Bill Text: MI SB1067 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Property tax; exemptions; existing exemptions for industrial personal property; continue. Amends sec. 9f of 1893 PA 206 (MCL 211.9f).
Spectrum: Partisan Bill (Republican 10-0)
Status: (Passed) 2012-12-27 - Assigned Pa 0399'12 [SB1067 Detail]
Download: Michigan-2011-SB1067-Engrossed.html
SB-1067, As Passed Senate, May 10, 2012
SENATE BILL No. 1067
April 17, 2012, Introduced by Senators CASWELL, HUNE, KOWALL, MARLEAU, RICHARDVILLE, JONES, HILDENBRAND, NOFS, JANSEN and ROBERTSON and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 9f (MCL 211.9f), as amended by 2010 PA 274.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9f. (1) The governing body of an eligible local assessing
district or, subject to subsection (4), the board of a next
Michigan development corporation in which an eligible local
assessing district is a constituent member may adopt a resolution
to exempt from the collection of taxes under this act all new
personal property owned or leased by an eligible business located
in 1 or more eligible districts or distressed parcels designated in
the resolution or an eligible next Michigan business as provided in
this section. The clerk of the eligible local assessing district or
the recording officer of a next Michigan development corporation
shall notify in writing the assessor of the local tax collecting
unit in which the eligible district or distressed parcel is located
and the legislative body of each taxing unit that levies ad valorem
property taxes in the eligible local assessing district in which
the eligible district or distressed parcel is located. Before
acting on the resolution, the governing body of the eligible local
assessing district or a next Michigan development corporation shall
afford the assessor and a representative of the affected taxing
units an opportunity for a hearing.
(2) The exemption under this section is effective on the
December 31 immediately succeeding the adoption of the resolution
by the governing body of the eligible local assessing district or a
next Michigan development corporation and, except as otherwise
provided in subsection (8), shall continue in effect for a period
specified in the resolution. However, an exemption shall not be
granted under this section after December 31, 2012 for an eligible
business located in an eligible district identified in subsection
(8)(e)(ix) (9)(f)(ix) or in an eligible local
assessing district
identified
in subsection (8)(g)(ii)(9)(h)(ii). A copy of the
resolution shall be filed with the state tax commission, the state
treasurer, and the president of the Michigan strategic fund. A
resolution is not effective unless approved as provided in
subsection (3).
(3) Not more than 60 days after receipt of a copy of the
resolution adopted by the governing body of an eligible local
assessing district under subsection (1), the state tax commission
shall determine if the new personal property subject to the
exemption is owned or leased by an eligible business and if the
eligible business is located in 1 or more eligible districts. If
the state tax commission determines that the new personal property
subject to the exemption is owned or leased by an eligible business
and that the eligible business is located in 1 or more eligible
districts, the state treasurer, with the written concurrence of the
president of the Michigan strategic fund, shall approve the
resolution adopted under subsection (1) if the state treasurer and
the president of the Michigan strategic fund determine that
exempting new personal property of the eligible business is
necessary to reduce unemployment, promote economic growth, and
increase capital investment in this state. In addition, for an
eligible business located in an eligible local assessing district
described
in subsection (8)(g)(ii), (9)(h)(ii), the resolution
adopted under subsection (1) shall be approved if the state
treasurer and the president of the Michigan strategic fund
determine that granting the exemption is a net benefit to this
state, that expansion, retention, or location of an eligible
business will not occur in this state without this exemption, and
that there is no significant negative effect on employment in other
parts of this state as a result of the exemption.
(4) A next Michigan development corporation may only adopt a
resolution under subsection (1) exempting new personal property
from the collection of taxes under this act for new personal
property located in a next Michigan development district. A next
Michigan development corporation shall not adopt a resolution under
subsection (1) exempting new personal property from the collection
of taxes under this act without a written agreement entered into
with the eligible next Michigan business subject to the exemption,
which written agreement contains a remedy provision that includes,
but is not limited to, all of the following:
(a) A requirement that the exemption under this section is
revoked if the eligible next Michigan business is determined to be
in violation of the provisions of the written agreement.
(b) A requirement that the eligible next Michigan business may
be required to repay all or part of the personal property taxes
exempted under this section if the eligible next Michigan business
is determined to be in violation of the provisions of the written
agreement.
(5)
Subject to subsection subsections
(6) and (8), if an
existing eligible business sells or leases new personal property
exempt under this section to an acquiring eligible business, the
exemption granted to the existing eligible business shall continue
in effect for the period specified in the resolution adopted under
subsection (1) for the new personal property purchased or leased
from the existing eligible business by the acquiring eligible
business and for any new personal property purchased or leased by
the acquiring eligible business.
(6) After December 31, 2007, an exemption for an existing
eligible business shall continue in effect for an acquiring
eligible business under subsection (5) only if the continuation of
the exemption is approved in a resolution adopted by the governing
body of an eligible local assessing district or the board of a next
Michigan development corporation in which the eligible local
assessing district is a constituent member.
Senate Bill No. 1067 as amended May 10, 2012
(7) Notwithstanding the amendatory act that added section
2(1)(c), all of the following shall apply to an exemption under
this section that was approved by the state tax commission on or
before April 30, 1999, regardless of the effective date of the
exemption:
(a) The exemption shall be continued for the term authorized
by the resolution adopted by the governing body of the eligible
local assessing district and approved by the state tax commission
with respect to buildings and improvements constructed on leased
real property during the term of the exemption if the value of the
real property is not assessed to the owner of the buildings and
improvements.
(b) The exemption shall not be impaired or restricted with
respect to buildings and improvements constructed on leased real
property during the term of the exemption if the value of the real
property is not assessed to the owner of the buildings and
improvements.
(8) Notwithstanding any other provision of this section to the
contrary, if new personal property exempt under this section on
December 31, 2011 is eligible manufacturing personal property, that
eligible manufacturing personal property shall remain exempt under
this section until that eligible manufacturing personal property
would otherwise be exempt from the collection of taxes under this
act under section 9m, 9n, or 9o. <<This subsection does not apply
if the legislature fails to appropriate the amount of revenue lost
to each local taxing unit as provided in the personal property tax
exemption reimbursement act.>>
(9) (8)
As used in this section:
(a) "Acquiring eligible business" means an eligible business
that purchases or leases assets of an existing eligible business,
including the purchase or lease of new personal property exempt
under this section, and that will conduct business operations
similar to those of the existing eligible business at the location
of the existing eligible business within the eligible district.
(b) "Authorized business" means that term as defined in
section 3 of the Michigan economic growth authority act, 1995 PA
24, MCL 207.803.
(c) "Eligible manufacturing personal property" means that term
as defined in section 2 of the personal property tax exemption
reimbursement act.
(d) (c)
"Distressed parcel" means
a parcel of real property
located in a city or village that meets all of the following
conditions:
(i) Is located in a qualified downtown revitalization district.
As used in this subparagraph, "qualified downtown revitalization
district" means an area located within 1 or more of the following:
(A) The boundaries of a downtown district as defined in
section 1 of 1975 PA 197, MCL 125.1651.
(B) The boundaries of a principal shopping district or a
business improvement district as defined in section 1 of 1961 PA
120, MCL 125.981.
(C) The boundaries of the local governmental unit in an area
that is zoned and primarily used for business as determined by the
local governmental unit.
(ii) Meets 1 of the following conditions:
(A) Has a blighted or functionally obsolete building located
on the parcel. As used in this sub-subparagraph, "blighted" and
"functionally obsolete" mean those terms as defined in section 2 of
the brownfield redevelopment financing act, 1996 PA 381, MCL
125.2652.
(B) Is a vacant parcel that had been previously occupied.
(iii) Is zoned to allow for mixed use.
(e) (d)
"Eligible business"
means, effective August 7, 1998, a
business engaged primarily in manufacturing, mining, research and
development, wholesale trade, office operations, or the operation
of a facility for which the business that owns or operates the
facility is an eligible taxpayer. For purposes of a next Michigan
development corporation, eligible business means only an eligible
next Michigan business. Eligible business does not include a
casino, retail establishment, professional sports stadium, or that
portion of an eligible business used exclusively for retail sales.
Professional sports stadium does not include a sports stadium in
existence on June 6, 2000 that is not used by a professional sports
team on the date of the resolution adopted pursuant to subsection
(1). As used in this subdivision, "casino" means a casino regulated
by this state pursuant to the Michigan gaming control and revenue
act, 1996 IL 1, MCL 432.201 to 432.226, and all property associated
or affiliated with the operation of a casino, including, but not
limited to, a parking lot, hotel, motel, or retail store.
(f) (e)
"Eligible district" means
1 or more of the following:
(i) An industrial development district as that term is defined
in 1974 PA 198, MCL 207.551 to 207.572.
(ii) A renaissance zone as that term is defined in the Michigan
renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696.
(iii) An enterprise zone as that term is defined in the
enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123.
(iv) A brownfield redevelopment zone as that term is designated
under the brownfield redevelopment financing act, 1996 PA 381, MCL
125.2651 to 125.2672.
(v) An empowerment zone designated under subchapter U of
chapter 1 of the internal revenue code of 1986, 26 USC 1391 to
1397F.
(vi) An authority district or a development area as those terms
are defined in the tax increment finance authority act, 1980 PA
450, MCL 125.1801 to 125.1830.
(vii) An authority district as that term is defined in the
local development financing act, 1986 PA 281, MCL 125.2151 to
125.2174.
(viii) A downtown district or a development area as those terms
are defined in 1975 PA 197, MCL 125.1651 to 125.1681.
(ix) An area that contains an eligible taxpayer.
(x) A next Michigan development district.
(g) (f)
"Eligible distressed
area" means 1 of the following:
(i) That term as defined in section 11 of the state housing
development authority act of 1966, 1966 PA 346, MCL 125.1411.
(ii) An area that contains an eligible taxpayer.
(h) (g)
"Eligible local assessing
district" means a city,
village, or township that contains an eligible distressed area or
that is a party to an intergovernmental agreement creating a next
Michigan development corporation, or a city, village, or township
that meets 1 or more of the following conditions and is located in
a county all or a portion of which borders another state or Canada:
(i) Is currently served by not fewer than 4 of the following
existing services:
(A) Water.
(B) Sewer.
(C) Police.
(D) Fire.
(E) Trash.
(F) Recycling.
(ii) Is party to an agreement under 1984 PA 425, MCL 124.21 to
124.30, with a city, village, or township that provides not fewer
than 4 of the following existing services:
(A) Water.
(B) Sewer.
(C) Police.
(D) Fire.
(E) Trash.
(F) Recycling.
(i) (h)
"Eligible next Michigan
business" means that term as
defined in section 3 of the Michigan economic growth authority act,
1995 PA 24, MCL 207.803
(j) (i)
"Eligible taxpayer" means
a taxpayer that meets both
of the following conditions:
(i) Is an authorized business.
(ii) Is eligible for tax credits described in section 9 of the
Michigan economic growth authority act, 1995 PA 24, MCL 207.809.
(k) (j)
"Existing eligible
business" means an eligible
business identified in a resolution adopted under subsection (1)
for which an exemption has been granted under this section.
(l) (k)
"New personal property"
means personal property that
was not previously subject to tax under this act or was not
previously placed in service in this state and that is placed in an
eligible district after a resolution under subsection (1) is
approved. As used in this subdivision, for exemptions approved by
the state treasurer under subsection (3) after April 30, 1999, new
personal property does not include buildings described in section
14(6) and personal property described in section 8(h), (i), and
(j).
(m) (l) "Next
Michigan development corporation" and "next
Michigan development district" mean those terms as defined under
the next Michigan development act, 2010 PA 275, MCL 125.2951 to
125.2959.
