Lightning Renewables LLC.pdf

Lightning Renewables LLC, Petitioner Vs. Township Of Three Oaks, Respondent · 25-002838-TT

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PROPERTY 

TAX PARTNERS 

RECEIVED 

JUN 04 2025 

Michigan Tax Tribunal ""CHIGAN TAX TRigya, ~~ May 27, 2025 

611 W. Ottawa Street 

Lansing, MI 48933 

RE: 

2025 Tax Petition 

Lightning Renewables, LLC 

Dear Members of the Tribunal, 

On February 18, 2025, Property Tax Partners (PTP) timely filed 

Form 5278, the Eligible Manufacturing Personal Property 

(EMPP) Tax Exemption Claim with the Three Oaks Township 

Assessor. Enclosed are copies of the filed form and the certificate 

of mailing for your reference. 

Despite the timely filing, the Michigan Treasury Online (MTO) 

did not receive the necessary documentation from the assessing 

office, resulting in an unassessed property issue for tax year 

2025. 

After extensive discussions with both the MTO and the assessing 

office, PTP has prepared and submits the attached Tax Petition 

to rectify this matter. We respectfully request: 

e 

The creation of an account for Lightning Renewables, LLC 

for the 2025 tax year. 

e 

Enroll the property in the EMPP exemption under MCL 

211.9m and MCL 211.9n. 

e 

Ensure the property is included in the Essential Services 

Assessment (ESA) program for 2025 and subsequent 

years. 

We appreciate your attention to this matter and are available to 

provide any additional information needed.

STATE OF MICHIGAN 

GRETCHEN WHITMER 

DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS 

MARLON I. BROWN, DPA 

GOVERNOR 

LANSING 

DIRECTOR 

Lightning Renewables, LLC 

Petitioner(s) 

; 

MICHIGAN TAX TRIBUNAL 

MTT Docket No. 

Three Oaks Township Assessor 

Respondent(s) 

ENTIRE TRIBUNAL PROPERTY TAX PETITION 

1. 

Property Parcel No: New Account for 2025_8230 W. Forest Lawn Road, Three Oaks, MI 49128 

(If more than one parcel is at issue, attach a completed Multiple Parcel Petition 

Form addressing all other parcels at issue.) 

2. 

The property identified above is real 

X 

personal. 

3. 

If more than one parcel of real property is under appeal, are the properties 

contiguous? ___ Yes ___ No. 

(If no, separate Petitions are required for each non- 

contiguous parcel.) 

N/A 

4. 

Are all of the parcels of personal property located on a parcel of real property 

under appeal? ___Yes _x_No. 

(If no, separate Petitions are required for each 

parcel of personal property not located on a parcel of real property under 

appeal.) 

5. 

If parcels of personal property are under appeal, when were the personal 

property statements filed by parcel number (attach additional page if necessary): 

See Attached 

6. 

The property identified above is classified as EMPP - Exempt (ESA Only)

MTT Docket No. 

Page 2 of 4 

8. 

10. 

11. 

12. 

13. 

If a protest was required and no protest was made, list the separate and specific 

facts upon which Petitioner relies to invoke the Tribunal’s authority over the 

assessment or assessments at issue (attach additional page if necessary): 

N/A 

- EMPP applied. Not assessed or denied by the township Assessor. 

Request EMPP enrollmwnt, supported by Assessor. 

If the appeal was not submitted by the deadline for the filing of an appeal for the 

classification or classifications of the properties at issue (i.e., May 31 or July 31 

of the tax year involved), list the separate and specific facts upon which 

Petitioner relies to invoke the Tribunal's authority over the assessment or 

assessments at issue (attach additional page if necessary): 

N/A 

- Property never assessed by the local township, nor enrolted or denied 

EMPP status. 

The property or properties at issue are located in Berrien 

County. The 

property or properties’ address is: 

8230 W. Forest Lawn Road 

Three Oaks, Mi 49128 

The assessment or assessments at issue were established by the (applicable 

local governmental unit): Assessment was not established 

- Three Oaks Township 

, Berrin County 

Petitioner's legal residence or principal office address is: 

Lightning Renewables, LLC 

201 Helios Way, Floor 6 

Houston, TX 77079 

This appeal involves issues relating to the (check all that are applicable): 

the property or properties’ true cash and taxable values 

the property or properties’ taxable value only 

If the property or properties’ taxable value is at issue, is there a 

dispute as to the value of an addition or loss? ___ Yes ___ No 

uniformity of the property or properties’ assessment

MTT Docket No. 

Page 3 of 4 

15. 

If more than the current tax year is being appealed, list the separate and specific 

facts upon which Petitioner relies to invoke the Tribunal's authority over the prior 

tax year or years (attach additional page if necessary}: 

NA - 2025 only 

16. 

The values for the property identified above as established by Respondent's 

Board of Review are: 

Tax Year 

True Cash Value 

Assessed Value 

Taxable Value 

N/A 

NOT 

YET 

ASSESSED 

17. 

Petitioner contends that the values for the property identified above are: 

Tax Year 

True Cash Value 

State Equalized Value 

Taxable Value 

N/A 

NOT 

YET 

ASSESSED 

18. 

The values in dispute for the property identified above are: 

Tax Year 

True Cash Value 

State Equalized Value 

Taxable Value 

N/A 

NOT 

YET 

ASSESSED 

19. 

Petitioner requests the following relief (attach additional page if necessary): 

To establish an account for 2025 - and add to the tax roll as filed.

MTT Docket No. 

Page 4 of 4 

Signature of P, 7 

ahi Representative or, if none, Petitioner: 

r/R 

Printed Nam¢ 

of Petitioner's Authorized Representative or, if none, Petitioner: 

Jeffrey Glasspool 

Email Address: jglasspool@ptp-usa.com 

Mailing Address: 

14950 Heathrow Forest Parkway, Suite 580 

Houston, TX 77032 

Telephone Number: 832-271-7034 

Date: 5/27/2025

Property Tax Partners 

| 

Certificate of Mailing Fees 

14950 Heathrow Forest Pkwy 

Number of Envelopes 

$ 

2 

Houston, TX 77032 

Certificate of Mailing Fee 

$ 

2.20 

Total Certificate of Mailing Postage 

$ 

4.40 

Correction 

se US POSTAGE mPITNEY BoE 

bh, 

—— 

- 

ARCHAEA ENERGY- 2025 MI Return 

Certificate of Mailing 

Due date: 2.20.2025 

(7 

— 

— 

ZIP 77032 

City of Novi Assessing Dept. 

Reason Consulting Corp. 

P.O. Box 2337, Brighton, MI 48116 

+ 

~_Facllity Name 

a 

FER 

ded 

oo 

Landfill Energy System-LES Project 

| 

46280 DYLAN DRIVE, Sule 

0 

Return 

| 

Three Oaks Township Assessor 

Noo, 

Ri 

6810 US Hwy 12 

~ STON 

Three Oaks, MI 49128 

oh 

Account # 

- 

) 

} 

oo I oo Address 

i. 

Included 

_ I 

| 

Lightning Renewables, LLC (Forest Lawn) 

8230 W. Forest Lawn Rd 

| 

2025PP Return 

|

Michigan Department of Treasury 

Parcel Number 

5278 (Rev. 09-24) 

New Account for 2025 

2025 

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 20, 2026. Fallure 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 

Lightning Renewables, LLC 

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 

Jeffrey Galsspool 

jglasspool@ptp-usa.com 

832-271-7034 

Contact St. No. 

| Contact Street Name or PO Box 

Contact City 

State 

ZIP Code 

Country 

14950 

Heathrow Forest Pkwy, #580 | Houston 

TX 

[77032 

USA 

Printed Name of Person in Charge 

of Records 

Telephone Number 

Address where records are retained 

Jill Pitre 

832-829-9161 

Personal Property Location Information 

Parcel Number of Personal Property claimed as Eligible Manufacturing Personal Property 

New Account for 2025 

NOTE: If the properly 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 

Three Oaks 

Berrien 

Street Address where personal properly is located 

City 

State 

ZIP Code 

8230 W. Forest Lawn Road 

Three Oaks 

Mi 

49128 

List all real property parcel numbers where the personal property reported on this form is located (attach list as necessary) 

11-20-0017-0008-06-8 (FLL, Inc) 

CERTIFICATION 

1. 

| certify that | own, lease or otherwise accupy the real property on which the eligible manufacturing personal property is located, or | 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). 

2.1 

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. 

3.1 certify my understanding that according to Public Act 82 of 2014, as amended, 

| 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

6278, Page 2 

J Check if there Is zero acquisition cost reported in the total In Part 2, Section B, befow. Unless this box ls checked, fallure to report 

acquisition cost in Section B may result in rescission of the EMPP exemption for this parcel. 

[I] Check If the personal properly reported on this form includes {eased personal property for which the election of lasses 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 211,1083(a)(i)] for all personal property must be reported In Section B below. 

1. 

Is the persanal property reported on this Combined Dacument subject to an industrlat Facilities Exemption Certificate 

{P.A. 198 of 1974) that went Into effect prior to December 31, 2012? If yes, attach a copy of the IFT certificate .......u.e.... J Yes 

[mm] No 

IFT Certificate 

; 

Certificate Begin Date 

Certificate End Date 

Number: | 

Y | Y 

[YY 

|[— 

i 

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 Comblned Document subject fo a PA, 328 (MCL 211.99 New Personal 

Property exemption? 

If yes, attach a copy of the P.A, 328 certificate...... 

rcbnnran 

seas 

[I Yes 

[ 

No 

PA, 328 

Certificate Begin Date 

Certificate End Date 

Certificate Number: 

—{Y|YIY]Y 

3. 

Is the personal property reported on this Combined Document exempt from the Essential Services Assessment, and 

sither subject to or exempt from an Altemative Essential Services Assessment, as a result of a resolutlon adopted 

under provisions of MCL 211.1059 by the Michigan Strategic Fund (MSF)? If yes, attach a copy of the MSF resolution. ] Yes 

C]] No 

MSF Certificate | 

, 

\ 

Cedtificate Begin Date 

Certificate End Date 

Number: 

CY 

IY 

LY | — 

a Yes 

[J No 

4. 

8 the personal property reported on this Combined Document subject to a Renaissance Zone Exemption? 

Renslssance Zone Name 

Explralfon Date 

5 

A 

x 

5 

2 

E 

| 

i? 

ik 

fiz 

Year Placed in Service 

cquisition Cost [MCL 211,10563(a)(#)] 

Yaar Placed In Service 

Acquisition Cost IMCL 214.1063(a)i)} 

Construction in Progress 

8,838,570 

2019 

2024 

2018 

2023 

2017

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. 

What's New for 2024 

If the EMPP exemption was granted in 2024, no claim 

is 

required to receive the exemption in 2025 unless the parcel is 

under a new FEIN or has been moved to a different local unit, 

You will not need to file a Form 5278 with the local unit for 

any changes other than FEIN or local unit. All amendments 

will be made on the ESA Statement (via MTO or e-file). 

+ 

The EMPP exemption 

is granted by the local unit in 

which the parcel is located. If the equipment is moved to 

another local unit, prior to December 31, 2024, 

a Form 

5277 will need to be filed with the previous local unit by 

February 20, 2025. A Form 5278 will also need to be filed 

with the current local unit, listing the new parcel number, by 

February 20, 2025, to claim the EMPP exemption. 

« 

The EMPP exemption is granted under the FEIN of the 

business that claims the paxcel. If the parcel is moved or sold 

to another company prior to December 31, 2024, 

a Form 

5277 will need to be filed by the previous company with 

the local unit by February 20, 2025. The new company will 

need to file a Form 5278 by February 20, 2025, to claim the 

EMPP exemption. 

* 

All 

qualified 

new 

and 

previously 

existing 

personal 

property first placed in service inside or outside of the state 

is now EMPP and, if the exemption is granted, exempt from 

focal property taxation, Exempt EMPP is instead subject to 

the Essential Services Assessment (ESA), 

«+ 

The filing deadline to claim the exemption on previously 

non-exempt parcels is February 20, 2025, with all forms 

postmarked by that date being considered timely filed. If 

the February 20, 2025 deadline is missed, eligible claimants 

may file Form 5278 with the March Board of Review prior 

to its adjournment, 

+ 

If a parcel no longer qualifies for the EMPP exemption 

and the taxpayer wishes to rescind, a Form 5277 Affidavit 

to 

Rescind 

Eligible 

Manufacturing 

Personal 

Property 

Exemption will need to be filed by February 20, 2025 along 

with a personal property statement. 

+ 

Tull electronic payment of the 2025 Essential Services 

Assessment must be received no 

later than August 

15, 

2025. If payment is not received in full by August 15, a late 

payment penalty at a rate of 3% of the unpaid balance per 

month, up to a maximum of 27%, will incur, In calculating 

the penalty, a partial month is considered a whole month and 

Property (EMPP) exemption. 

The Combined Document 

(Form 5278) only needs to be filed if the EMPP was not 

granted the exemption in the immediately preceding year, 

if the parcel is under a new FEIN, or has moved to a new 

local unit. Taxpayers should review the Assessor's Guide 

to Eligible Manufacturing Personal Property and ESA and 

ESA Topics available online at www.michigan.gov/ESA for 

more information on what is EMPP. Claims on previously 

non-exempt eligible personal property must be made by 

completing this form 

in 

its entirety for each parcel and 

filing it in the local unit in which the property is located by 

February 20, 2025, Eligible claimants who did not file by 

February 20, 2025, may file Form 5278 to the 2025 March 

Board of Review prior to final adjournment of their March 

meeting. 

Taxpayers 

not claiming 

the EMPP exemption 

should not use this Combined Document, but should file the 

Personal Property Statement (Form 632) with their local tax 

collecting unit. 

Leasing companies are not eligible to receive the exemption 

for qualified new personal property and qualified previously 

existing personal property and may not use this Combined 

Document. With respect to personal property that is the 

subject of 

a lease agreement, regardless of whother the 

agreement constitutes a lease for financial or tax purposes, 

if the personal property is or will be Eligible Manufacturing 

Personal Property, the lessee and lessor may elect that the 

lessee report the leased personal property on this Combined 

Document and be responsible. 

for any Essential Services 

Assessment liability that results, 

To 

elect 

for 

the 

lessee 

to 

report 

the 

leased personal 

property, 

at least some, but not necessarily 

all, personal 

property subject to the lease agreement must be Eligible 

Manufacturing Personal Property as defined in MCL 211.9m 

and MCL 211.9n. The Election of Lesseo Report of Eligible 

Manufacturing Personal Property (Form 5467) must also be 

attached to this Combined Document at the time it is filed 

with the local tax collecting unit. 

If election is made, property subject to the lease agreement 

must be reported on Part 2 of this Combined Document, as 

applicable. 

All State Tax Commission Bulletins and Forms referenced 

in these instructions can be accessed at www.michigan.gov/ 

PPT or www.michigan.gov/ESA.

number for the personal property being claimed as EMPP 

must be provided. If no number exists, contact the assessor 

of the local unit in which the personal property is located 

and request that a number be assigned. List the local unit 

of government in which the property is assessed. Only one 

field, in addition to the County field, should be entered 

unless the claimed personal property is located in a village, 

in which case both the village and township should be listed. 

Certification 

of the Form 

indicates 

understanding 

that 

the cettification and payment of ESA must be performed 

electronically. No tax bifl will be sent by Treasury and no 

ESA return or payment will be accepted by mail. 

Instructions for Part 2: Essential Services Assessment Statement Instructions 

For further information, all State Tax Commission Bulletins 

and Forms referenced in these instructions are available at 

www.michigan,gov/ESA or www.michigan.gov/PPT. 

Summary and Reporting instructions for 

Essential Services Assessment 

Provide a yes or no answer to all questions. If a yes answer 

is provided, the acquisition costs for that eligible personal 

property must be reported as indicated by the instructions. 

A list of all applicable certification numbers for this parcel 

must be attached to this form, 

Check the leased persanal property box only if Form 5467 is 

attached to this Form 5278 when filed, 

Number 1: Qualified new or previously existing personal 

property exempt under MCL 211.9m or MCL 211.91 and that 

was subject to an Industrial Facilities Exemption Certificate 

(P.A. 198) that was in effect on or after December 31, 2012, 

must be designated in this part including the certificate 

number. Attach a copy of the IFT certificate or other official 

documentation, IFT certificate numbers are assigned by the 

State Tax Commission upon approval and consist of a four 

digit year and a unique three-digit number, separated by a 

dash, Certificates that have been amended by the State 

Tax Commission may also include a letter (typically “a”) 

following the seven digits. 

NOTE: IFT certificates with a begin date after December 

31, 2012, do not receive any benefit in the calculation of ESA 

Hability, 

Number 2: Personal property subject to an MCL 211.9f 

(R.A. 328) exemption that was in effect on or after December 

31, 2012, must be designated in this section including the 

certificate number. Attach a copy of the P.A, 328 certificate 

or other official documentation. P.A. 328 certificate numbers 

are assigned by the State Tax Commission upon approval 

and consist of a unique three-digit number followed by a 

four digit year, separated by a dash, 

Number 

3: 

Personal property that 

is exempt from the 

Essential Services Assessment and either subject 

to 

or 

Report of Qualified New Personal Property 

© (MCL 211.9m) and Qualified Previously Existing 

Personal Property (MCL 211.9n) 

Report 

100% 

of 

the 

Eligible 

Personal 

Property’s 

Fair 

Market Value at the time of acquisition by the first owner 

for 

all years. There 

is 

a rebuttable presumption that the 

acquisition 

price paid 

by 

the 

first owner 

for personal 

property, and any costs of freight, sales tax, and installation, 

and 

other 

capitalized 

costs, 

except capitalized 

interest, 

reflect the acquisition cost. The cost of freight, sales tax 

and installation must be included. Other capitalized costs, 

except capitalized interest must be reported. Construction in 

Progress (CIP), as defined in MCL 211.9m(86)(c), is reported 

on the separate “Construction in Progress” line, 

EMPP claimants should not adjust the fair market value 

to 

address deductions related 

to 

valid IFT 

certificates, 

Renaissance 

Zones, 

Construction 

in 

Progress, 

or 

the 

property’s status as idle or obsolete equipment. 

NOTE: If the EMPP claimed on this combined document 

is approved by the local tax collecting unit, the information 

reported on Form 5278 will be transmitted to the Michigan 

Department of Treasury. By May 

1, 

the Department 

of 

Treasury shall generate an electronic statement for each 

eligible claimant for calculation of the Essential Services 

Assessment. 

This 

statement 

is 

available 

through 

the 

Michigan ‘Treasury Online (MTO) website 

at www.mto, 

treasury.michigan.gov. To receive the EMPP exemption, 

the eligible claimant is required to certify and electronically 

pay the ESA tax liability shown on that certified statement. 

This ESA Statement is only available online and will not be 

mailed or otherwise transmitted to the claimant. Similarly, 

no invoice or tax bill will be mailed or issued to EMPP 

exemption claimants indicating the amount of ESA lability 

due. To maintain the EMPP exemption for 2025 and avoid 

late penalties, each taxpayer is required to certify this ESA 

Statement and pay the full ESA liability by August 15, 2025. 

Payments not received by August 15 begin to accrue penalty 

at the rate of 3% per month or part of a month to a maximum 

of 27%. If 2025 is the claimant's first assessment year, the

Detailed instructions on how to navigate MTO, as well as 

additional information regarding the EMPP exemption, ESA 

tax, and approved electronic filing and payment methods, 

are available on the ESA Web site at www.michigan.gov/ 

ESA. Claimants and professionals providing services 

to 

claimants are encouraged to sign up for the ESA listserv to 

receive pertinent information regarding EMPP and ESA as 

well as reminders of important dates. 

The 

State Essential 

Services Assessment Act (PA. 

92 

of 2014, 

as amended) 

requires 

taxpayers claiming 

an 

EMPP exemption to 

file and certify an ESA statement 

and electronically submit payment of their ESA liability 

in full by August 15 to avoid late payment penalties. If a 

certified statement and full payment (including late payment 

penalties) are not received by April 

15, 2026, Treasury 

is 

required to rescind the claimant's EMPP exemption. 

NOTE: If an EMPP exemption is rescinded, the taxpayer 

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 

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. There 

is a rebuttable presumption that the price paid by the first 

owner reflects 

the acquisition 

cost. MCL 211.1053(@)(i). 

For property subject to an IFT certificate effective before 

January 

1, 2013 that 

is not yet expired acquisition cost 

means half of the fair market value of that 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. 

Construction 

in 

Progress 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, 

For property 

that 

is 

construction in progress, “acquired by” means the year the 

property is fitst reported on the Combined Document in the 

report of the fair market value and year of acquisition by the 

first owner of qualified new personal property or qualified 

previously existing personal property [MCL 211.1053(@)(ii)]. 

Direct Integrated Support is defined as: 

(i) Research and development related to goods produced in 

industrial processing and conducted in furtherance of 

that industrial processing. 

(ii) Testing and quality control functions related to goods 

produced 

in ‘industrial processing and conducted 

in 

furtherance of that industrial processing. 

(iif) Engineering related to goods produced in industrial 

processing 

and 

conducted 

in 

furtherance 

of 

that 

industrial processing. 

(iv) Receiving or storing equipment, materials, supplies, 

patts, or components for industrial processing, or scrap 

materials or waste resulting from industrial processing, 

(vi) 

Sorting, 

distributing, 

or 

sequencing 

functions 

that 

optimize 

transportation 

and 

just-in-time 

inventory 

management 

and 

material 

handling 

for 

inputs 

to 

industrial processing [MCL 211.9m(6)(b)]. 

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. Personal property 

that is not owned, leased or used by the person who owns 

or leases occupied real property where the personal property 

is located 

is not EMPP unless the personal property 

is 

located on the occupied real property to carry on a current 

on-site business activity. Personal property that 

is placed 

on occupied real property solely to qualify the personal 

property for an exemption under 9m or 9n is not EMPP, 

For additional information regarding EMPP, refer to MCL 

211.9m and the State Tax Commission’s “Assessors Guide to 

Eligible Manufacturing Personal Property and ESA” [MCL 

211.9m(6)(@)]. 

Eligible Personal Property (for purposes of the Essential 

Services 

Assessment) 

means 

personal 

property 

exempt 

under MCL 211.9m or 211.91 or personal property that is 

EMPP (defined in MCL 211.9m) that is exempt under a P.A. 

328 (MCL 211.9f) which was approved in 2014, unless the 

application for the exemption was filed with the eligible local 

assessing district or Next Michigan development corporation 

before August 

5, 2014, and the resolution approving the 

exemption states that the project is expected to have total new 

personal property of over $25,000,000.00 within 5 years of 

the adoption of the resolution by the eligible local assessing 

district or Next Michigan development corporation.

MCL 205940; “Industrial processing” means the activity 

of converting 

or conditioning tangible personal property 

by changing the form, composition, quality, combination, 

or character of the property for ultimate sale at retail or for 

use in the manufacturing of a product to be ultimately sold 

at retail or to be affixed to and made a structural part of real 

estate located in another state or for other named purposes, 

Industrial 

processing 

begins 

when 

tangible 

personal 

property begins movement from raw materials storage to 

begin industrial processing and ends when finished goods 

first come 

to 

rest 

in finished goods 

inventory storage. 

Industrial 

processing 

does 

not 

include 

the 

generation, 

transmission, or distribution of electricity for sale. 

NOTE: Utility personal property as described in section 

34c(3)€) and personal property used 

in 

the generation, 

transmission, or distribution of electricity for sale are not 

eligible manufacturing personal property. 

NOTE: 

Personal 

property 

used 

in 

the 

generation, 

teansmission, 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. 

(i) 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, 

(iif) 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)].

<Q 

PTP 

14950 Heathrow Forest Pkwy, Suite 580 

Houston, TX 77032 

Michigan Tax Tribunal 

P.O. Box 30232 

Lansing, MI 48909

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