Bill Text: MI HB4546 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: Economic development; other; grant or tax incentives created in the corporate responsibility act; require to comply in the industrial facilities property tax abatement provision. Amends sec. 9 of 1974 PA 198 (MCL 207.559).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-04-14 - Referred To Committee On Finance [HB4546 Detail]

Download: Michigan-2009-HB4546-Engrossed.html

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HB-4546, As Passed House, March 25, 2010

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4546

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1974 PA 198, entitled

 

"An act to provide for the establishment of plant rehabilitation

districts and industrial development districts in local

governmental units; to provide for the exemption from certain

taxes; to levy and collect a specific tax upon the owners of

certain facilities; to impose and provide for the disposition of an

administrative fee; to provide for the disposition of the tax; to

provide for the obtaining and transferring of an exemption

certificate and to prescribe the contents of those certificates; to

prescribe the powers and duties of the state tax commission and

certain officers of local governmental units; and to provide

penalties,"

 

by amending section 9 (MCL 207.559), as amended by 2008 PA 516.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9. (1) The legislative body of the local governmental

 

unit, in its resolution approving an application, shall set forth a

 

finding and determination that the granting of the industrial

 

facilities exemption certificate, considered together with the

 

aggregate amount of industrial facilities exemption certificates

 

previously granted and currently in force, shall not have the

 

effect of substantially impeding the operation of the local

 

governmental unit or impairing the financial soundness of a taxing

 

unit that levies an ad valorem property tax in the local

 

governmental unit in which the facility is located or to be

 

located. If the state equalized valuation of property proposed to

 

be exempt pursuant to an application under consideration,

 

considered together with the aggregate state equalized valuation of

 

property exempt under certificates previously granted and currently

 

in force, exceeds 5% of the state equalized valuation of the local

 

governmental unit, the commission, with the approval of the state

 

treasurer, shall make a separate finding and shall include a

 

statement in the order approving the industrial facilities

 

exemption certificate that exceeding that amount shall not have the

 

effect of substantially impeding the operation of the local

 

governmental unit or impairing the financial soundness of an

 

affected taxing unit.

 

     (2) Except for an application for a speculative building,

 

which is governed by subsection (4), the legislative body of the

 

local governmental unit shall not approve an application and the

 

commission shall not grant an industrial facilities exemption

 

certificate unless the applicant complies with all of the following

 

requirements:

 

     (a) The commencement of the restoration, replacement, or

 

construction of the facility occurred not earlier than 12 months

 

before the filing of the application for the industrial facilities

 

exemption certificate. If the application is not filed within the

 

12-month period, the application may be filed within the succeeding

 

12-month period and the industrial facilities exemption certificate

 

shall in this case expire 1 year earlier than it would have expired

 

if the application had been timely filed. This subdivision does not

 

apply for applications filed with the local governmental unit after

 

December 31, 1983.

 

     (b) For applications made after December 31, 1983, the

 

proposed facility shall be located within a plant rehabilitation

 

district or industrial development district that was duly

 

established in a local governmental unit eligible under this act to

 

establish a district and that was established upon a request filed

 

or by the local governmental unit's own initiative taken before the

 

commencement of the restoration, replacement, or construction of

 

the facility.

 

     (c) For applications made after December 31, 1983, the

 

commencement of the restoration, replacement, or construction of

 

the facility occurred not earlier than 6 months before the filing

 

of the application for the industrial facilities exemption

 

certificate.

 

     (d) The application relates to a construction, restoration, or

 

replacement program that when completed constitutes a new or

 

replacement facility within the meaning of this act and that shall

 

be situated within a plant rehabilitation district or industrial

 

development district duly established in a local governmental unit

 

eligible under this act to establish the district.

 

     (e) Completion of the facility is calculated to, and will at

 

the time of issuance of the certificate have the reasonable

 

likelihood to create employment, retain employment, prevent a loss

 

of employment, or produce energy in the community in which the

 

facility is situated.

 

     (f) Completion of the facility does not constitute merely the

 

addition of machinery and equipment for the purpose of increasing

 

productive capacity but rather is primarily for the purpose and

 

will primarily have the effect of restoration, replacement, or

 

updating the technology of obsolete industrial property. An

 

increase in productive capacity, even though significant, is not an

 

impediment to the issuance of an industrial facilities exemption

 

certificate if other criteria in this section and act are met. This

 

subdivision does not apply to a new facility.

 

     (g) The provisions of subdivision (c) do not apply to a new

 

facility located in an existing industrial development district

 

owned by a person who filed an application for an industrial

 

facilities exemption certificate in April of 1992 if the

 

application was approved by the local governing body and was denied

 

by the state tax commission in April of 1993.

 

     (h) The provisions of subdivisions (b) and (c) and section

 

4(3) do not apply to 1 or more of the following:

 

     (i) A facility located in an industrial development district

 

owned by a person who filed an application for an industrial

 

facilities exemption certificate in October 1995 for construction

 

that was commenced in July 1992 in a district that was established

 

by the legislative body of the local governmental unit in July

 

1994. An industrial facilities exemption certificate described in

 

this subparagraph shall expire as provided in section 16(3).

 

     (ii) A facility located in an industrial development district

 

that was established in January 1994 and was owned by a person who

 

filed an application for an industrial facilities exemption

 

certificate in February 1994 if the personal property and real

 

property portions of the application were approved by the

 

legislative body of the local governmental unit and the personal

 

property portion of the application was approved by the state tax

 

commission in December 1994 and the real property portion of the

 

application was denied by the state tax commission in December

 

1994. An industrial facilities exemption certificate described in

 

this subparagraph shall expire as provided in section 16(3).

 

     (iii) A facility located in an industrial development district

 

that was established in December 1995 and was owned by a person who

 

filed an application for an industrial facilities exemptions

 

certificate in November or December 1995 for construction that was

 

commenced in September 1995.

 

     (iv) A facility located in an industrial development district

 

owned by a person who filed an application for an industrial

 

facilities exemption certificate in July 2001 for construction that

 

was commenced in February 2001 in a district that was established

 

by the legislative body of the local governmental unit in September

 

2001. An industrial facilities exemption certificate described in

 

this subparagraph shall expire as provided in section 16. The

 

facility described in this subparagraph shall be taxed under this

 

act as if it was granted an industrial facilities exemption

 

certificate in October 2001, and a corrected tax bill shall be

 

issued by the local tax collecting unit if the local tax collecting

 

unit has possession of the tax roll or by the county treasurer if

 

the county has possession of the tax roll. If granting the

 

industrial facilities exemption certificate under this subparagraph

 

results in an overpayment of the tax, a rebate, including any

 

interest and penalties paid, shall be made to the taxpayer by the

 

local tax collecting unit if the local tax collecting unit has

 

possession of the tax roll or by the county treasurer if the county

 

has possession of the tax roll within 30 days of the date the

 

exemption is granted. The rebate shall be without interest.

 

     (v) A facility located in an industrial development district

 

owned by a person who filed an application for an industrial

 

facilities exemption certificate in December 2005 for construction

 

that was commenced in September 2005 in a district that was

 

established by the legislative body of the local governmental unit

 

in December 2005. An industrial facilities exemption certificate

 

described in this subparagraph shall expire as provided in section

 

16.

 

     (vi) A facility located in an existing industrial development

 

district owned by a person who filed or amended an application for

 

an industrial facilities exemption certificate for real property in

 

July 2006 if the application was approved by the legislative body

 

of the local governmental unit in September 2006 but not submitted

 

to the state tax commission until September 2006.

 

     (vii) A new facility located in an existing industrial

 

development district owned by a person who filed or amended an

 

application for an industrial facilities exemption certificate for

 

personal property in June 2006 if the application was approved by

 

the legislative body of the local governmental unit in August 2006

 

but not submitted to the state tax commission until 2007. The

 

effective date of the certificate shall be December 31, 2006.

 

     (viii) A new facility located in an industrial development

 

district that was established by the legislative body of the local

 

governmental unit in September of 2007 for construction that was

 

commenced in March 2007 and for which an application for an

 

industrial facilities exemption certificate was filed in September

 

of 2007.

 

     (ix) A facility located in an industrial development district

 

that was established by the legislative body of the local

 

governmental unit in August 2007 and was owned by a person who

 

filed an application for an industrial facilities exemption

 

certificate in June 2007 for equipment that was purchased in

 

January 2007.

 

     (x) A facility located in an industrial development district

 

that otherwise meets the criteria of this act that has received

 

written approval from the chairperson of the Michigan economic

 

growth authority.

 

     (xi) A new facility located in an industrial development

 

district that was established by the legislative body of the local

 

governmental unit in August of 2008 for construction that was

 

commenced in December 2005 and certificate of occupancy issued in

 

September 2006 for which an application for an industrial

 

facilities exemption certificate was filed in August of 2008.

 

     (xii) A facility located in an industrial development district

 

owned by a person who filed an application for a certificate for

 

real and personal property in April 2005 if the application was

 

approved by the legislative body of the local governmental unit in

 

July 2005 for construction that was commenced in July 2004.

 

     (xiii) A facility located in an industrial development district

 

that was established by the legislative body of the local

 

governmental unit in December 2007 for construction that was

 

commenced in September 2007 and a certificate of occupancy issued

 

in September 2008 for which an application for an industrial

 

facilities exemption certificate was approved in May of 2008.

 

     (i) The provisions of subdivision (c) do not apply to any of

 

the following:

 

     (i) A new facility located in an existing industrial

 

development district owned by a person who filed an application for

 

an industrial facilities exemption certificate in October 1993 if

 

the application was approved by the legislative body of the local

 

governmental unit and the real property portion of the application

 

was denied by the state tax commission in December 1993.

 

     (ii) A new facility located in an existing industrial

 

development district owned by a person who filed an application for

 

an industrial facilities exemption certificate in September 1993 if

 

the personal property portion of the application was approved by

 

the legislative body of the local governmental unit and the real

 

property portion of the application was denied by the legislative

 

body of the local governmental unit in October 1993 and

 

subsequently approved by the legislative body of the local

 

governmental unit in September 1994.

 

     (iii) A facility located in an existing industrial development

 

district owned by a person who filed an application for an

 

industrial facilities exemption certificate in August 1993 if the

 

application was approved by the local governmental unit in

 

September 1993 and the application was denied by the state tax

 

commission in December 1993.

 

     (iv) A facility located in an existing industrial development

 

district occupied by a person who filed an application for an

 

industrial facilities exemption certificate in June of 1995 if the

 

application was approved by the legislative body of the local

 

governmental unit in October of 1995 for construction that was

 

commenced in November or December of 1994.

 

     (v) A facility located in an existing industrial development

 

district owned by a person who filed an application for an

 

industrial facilities exemption certificate in June of 1995 if the

 

application was approved by the legislative body of the local

 

governmental unit in July of 1995 and the personal property portion

 

of the application was approved by the state tax commission in

 

November of 1995.

 

     (j) If the facility is locating in a plant rehabilitation

 

district or an industrial development district from another

 

location in this state, the owner of the facility is not delinquent

 

in any of the taxes described in section 10(1)(a) of the Michigan

 

renaissance zone act, 1996 PA 376, MCL 125.2690, or substantially

 

delinquent in any of the taxes described in and as provided under

 

section 10(1)(b) of the Michigan renaissance zone act, 1996 PA 376,

 

MCL 125.2690.

 

     (3) If the replacement facility when completed will not be

 

located on the same premises or contiguous premises as the obsolete

 

industrial property, then the applicant shall make provision for

 

the obsolete industrial property by demolition, sale, or transfer

 

to another person with the effect that the obsolete industrial

 

property shall within a reasonable time again be subject to

 

assessment and taxation under the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.157 211.155, or be used in a manner

 

consistent with the general purposes of this act, subject to

 

approval of the commission.

 

     (4) The legislative body of the local governmental unit shall

 

not approve an application and the commission shall not grant an

 

industrial facilities exemption certificate that applies to a

 

speculative building unless the speculative building is or is to be

 

located in a plant rehabilitation district or industrial

 

development district duly established by a local governmental unit

 

eligible under this act to establish a district; the speculative

 

building was constructed less than 9 years before the filing of the

 

application for the industrial facilities exemption certificate;

 

the speculative building has not been occupied since completion of

 

construction; and the speculative building otherwise qualifies

 

under subsection (2)(e) for an industrial facilities exemption

 

certificate. An industrial facilities exemption certificate granted

 

under this subsection shall expire as provided in section 16(3).

 

     (5) Not later than September 1, 1989, the commission shall

 

provide to all local assessing units the name, address, and

 

telephone number of the person on the commission staff responsible

 

for providing procedural information concerning this act. After

 

October 1, 1989, a local unit of government shall notify each

 

prospective applicant of this information in writing.

 

     (6) Notwithstanding any other provision of this act, if on

 

December 29, 1986 a local governmental unit passed a resolution

 

approving an exemption certificate for 10 years for real and

 

personal property but the commission did not receive the

 

application until 1992 and the application was not made complete

 

until 1995, then the commission shall issue, for that property, an

 

industrial facilities exemption certificate that begins December

 

30, 1987 and ends December 30, 1997. The facility described in this

 

subsection shall be taxed under this act as if it was granted an

 

industrial facilities exemption certificate on December 30, 1987.

 

     (7) Notwithstanding any other provision of this act, if a

 

local governmental unit passed a resolution approving an industrial

 

facilities exemption certificate for a new facility on July 8, 1991

 

but rescinded that resolution and passed a resolution approving an

 

industrial facilities exemption certificate for that same facility

 

as a replacement facility on October 21, 1996, the commission shall

 

issue for that property an industrial facilities exemption

 

certificate that begins December 30, 1991 and ends December 2003.

 

The replacement facility described in this subsection shall be

 

taxed under this act as if it was granted an industrial facilities

 

exemption certificate on December 30, 1991.

 

     (8) Property owned or operated by a casino is not industrial

 

property or otherwise eligible for an abatement or reduction of ad

 

valorem property taxes under this act. As used in this subsection,

 

"casino" means a casino or a parking lot, hotel, motel, convention

 

and trade center, or retail store owned or operated by a casino, an

 

affiliate, or an affiliated company, regulated by this state

 

pursuant to the Michigan gaming control and revenue act, 1996 IL 1,

 

MCL 432.201 to 432.226.

 

     (9) Notwithstanding section 16a and any other provision of

 

this act, if a local governmental unit passed a resolution

 

approving an industrial facilities exemption certificate for a new

 

facility on October 28, 1996 for a certificate that expired in

 

December 2003 and the local governmental unit passes a resolution

 

approving the extension of the certificate after December 2003 and

 

before March 1, 2006, the commission shall issue for that property

 

an industrial facilities exemption certificate that begins on

 

December 30, 2005 and ends December 30, 2010 as long as the

 

property continues to qualify under this act.

 

     (10) Notwithstanding any other provision of this act, if the

 

commission issued an industrial facilities exemption certificate

 

for a new facility on December 8, 1998 but revoked that industrial

 

facilities exemption certificate for that same facility effective

 

December 30, 2006 and that new facility is purchased by a buyer on

 

or before November 1, 2007, the commission shall issue for that

 

property an industrial facilities exemption certificate that begins

 

December 31, 1998 and ends December 30, 2010 and shall transfer

 

that industrial facilities exemption certificate to the buyer. The

 

new facility described in this subsection shall be taxed under this

 

act as if it was granted an industrial facilities exemption

 

certificate effective on December 31, 1998.

 

     (11) Notwithstanding any other provision of this act, if the

 

commission issued industrial facilities exemption certificates for

 

new facilities on October 30, 2002, September 9, 2003, and November

 

30, 2005 but revoked the industrial facilities exemption

 

certificates for the same facilities effective December 30, 2007

 

and the new facilities continue to qualify under this act, the

 

commission shall issue for the properties industrial facilities

 

exemption certificates which end respectively on December 30, 2008,

 

December 30, 2009, and December 30, 2011.

 

     (12) Notwithstanding any other provision of this act, if in

 

August 2008 a local governmental unit passed a resolution approving

 

an exemption certificate for 12 years for real and personal

 

property but the commission did not receive the application until

 

2008, then the commission shall issue, for that property, an

 

industrial facilities exemption certificate that begins December

 

31, 2006 and ends December 30, 2018. The facility described in this

 

subsection shall be taxed under this act as if it had been granted

 

an industrial facilities exemption certificate on December 31,

 

2006.

 

     (13) Beginning April 1, 2010, the local governmental unit

 

shall not approve an industrial facilities exemption certificate if

 

the owner or lessee of a facility fails to comply with section 3 of

 

the Michigan corporate responsibility act or fails to disclose a

 

civil or criminal offense as required by section 3 of the Michigan

 

corporate responsibility act.

 

     (14) Beginning with industrial facilities exemption

 

certificates that take effect on or after April 1, 2010, if the

 

owner of the facility to whom the certificate is issued fails to

 

comply with section 3 of the Michigan corporate responsibility act

 

or fails to disclose a civil or criminal offense as required by

 

section 3 of the Michigan corporate responsibility act on or after

 

April 1, 2010, then that person is responsible for the payment of a

 

penalty described in this subsection. The penalty is equal to the

 

difference between the industrial facility tax and the general ad

 

valorem taxes that would have been levied if the certificate had

 

not been granted for each year the certificate was in effect. The

 

attorney general of this state is responsible for the enforcement

 

necessary to ensure compliance with this subsection.