty and barber           integrated into a local area or wide area computer network, 
shop, boiler, furnace, bottling and canning, crane and hoist,     office machines that are only capable of being used as  a 
car wash, chemical processing, construction, unlicensed           facsimile transmitting/receiving machine and/or as a copier, 
vehicular, conveyor, non-coin operated dry cleaning and           and office  machines that  are multifunctional  but are  not 
laundry, air makeup and exhaust  systems, manufacturing           capable of being used as a computer peripheral, are reported 
and fabricating, food processing, gym and exercise, heat          in this section. A copier is a freestanding or desktop piece 
treating, landscaping, sawmill, incinerators, maintenance         of office equipment, which is most commonly used in an 
and janitorial, non-electronic medical and dental and             office setting, and which is primarily designed to print, or 
laboratory and veterinary equipment, mining and quarrying,        to make copies of short-run text material produced in that 
mortuary and cemetery, painting, hydrocarbon refining             office. Copiers generally use commercially available 8.5” by 
and  production and distribution, plastics,  pottery  and         11” bond or copy paper and produce duplicate originals of 
ceramics, printing and newspaper, rubber manufacturing,           text documents in such a way that the use of carbon paper 
scales, ski lifts, smelting, stone and clay processing,           or other duplicating processes can be  avoided. Printing 
supermarket, textile, tanning, vehicle mounted, waste             presses are not copiers and must be reported in Section B 
containers, wire product manufacturing, woodworking,              of this form even if the operation of the printing press is 
automated tellers (ATM), computer controlled lighting, CNC        regulated or controlled digitally, is controlled by a computer, 
controlled manufacturing, theater  equipment, restaurant          or is automated. A printing press is a device designed 
food preparation and dispensing and storing and serving           primarily to produce commercial runs  of printed material, 
equipment, soft drink fountains, coin counters, beverage          such as books, pamphlets, forms, magazines, newspapers, or 

                                             Instructions — Page 4

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advertising circulars, for commercial sale, regardless of the   Report  of  Statement  Section  I,  Qualified  Personal  
technology  employed  in  such  production  and  regardless of  Property: Report “qualified personal property” in this  
the type of paper which is used. The definition of a printing   section.  Do  not report “qualified personal property”  in  
press specifically includes any machine that employs an         Sections A through F. “Qualified personal property” is  
offset or other non-impact printing process, if the machine     property that was made available to you by a “qualified  
otherwise meets the definition of a printing press. Cellular    business” (usually a leasing company or a finance company)  
site equipment, specifically including communication towers     and which is not assessable to the “qualified business.” Such  
and land improvements must be reported on Form 4452,            property is assessable to you as the user. The requirements for  
rather than in this section.                                    “qualified business” treatment are strict and many leasing and  
                                                                financing companies do not qualify. Further, such treatment  
Report of Statement Section E, Consumer Coin Operated  
                                                                only applies to property subject to an agreement (usually  
Equipment: The assets to be reported in this section include  
                                                                labeled  a  lease)  entered  into  after  December  31,  1993,  that  
consumer coin-operated equipment such as bill and change  
                                                                qualifies for treatment as “qualified personal property.” The  
machines, juke boxes, pinball machines, coin-operated pool  
                                                                “qualified business” is required to have filed a statement  
tables and other non-video arcade games, snack and beverage  
                                                                with the assessor by February 1 of the current year and is  
machines, other vending machines, news boxes, laundry  
                                                                required to have made a written agreement with you in which  
equipment, coin operated telephones and slot machines. Other  
                                                                it is specifically agreed that you will report the property to the  
assets may be included at a later time. 
                                                                assessor as “qualified personal property.” See MCL 211.8a. 
Report  of  Statement  Section F,  Computer  Equipment: 
                                                                Report of Statement Section J and K, Leased and 
The assets to be reported in this section include assessable 
                                                                Other Personal Property in Your Possession Which in 
software, personal and midrange and mainframe computer 
                                                                Not Qualified Personal Property: Report all business 
and  peripheral  equipment,  including  servers,  data  storage 
                                                                machines, postage meters, machinery, equipment, furniture, 
devices, CPUs,  input  devices such as scanners and 
                                                                fixtures, tools, burglar alarms, signs and advertising devices 
keyboards, output devices such as printers and plotters, 
                                                                and  other  tangible  personal  property that  you are  renting 
monitors,  networking  equipment,  computerized  point 
                                                                or leasing from another person or entity. Provide all of the 
of sale terminals, global positioning system equipment, 
                                                                information requested for each lease. You must provide 
lottery ticket  terminals, gambling tote  equipment, pager 
                                                                the actual or estimated selling price new of the asset MCL 
instruments, cable television converters and receivers for 
                                                                211.13 provides  that all tangible personal property shall 
home satellite dish television systems. 
                                                                be assessed to the owner thereof, unless the owner is not 
A programmable logic control device for a machine should        known.  A personal  property  statement  will  be  sent  to  the 
be reported in Section B with the machine it serves. Office     owner. Property reported in this section should not be 
machines which are capable of being integrated into a local     reported elsewhere on this form. 
area or wide area computer network and office machines that  
                                                                Report all machines, meters, machinery, equipment, 
are single function, or multifunction, and which are capable  
                                                                furniture, fixtures, tools, signs and advertising devices that 
of being used as a computer peripheral, including copiers that  
                                                                are in your possession but are not owned, leased or rented by 
can be used as a computer peripheral, are reported in this  
                                                                you. Examples include equipment left with you by vendors, 
section. Other assets may be included at a later time. 
                                                                such as display racks, coolers or fountain equipment, 
Report of Statement Section G, Other Owned Assessable           property loaned to you by another, property left with you 
Personal Property: Report all nonexempt tangible                for storage or rebuilding, consigned equipment not held for 
personal property owned by you at this location that is not     resale and assets sold but not yet picked up by the purchaser. 
entitled to depreciation/cost recovery under the United         Provide all of the information requested for each asset. You 
States Internal Revenue Code or that the assessor has told      must provide the actual or estimated selling price new of the 
you to report  in this section or that  otherwise  presents     asset so that control totals can be generated for use on the 
special  valuation  problems. An example  of property  not      Summary and Certification portion of page 1. MCL 211.13 
entitled to depreciation/cost recovery is fine art. Examples    provides that all tangible personal property shall be assessed 
of properties that represent special valuation problems are:    to the owner thereof, unless the owner is not known. A 
locally- assessed copper and fiber optic cable not reportable   personal property statement will be sent to the owner. 
in Section M, frequently supplemented professional books, 
                                                                Section L is omitted from use. 
feature motion picture films, audio and video productions 
not sold to the public at large, musical instruments used       Report   of   Statement Section  M Leasehold
for professional performance, LP tanks of 2,000 gallons or      Improvements: This section is to be completed by tenants 
more that have not been assessed as real property, nuclear      who are renting or leasing real property. All improvements 
fuel  and toll bridge company structures. Provide all           (leasehold improvements) you have made to the real 
requested information. An inspection of the property may        property in 2012 should be reported, even if you believe 
be necessary. Property reported in this section should not be   that  the  improvements are  not  subject  to assessment  as 
reported elsewhere on this form.                                personal  property.  Provide  as much  detail  as possible  so 
                                                                that the assessor can determine whether an  assessment 
Section H is omitted from use. 

                                             Instructions — Page 5

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should be made. Coaxial and/or fiber-optic wiring costs assets as defined in MCL 211.8 (i), on December 31, 2021,
and associated infrastructure of audio and/or visual systems complete the Wind Energy System Personal Property Report
serving subscribers of one or more multiple unit dwellings (Form 4565) and carry the total original cost from Form
or temporary habitations under common ownership, and 4565 to line 3. See the instructions to Form 4565.
which do not use public rights-of-way shall be reported
Number 3: If you had assets that qualified as “idle
in this section and be clearly identified as such. You may
equipment” or as “obsolete or surplus equipment” on
use attachments, but only if your attachment provides all
December 31, 2021, complete Idle, Obsolete and Surplus
the information requested in this section and if you insert
Equipment (Form 2698), and carry the Total Original Cost
the Total Cost Incurred where required on the Combined
for 2012 from Form 2698 to line 3.
Document.
“Idle equipment” is equipment that is part of a discontinued
Report of Statement Section N, All Freestanding Signs process and that has been disconnected and is stored in a
and Billboards: Report the total capitalized cost and year of separate location. Assets are not “idle” if they are present
construction of buildings and other structures you have placed as standby equipment, are used intermittently or are used
on land not owned by you, such as leased or public lands or on on a seasonal basis. “Obsolete or surplus equipment” is
public rights- of-way. Costs of freestanding communications equipment that either requires rebuilding and is in the
towers and associated equipment buildings (unless such costs possession of a rebuilding firm on December 31, 2021,
have been reported on Form 4452) and costs of freestanding OR is being disposed of by means of an advertised sale
billboards are examples of other structures that are to be because it has been declared as surplus by an owner who
reported. The reported cost must include all costs capitalized has abandoned a process or plant. Property that is part of a
on your records. See STC Bulletin 8 of 2007. process that has been temporarily suspended from operation
Report of Statement Section O, Rental Information: or which is being offered for sale with the expectation that
Landlords and tenants must provide rental information the process will be continued at the same location, does not
relating to lease arrangements to which they are a party. Do qualify for idle or obsolete and surplus reporting treatment.
not report lease or rental arrangements relating to property Only property which would otherwise be reported in
occupied for residential purposes. If you are a landlord Sections A through F on this Statement qualifies to be
with multiple properties, contact the assessor to arrange an reported as idle or obsolete and surplus equipment. For more
acceptable alternative reporting method. information, see instructions to Form 2698. Do not include
these assets elsewhere on this Statement. If you had cellular
Grand Total Costs of Non-eligible Personal Property (wireless) site assets on December 31, 2021, complete the
Enter zero costs if appropriate. Cellular (Wireless) Site Equipment Personal Property
Report (Form 4452), and carry the Total Original Cost from
Costs reported in this section are for tax year 2012 only. Form 4452 to line 4. See the instructions to Form 4452.
Costs for all years except 2012 should be reported in Part 3
of this Combined Document. The full acquisition cost of idle and obsolete equipment that is
eligible manufacturing personal property must be reported in
Number 1: Complete Sections A through O. Add the totals Part 3, if it was first placed in service in any year except 2012.
from Sections A through O to arrive at a Grand Total Cost There is no deduction for idle, obsolete, or surplus equipment
for these Sections. in the calculation of ESA liability.
Number 2: If you had cable television or utility assets on Number 4: If you had assets that qualified as automotive
December 31, 2021, complete the Cable Television and manufacturing personal property on December 31, 2021,
Public Utility Personal Property Report (Form 3589), or complete the Automotive Manufacturing Equipment
the Electric Distribution Cooperative Personal Property Personal Property Report (Form 4798) and carry the Total
Statement (Form 633), and carry the Total Original Cost Original Cost for 2012 from Form 4798 to line 4.
for 2012 from Form 3589 or Form 633 to line 2. See the
instructions to Form 3589. If you had wind energy system

Instructions for Part 3: Essential Services Assessment Statement Instructions
For further information, all State Tax Commission Bulletins A list of all applicable certification numbers for this parcel
and Forms referenced in these instructions are available at must be attached to this form.
www.michigan.gov/ESA or www.michigan.gov/PPT. Claimants filing Form 5278 to report EMPP that is not yet
eligible for the exemption should check the “zero acquisition
Summary and Reporting Instructions for
cost” box to indicate that they are willfully reporting no
Essential Services Assessment
acquisition costs in Part 3 of Form 5278. Parcels for which
Provide a yes or no answer to all questions. If a yes answer no acquisition costs have been reported on an ESA return by
is provided, the acquisition costs for that eligible personal April 15, 2023, will have any EMPP exemption rescinded,
property must be reported as indicated by the instructions. unless this box has been checked on Form 5278.

Instructions — Page 6

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Check the leased personal property box only if Form 5467 is IFT or extended P.A. 328 exemption. An IFT or P.A.
attached to this Form 5278 when filed. 328 may be extended only if the certificate was in effect
Qualified new or previously existing personal on or after December 31, 2012, AND expired prior to
Number 1:
property exempt under MCL 211.9m or MCL 211.9n and that December 31, 2021. An IFT or P.A. 328 certificate that
was subject to an Industrial Facilities Exemption Certificate expires after December 31, 2021, is not extended and
(P.A. 198) that was in effect on or after December 31, 2012, acquisition cost new for 2012 should be reported in Part 2
must be designated in this part including the certificate of this Combined Document. An IFT certificate that went
number. Attach a copy of the IFT certificate or other official into effect after December 31, 2012, is not eligible to be
documentation. IFT certificate numbers are assigned by the extended.
State Tax Commission upon approval and consist of a four NOTE: If the EMPP claimed on this combined document
digit year and a unique three-digit number, separated by a is approved by the local tax collecting unit, the information
dash. Certificates that have been amended by the State reported on Form 5278 will be transmitted to the Michigan
Tax Commission may also include a letter (typically “a”) Department of Treasury. By May 1, the Department of
following the seven digits. Treasury shall generate an electronic statement for each
eligible claimant for calculation of the Essential Services
NOTE: IFT certificates with a begin date after December Assessment. This statement is available through the
31, 2012, do not receive any benefit in the calculation of ESA Michigan Treasury Online (MTO) website at www.mto.
liability. . To receive the EMPP exemption,
treasury.michigan.gov
Number 2: Personal property subject to an MCL 211.9f the eligible claimant is required to certify and electronically
(P.A. 328) exemption that was in effect on or after December pay the ESA tax liability shown on that certified statement.
31, 2012, and expired on or before December 30, 2021, This ESA Statement is only available online and will not be
must be designated in this section including the certificate mailed or otherwise transmitted to the claimant. Similarly,
number. Attach a copy of the P.A. 328 certificate or other no invoice or tax bill will be mailed or issued to EMPP
official documentation. P.A. 328 certificate numbers are exemption claimants indicating the amount of ESA liability
assigned by the State Tax Commission upon approval and due. To receive the EMPP exemption for 2022 and avoid
consist of a a unique three-digit number followed by a four late penalties, each taxpayer is required to certify this ESA
digit year, separated by a dash. Statement and pay the full ESA liability by August 15, 2022.
Payments not received by August 15 begin to accrue penalty
Number 3: Personal property that is exempt from the
at the rate of 3% per month or part of a month to a maximum
Essential Services Assessment and either subject to or
of 27%. If 2022 is the claimant’s first assessment year, the
exempt from the Alternative Essential Services Assessment
penalty shall be waived if the statement and full payment
as a result of a resolution issued under provisions of MCL
are submitted by September 15. No waiver of late payment
211.1061 by the Michigan Strategic Fund beginning in 2016
penalty is available to claimants who filed in 2021 or prior.
(MCL 211.1059) must be designated in this part. Attach a
copy of the MSF resolution. In accordance with statutory requirements, an eligible
claimant can pay the ESA tax and any late payment penalty
Number 4: Personal property subject to a Renaissance Zone
by using MTO, Electronic Funds Transfer (EFT) credit,
exemption must be designated in this part including the
or e-file no later than April 15, 2023. Payments cannot be
name of the Renaissance Zone.
mailed to Treasury.
Report of Qualified New Personal Property Detailed instructions on how to navigate MTO, as well as
(MCL 211.9m) and Qualified Previously Existing additional information regarding the EMPP exemption, ESA
Personal Property (MCL 211.9n) tax, and approved electronic filing and payment methods,
are available on the ESA Web site at www.michigan.gov/
Report 100% of the Eligible Personal Property’s Fair Market
ESA. Claimants and professionals providing services to
Value at the time of acquisition by the first owner for all
claimants are encouraged to sign up for the ESA listserv to
years except 2012. There is a rebuttable presumption that
receive pertinent information regarding EMPP and ESA as
the acquisition price paid by the first owner for personal
well as reminders of important dates.
property, and any costs of freight, sales tax, and installation,
and other capitalized costs, except capitalized interest, The State Essential Services Assessment Act (P.A. 92
reflect the acquisition cost. The cost of freight, sales tax of 2014, as amended) requires taxpayers claiming an
and installation must be included. Other capitalized costs, EMPP exemption to file and certify an ESA statement
except capitalized interest must be reported. Construction in and electronically submit payment of their ESA liability
Progress (CIP), as defined in MCL 211.9m(8)(c), is reported in full by August 15 to avoid late payment penalties. If a
on the separate “Construction in Progress” line. certified statement and full payment (including late payment
penalties) are not received by April 15, 2023, Treasury is
EMPP claimants should not adjust the fair market value required to rescind the claimant’s EMPP exemption.
to address deductions related to valid IFT certificates,
NOTE: If an EMPP exemption is rescinded, the taxpayer
Renaissance Zones, Construction in Progress, or the
will become liable for taxes to the local tax collecting unit
property’s status as idle or obsolete equipment.
and any extended P.A. 328 or extended IFT exemption shall
Report fair market value only for years highlighted (2012) be rescinded by the State Tax Commission.
in which personal property is subject to an extended
Instructions — Page 7

- 12 -

                                          Definitions for Terms in Form 5278 
Acquisition cost means the fair market value of personal        not in operation, EMPP means all personal property that  
property at the time of acquisition by the first owner,         is part of that new facility if that personal property will be  
including the cost of freight, sales tax, and installation, and predominantly used in industrial processing when the facility  
other capitalized costs, except capitalized interest. There     becomes operational. Personal property that is not owned,  
is a rebuttable presumption that the price paid by the first    leased or used by the person who owns or leases occupied  
owner reflects the acquisition cost. MCL 211.1053(a)(i). For    real property where the personal property is located is not  
property subject to an extended P.A. 198 exemption, an IFT      EMPP unless the personal property is located on the occupied  
certificate effective before January 1, 2013, that is  not yet  real property to carry on a current on-site business activity.  
expired, or under an extended IFT, acquisition cost means       Personal property that is placed on occupied real property  
half of the fair market value of that personal property at the  solely to qualify the personal property for an exemption under  
time of acquisition by the first owner, including the cost      9m or 9n is not EMPP. For additional information regarding  
of freight, sales tax, and installation, and other capitalized  EMPP, refer to MCL 211.9m and the State Tax Commission’s  
costs, except capitalized interest.                             “Assessor’s Guide to Eligible Manufacturing Personal  
                                                                Property and ESA” [MCL 211.9m(8)(c)]. 
Construction in Progress means all personal property 
that  is part of that new facility if that personal  property   Eligible Personal Property (for purposes of the Essential 
will be predominantly used in industrial processing when        Services Assessment) means personal property exempt 
the facility becomes operational. For property that is          under MCL  211.9m  or 211.9n;  personal  property that  is 
construction in progress, “acquired by” means the year the      EMPP (defined in MCL 211.9m) that is exempt under a P.A. 
property is first reported on the Combined Document in the      328 (MCL 211.9f) which was approved in 2014, unless the 
report of the fair market value and year of acquisition by the  application for  the  exemption was filed with the  eligible 
first owner of qualified new personal property or qualified     local  assessing district  or Next  Michigan development 
previously existing personal property [MCL 211.1053(a)(ii)].    corporation before August 5, 2014, and the resolution 
                                                                approving the exemption states that the project is expected 
Direct Integrated Support is defined as: 
                                                                to have total new personal property of over $25,000,000.00 
(i) Research and development related to goods produced in       within 5 years of the  adoption of the  resolution by 
industrial processing and conducted in furtherance of that      the  eligible  local  assessing  district  or  Next  Michigan 
industrial processing.                                          development  corporation;  Personal  Property subject  to  an 
                                                                extended industrial facilities exemption certificate under 
(ii) Testing and quality control functions related to goods 
                                                                section MCL 207.561a (IFT); or Personal Property subject 
    produced  in  industrial  processing  and  conducted  in 
                                                                to an extended exemption under MCL 211.9f(8) (P.A. 328 
    furtherance of that industrial processing. 
                                                                Exemption) [MCL 211.1053(e)]. 
(iii) Engineering related to goods produced in industrial 
                                                                Essential  Services Assessment Act is an act  to levy a 
     processing and conducted in furtherance  of that 
                                                                tax on eligible manufacturing personal property exempt 
     industrial processing. 
                                                                under MCL 211.9m or MCL 211.9n; to provide for the 
(iv) Receiving or storing equipment, materials, supplies,       administration, collection, and distribution of the tax; 
    parts, or components for industrial processing, or scrap    to impose certain duties on persons and certain state 
    materials or waste resulting from industrial processing,    departments;  to  impose  penalties;  and  to  repeal  acts and 
    at the industrial processing site or at another site owned  parts of acts. (MCL 211.1051 - 211.1061) 
    or leased by the owner or lessee of the industrial 
                                                                Extended P.A.  328  Certificate   is a  P.A.  328  certificate 
    processing site. 
                                                                that  was  in  effect  on or  after December  31,  2012,  and  has 
(v) Storing of finished goods inventory if the inventory was    a certificate end date prior to the personal property subject 
   produced by  a  business engaged primarily  in industrial    to the certificate qualifying for the exemption under 
   processing and if the inventory is stored either at the site MCL  211.9m  or  MCL  211.9n.  For 2021,  extended P.A. 
   where it was produced or at another site owned or leased     328 certificates are those that were in effect on or after 
   by the business that produced the inventory.                 December 31, 2012, and expired in 2013, 2014, 2015, 2016, 
                                                                2017, 2018, 2019, 2020 or 2021. 
(vi) Sorting, distributing, or sequencing functions that 
    optimize transportation and just-in-time inventory          To be extended, a P.A. 328 certificate must have been valid 
    management and material handling for inputs to              for the 2021 assessment year, either because it expired in 
    industrial processing [MCL 211.9m(8)(b)].                   2021 or it was extended and EMPP reported in 2021. 
Eligible Manufacturing Personal Property (EMPP) means           Extended IFT Certificate is an IFT certificate that was in 
all personal property located on    occupied real property if   effect on or after December 31, 2012, and has a certificate 
that personal property is predominantly used in industrial      end date prior to the personal property subject to the 
processing or direct integrated support. For personal property  certificate qualifying for the exemption under MCL 211.9m 
that is construction in progress and part of a new facility     or MCL 211.9n. For 2022, extended IFT certificates  are 

                                                    Instructions — Page 8

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those that were in effect on or after December 31, 2012, and    primarily in industrial processing, direct integrated 
expired in 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020 or    support,  or  both.  A business operation  is not  engaged 
2021.                                                           primarily in industrial processing, direct integrated 
                                                                support, or both if it engages in significant business 
To be extended, an IFT certificate must have been valid for 
                                                                activities that are not directly related to industrial 
the 2021 assessment year, either because it expired in 2021 
                                                                processing or direct integrated support. Contiguity is not 
or it was extended and EMPP reported in 2021. 
                                                                broken by a boundary between local tax collecting units, 
Industrial  Processing   is defined  in  MCL  205.54t  and      a  road,  a  right-of-way,  or  property purchased  or  taken 
MCL 205.94o: “Industrial processing” means  the activity        under condemnation proceedings by a public utility 
of converting or conditioning tangible personal property        for power transmission lines if the 2 parcels separated 
by changing the form, composition, quality, combination,        by the purchased or condemned property were a single 
or character of the property for ultimate sale at retail or for parcel prior to the sale or condemnation. As used in this 
use in the manufacturing of a product to be ultimately sold     subparagraph, “single, integrated business operation” 
at retail. Industrial processing begins when tangible personal  means a company that combines 1 or more related 
property begins movement from raw materials storage to          operations or divisions and operates as a single business 
begin industrial processing and ends when finished goods        unit. 
first  come  to  rest  in  finished  goods inventory  storage. 
                                                                (iii) The portion of a parcel of real property that is owned, 
Industrial  processing does not  include  the  generation, 
                                                                leased, or otherwise occupied by a person claiming the 
transmission, or distribution of electricity for sale. 
                                                                exemption under section 9m or 9n or by an affiliated 
NOTE:  Utility personal  property         (as defined in        person. 
MCL.211.34c) is not used in industrial processing or direct 
                                                                Qualified New Personal  Property is defined as personal 
integrated support. 
                                                                property that was initially placed in service in this state or 
Occupied Real Property is defined by statute in MCL             outside of the state after December 31, 2012, or that was 
211.9m(8)(q) as:                                                construction in progress on or after December 31, 2012, that 
                                                                had not been placed in service in this state or outside of this 
(i) A parcel of real property that is entirely owned, leased, 
                                                                state before  2013 and is eligible  manufacturing personal 
or otherwise occupied by a person claiming an exemption 
                                                                property [MCL 211.9m(8)(j)]. 
under section 9m or 9n. 
                                                                Qualified  Previously Existing Personal Property means  
(ii) Contiguous parcels of real property that are entirely 
                                                                personal property that was first placed in service within this 
    owned, leased, or otherwise occupied by a person 
                                                                state or outside of this state more than 10 years before the 
    claiming an exemption under section 9m or 9n and that 
                                                                current calendar year and is eligible manufacturing personal 
    host a single, integrated business operation engaged 
                                                                property [MCL 211.9m(8)(c)]. 

                                                  Instructions — Page 9

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