Bill Text: MI SB0390 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Taxation; specific tax; tax on low grade iron ore; modify distribution of funds. Amends sec. 4 of 1951 PA 77 (MCL 211.624).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2018-02-14 - Referred To Second Reading [SB0390 Detail]
Download: Michigan-2017-SB0390-Engrossed.html
SB-0390, As Passed Senate, December 13, 2017
SUBSTITUTE FOR
SENATE BILL NO. 390
A bill to amend 1951 PA 77, entitled
"An act providing for the specific taxation of low grade iron ore,
of low grade iron ore mining property, and of rights to minerals in
lands containing low grade iron ores; to provide for the collection
and distribution of the specific tax; to make an appropriation; and
to prescribe the powers and duties of the state geologist and
township supervisors and treasurers with respect to the specific
tax,"
by amending section 4 (MCL 211.624), as amended by 2002 PA 443.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) If the specific tax determined under section 3 is
less than the specific tax determined under section 2, then section
2 shall govern.
(2) The township supervisor shall remove from the list of land
descriptions assessed and taxed under the general property tax act,
1893
PA 206, MCL 211.1 to 211.157, 211.155,
the land descriptions
of property taxed under this act, and shall enter the land
descriptions on a separate roll. The township supervisor shall
spread the specific tax against the property and the township
treasurer shall collect the specific tax at the same time, in the
same manner, and subject to the same collection charges as general
property taxes under the general property tax act, 1893 PA 206, MCL
211.1
to 211.157. 211.155. Property listed and taxed under this act
shall be subject to return and sale for nonpayment of taxes in the
same manner, at the same time, and under the same penalties as
property returned and sold for nonpayment of taxes levied under the
general
property tax act, 1893 PA 206, MCL 211.1 to 211.157.
211.155. A valuation shall not be determined for a description
listed under this act and the property shall not be considered by
the county board of commissioners or by the state board of
equalization in connection with county or state equalization for
taxation purposes. If a low grade iron ore mining property is
located in more than 1 township, the state geologist shall
determine the portion attributable to each township. Except as
provided
in subsections (5), and (6), and (7), sums collected
under
this act shall be distributed by the township treasurer to school
districts, this state, and to local governmental units in the same
proportion as the general property taxes are distributed. The
amounts distributed may be used by the school districts and local
governmental units for operating expenses, for capital
improvements, and for the accumulation of reserves in a building
and site fund or for the payment of interest or principal on bonds.
(3) The tax provided in this act shall be in lieu of an ad
valorem tax on any of the following:
(a) The low grade iron ore.
(b) The low grade iron ore mining property.
(c) The mining of the low grade iron ore mining property.
(d) The production of iron ore pellets or other concentrated
or agglomerated products.
(e) The iron ore pellets or other concentrated or agglomerated
merchantable products.
(f) Land occupied by or used in connection with the mining,
transportation, and beneficiation of the ore and shipping of iron
ore pellets or other concentrated or agglomerated merchantable
products.
(4) For specific taxes levied after 1993, to determine the
proportion for the disbursement of taxes under this section and for
attribution of taxes under subsection (5) for the specific taxes
collected pursuant to this act, the number of mills levied for
local school district operating purposes to be used in the
calculation shall equal the number of mills for local school
district operating purposes levied in 1993 minus the number of
mills levied under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906, for the year for which the disbursement is
calculated.
(5) For specific taxes levied after 1993 and school operating
purposes, subject to subsection (7), the amount that would
otherwise be disbursed to a local school district shall be paid
instead to the state treasury and credited to the state school aid
fund established by section 11 of article IX of the state
constitution of 1963.
(6) The proceeds of the specific tax levied under subsection
(1) beginning December 31, 2001 through December 31, 2006 shall be
distributed as follows:
(a) To school districts and local governmental units the same
amount that they would have been entitled to receive if the
specific tax rate were 1.1%.
(b) After the distribution under subdivision (a) is made, the
remaining proceeds shall be deposited into the state school aid
fund.
(7) For specific taxes levied after 2016, each year the amount
that would otherwise be paid to the state treasury and credited to
the state school aid fund established by section 11 of article IX
of the state constitution of 1963 shall be distributed as follows:
(a) An amount equal to $500,000.00 shall be disbursed to the
intermediate school district that serves the county in which 1 or
more mining properties that are permitted on or before the
effective date of the amendatory act that added this subsection are
located to be distributed to school districts in that county for
school operating purposes as determined in a written agreement
between the intermediate school district and the school districts.
(b) Subsequent to the distribution of funds in subdivision
(a), except as otherwise provided in subdivisions (c) and (d), the
remainder shall be forwarded to the state treasurer for deposit in
the ferrous mineral reclamation fund established in subsection (8).
(c) Funds shall only be forwarded to the state treasurer for
deposit in the ferrous mineral reclamation fund until the ferrous
mineral reclamation fund accrues an amount that is equal to the
Senate Bill No. 390 as amended December 12, 2017
liability of the ferrous mineral operations assured by the ferrous
mineral reclamation fund as determined under the agreement in
subsection (11).
(d) After the ferrous mineral reclamation fund accrues an
amount that is equal to the liability of the ferrous mineral
operations assured by the ferrous mineral reclamation fund, funds
will no longer be forwarded to the state treasurer for deposit in
the ferrous mineral reclamation fund and will instead be paid to
the state treasury and credited to the state school aid fund.
(8) The ferrous mineral reclamation fund is created within the
department of treasury to be held in trust for use only as provided
in subsections (9) and (10). <<
>> The state treasurer shall direct the
investment of the ferrous mineral reclamation fund. The state
treasurer shall credit to the ferrous mineral reclamation fund
interest and earnings from ferrous mineral reclamation fund
investments.
(9) The ferrous mineral reclamation fund shall serve as a form
of assurance as described in section 63107 of the natural resources
and environmental protection act, 1994 PA 451, MCL 324.63107, for
permitted ferrous mineral operations that are under the common
ownership of a parent corporation for which at least 1 of the
ferrous mineral operations paid specific taxes deposited into the
ferrous mineral reclamation fund. If a ferrous mineral mining
permit is transferred to another operator, the assurance shall be
applied to the ferrous mineral operations of the operator acquiring
the permit in the same manner as to the original permittee.
(10) The department of environmental quality shall expend
money from the ferrous mineral reclamation fund only to implement
the mining and reclamation plan under section 63103a of the natural
resources and environmental protection act, 1994 PA 451, MCL
324.63103a, as well as necessary environmental protection measures,
including remediation of any contamination of the air, surface
water, or groundwater that is in violation of the mining permit,
when a permittee fails to timely implement the mining and
reclamation plan or measures in the mining and reclamation plan.
(11) The ferrous mineral operators that are assured by the
ferrous mineral reclamation fund, or the parent corporation of the
ferrous mineral operators that are assured by the ferrous mineral
reclamation fund, and the department of environmental quality shall
develop an implementation and access agreement that establishes the
liability of the ferrous mineral operations assured by the ferrous
mineral reclamation fund and the permissible expenditures of the
ferrous mineral reclamation fund within the scope of subsection
(10).
(12) Money in the ferrous mineral reclamation fund shall be
returned to the state school aid fund upon notice and approval of
completed reclamation under R 425.12 of the Michigan Administrative
Code under part 631 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.63101 to 324.63110, at all the
ferrous mineral operations that are assured by the ferrous mineral
reclamation fund as described in subsection (9).
(13) As used in this section, "ferrous mineral reclamation
fund" means the ferrous mineral reclamation fund created in
subsection (8).
