Bill Text: MI HB6054 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Property tax; state essential services assessment; penalty for filing alternative essential services assessment late; modify. Amends sec. 7 of 2014 PA 93 (MCL 211.1077).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-12-31 - Assigned Pa 505'18 [HB6054 Detail]
Download: Michigan-2017-HB6054-Engrossed.html
HB-6054, As Passed Senate, December 19, 2018
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 6054
A bill to amend 2014 PA 93, entitled
"Alternative state essential services assessment act,"
by amending section 7 (MCL 211.1077), as amended by 2017 PA 263.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. (1) The department shall collect and administer the
alternative state essential services assessment as provided in this
section.
(2) Not later than May 1 in each assessment year, the
department shall make available in electronic form to each eligible
claimant a statement for calculation of the assessment as provided
in section 5. That statement shall be developed from the
information submitted by the eligible claimant on the combined
document as required by sections 9m and 9n of the general property
tax act, 1893 PA 206, MCL 211.9m and 211.9n.
(3) Not later than August 15 in each assessment year, each
eligible claimant shall electronically revise as necessary and
certify the completed statement and make full payment of the
assessment levied under section 5 for that assessment year as
calculated in section 5(2). The department may waive or delay the
electronic certification requirement at its discretion. The
department may accept a timely filed statement that calculates the
tax under this act that is transmitted and certified using
reporting software approved by the department, subject to audit
under subsection (6). A statement certified by an eligible claimant
shall include all of the eligible claimant's eligible personal
property located in this state subject to the assessment levied
under section 5. The statement required under this subsection shall
not be subject to disclosure under the freedom of information act,
1976 PA 442, MCL 15.231 to 15.246.
(4) If an eligible claimant does not certify the statement and
full payment of the assessment levied under section 5 by August 15,
the department shall issue a notice to the eligible claimant not
later than September 15. The notice shall include a statement
explaining the consequences of nonpayment as set forth in
subsection (5) and instructing the eligible claimant of its
potential responsibility under subsection (5)(e). An eligible
claimant
shall submit payment in full by October April 15 of the
year
following the assessment year along
with a penalty of 1% per
week
3% per month on the unpaid balance for each week month payment
is
not made in full up to a maximum of 5% 27% of the total amount
due and unpaid. In calculating the penalty, a partial month is
considered a whole month and the penalty shall not be prorated
based on the day of the month the late payment is received. For the
eligible claimant's first assessment year, the penalty shall be
waived if the eligible claimant certifies the statement and makes
full payment of the assessment levied under section 5 by September
15. An eligible claimant may amend a certified statement for the
current year up to September 15. Payments made due to an amended
statement are subject to the penalties as described in this
subsection. The department shall issue refunds for overpayments due
to an amended statement. All refunds due to overpayment shall be
remitted without interest except as provided by section 37 of the
tax tribunal act, 1973 PA 186, MCL 205.737.
(5) For any assessment year in which an eligible claimant does
not submit payment in full and any penalty due under subsection (4)
or
(6) by October 15, April
15 of the year following the assessment
year, or if the department discovers that the property is not
eligible under section 9m or 9n of the general property tax act,
1893 PA 206, MCL 211.9m and 211.9n, all of the following shall
apply:
(a) The department shall issue an order to rescind no later
than
the first Monday in December June
for the immediately
preceding assessment year any exemption described in section 9m or
9n of the general property tax act, 1893 PA 206, MCL 211.9m and
211.9n, granted for any parcel for which payment in full and any
penalty due have not been received or for which the department
discovers that the property is not eligible under section 9m or 9n
of the general property tax act, 1893 PA 206, MCL 211.9m and
211.9n.
(b) Upon the request of the department, the state tax
commission shall issue an order to rescind no later than the first
Monday
in December June for the immediately
preceding assessment
year any exemption under section 9f of the general property tax
act, 1893 PA 206, MCL 211.9f, which exemption was approved under
section 9f of the general property tax act, 1893 PA 206, MCL
211.9f, after 2013 for any parcel for which payment in full and any
penalty due have not been received or for which the state tax
commission discovers that the property is not eligible personal
property.
(c) Upon the request of the department, the state tax
commission shall issue an order to rescind no later than the first
Monday
in December June for the immediately
preceding assessment
year any exemption for eligible personal property subject to an
extended industrial facilities exemption certificate under section
11a of 1974 PA 198, MCL 207.561a, for any parcel for which payment
in full and any penalty due have not been received or for which the
department discovers that the property is not eligible personal
property.
(d) Upon the request of the department, the state tax
commission shall issue an order to rescind no later than the first
Monday
in December June for the immediately
preceding assessment
year any extended exemption for eligible personal property under
section 9f(8)(a) of the general property tax act, 1893 PA 206, MCL
211.9f, for any parcel for which payment in full and any penalty
due have not been received or for which the department discovers
that the property is not eligible personal property.
(e) The eligible claimant shall file with the assessor of the
township or city within 30 days of the date of the rescission
issued under subdivisions (a) to (d) a statement under section 19
of the general property tax act, 1893 PA 206, MCL 211.19, for all
property for which the exemption has been rescinded under this
section.
(f) Within 60 days of a rescission under subdivisions (a) to
(d), the treasurer of the local tax collecting unit shall issue
amended tax bills for any taxes, including penalty and interest,
that were not billed under the general property tax act, 1893 PA
206, MCL 211.1 to 211.155, or under 1974 PA 198, MCL 207.551 to
207.572, and that are owed as a result of the rescission.
(6) An eligible claimant shall 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 department for the year in
which the statement is filed and the immediately preceding 3 years.
The department shall develop and implement an audit program which
includes, but is not limited to, the audit of statements submitted
under subsection (3) and amended statements submitted under
subsection (4) for the current calendar year and the 3 calendar
years immediately preceding the commencement of an audit. An
assessment as a result of an audit shall be paid in full within 35
days of issuance and shall include penalties and interest as
described in section 154(3) of the general property tax act, 1893
PA 206, MCL 211.154. Refunds as a result of an audit under this
subsection shall be without interest. The exemption for personal
property for which an assessment has been issued as a result of an
audit under this subsection shall be subject to the rescission
provisions of subsection (5) for the years of the assessment if
full payment is not timely made as required by this subsection.
(7) An eligible claimant may appeal an assessment levied under
section 5 or a penalty or rescission under this section to the
Michigan tax tribunal by filing a petition not later than December
31 in that tax year. An eligible claimant may appeal an assessment
issued, including penalties, interest, or rescission, as a result
of an audit conducted under subsection (6) by filing a petition
with the Michigan tax tribunal within 35 days of the date of that
assessment's issuance. The department may appeal to the Michigan
tax tribunal by filing a petition for the current calendar year and
3 immediately preceding calendar years.
(8) The department may require eligible claimants to annually
file by the dates required under the general property tax act, 1893
PA 206, MCL 211.1 to 211.55, a combined document that includes the
form to claim the exemption under sections 9f(9), 9m, and 9n of the
general property tax act, 1893 PA 206, MCL 211.9f, 211.9m, and
211.9n, and under section 11a of 1974 PA 198, MCL 207.561a, a
report of the fair market value and year of acquisition by the
first owner of eligible personal property, and for any year before
2023, a statement under section 19 of the general property tax act,
1893 PA 206, MCL 211.19. All of the following apply to the filing
of a combined document under this subsection:
(a) The combined document shall be in a form prescribed by the
department.
(b) As provided in sections 9m and 9n of the general property
tax act, 1893 PA 206, MCL 211.9m and 211.9n, leasing companies are
not eligible to receive the exemption for qualified new personal
property and qualified previously existing personal property and
may not use the combined document prescribed in this section. With
respect to personal property that is the subject of a lease
agreement, regardless of whether the agreement constitutes a lease
for financial or tax purposes, all of the following apply:
(i) If the personal property is eligible manufacturing
personal property, the lessee and lessor may elect that the lessee
report the leased personal property on the combined document.
(ii) An election made by the lessor and the lessee under this
subdivision shall be made in a form and manner approved by the
department.
(iii) Absent an election, the personal property shall be
reported by the lessor on the personal property statement unless
the exemption for eligible manufacturing personal property is
claimed by the lessee on the combined document.
(c) For eligible personal property exempt under the Michigan
renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, an
eligible claimant shall report the fair market value of that
personal property at the time of acquisition by the first owner,
including the cost of freight, sales tax, installation, and other
capitalized costs, except capitalized interest.
(d) The combined document shall be filed with the assessor of
the township or city in which the eligible personal property is
located.
(e) The assessor shall transmit the information contained in
the combined document filed under this subsection, and other parcel
information required by the department, to the department in the
form and in the manner prescribed by the department no later than
April 1.
Enacting section 1. This amendatory act applies to taxes
levied after December 31, 2018.
Enacting section 2. This amendatory act does not take effect
unless House Bill No. 6053 of the 99th Legislature is enacted into
law.
