Bill Text: MI SB1082 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Economic development; plant rehabilitation; business eligibility for abatements; expand to include next Michigan development corporation. Amends secs. 2 & 22 of 1974 PA 198 (MCL 207.552 & 207.572). TIE BAR WITH: HB 5349'09
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Passed) 2010-12-29 - Assigned Pa 0273'10 With Immediate Effect [SB1082 Detail]
Download: Michigan-2009-SB1082-Engrossed.html
SB-1082, As Passed House, December 1, 2010
SENATE BILL No. 1082
January 21, 2010, Introduced by Senators JANSEN, ALLEN, HUNTER, PAPPAGEORGE, CLARKE and HARDIMAN and referred to the Committee on Commerce and Tourism.
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 sections 2 and 22 (MCL 207.552 and 207.572), section 2
as amended by 2008 PA 581 and section 22 as amended by 1994 PA 266.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) "Commission" means the state tax commission
created by 1927 PA 360, MCL 209.101 to 209.107.
(2) "Facility" means either a replacement facility, a new
facility, or, if applicable by its usage, a speculative building.
(3) "Next Michigan development corporation" means that term as
defined in section 3 of the next Michigan development act.
(4) (3)
"Replacement facility"
means 1 of the following:
(a) In the case of a replacement or restoration that occurs on
the same or contiguous land as that which is replaced or restored,
industrial property that is or is to be acquired, constructed,
altered, or installed for the purpose of replacement or restoration
of obsolete industrial property together with any part of the old
altered property that remains for use as industrial property after
the replacement, restoration, or alteration.
(b) In the case of construction on vacant noncontiguous land,
property that is or will be used as industrial property that is or
is to be acquired, constructed, transferred, or installed for the
purpose of being substituted for obsolete industrial property if
the obsolete industrial property is situated in a plant
rehabilitation district in the same city, village, or township as
the land on which the facility is or is to be constructed and
includes the obsolete industrial property itself until the time as
the substituted facility is completed.
(5) (4)
"New facility" means new
industrial property other
than a replacement facility to be built in a plant rehabilitation
district or industrial development district.
(6) (5)
"Local governmental unit"
means a city, village, or
township, or next Michigan development corporation located in this
state. For purposes of this act, if a next Michigan development
corporation establishes a plant rehabilitation district or an
industrial development district, the next Michigan development
corporation shall act as the local governmental unit in
establishing and operating the plant rehabilitation district or the
industrial development district.
(7) (6)
"Industrial property"
means land improvements,
buildings, structures, and other real property, and machinery,
equipment, furniture, and fixtures or any part or accessory whether
completed or in the process of construction comprising an
integrated whole, the primary purpose and use of which is the
engaging in a high-technology activity, operation of a strategic
response center, operation of a motorsports entertainment complex,
operation of a logistical optimization center, operation of
qualified commercial activity, operation of a major distribution
and logistics facility, the manufacture of goods or materials,
creation or synthesis of biodiesel fuel, or the processing of goods
and materials by physical or chemical change; property acquired,
constructed, altered, or installed due to the passage of proposal A
in 1976; the operation of a hydro-electric dam by a private company
other than a public utility; or agricultural processing facilities.
Industrial property includes facilities related to a manufacturing
operation under the same ownership, including, but not limited to,
office, engineering, research and development, warehousing, or
parts distribution facilities. Industrial property also includes
research and development laboratories of companies other than those
companies that manufacture the products developed from their
research activities and research development laboratories of a
manufacturing company that are unrelated to the products of the
company. For applications approved by the legislative body of a
local governmental unit between June 30, 1999 and December 31,
2007, industrial property also includes an electric generating
plant that is not owned by a local unit of government, including,
but not limited to, an electric generating plant fueled by biomass.
Industrial property also includes convention and trade centers in
which construction begins not later than December 31, 2010 and is
over 250,000 square feet in size or, if located in a county with a
population of more than 750,000 and less than 1,100,000, is over
100,000 square feet in size or, if located in a county with a
population of more than 26,000 and less than 28,000, is over 30,000
square feet in size. Industrial property also includes a federal
reserve bank operating under 12 USC 341, located in a city with a
population of 750,000 or more. Industrial property may be owned or
leased. However, in the case of leased property, the lessee is
liable for payment of ad valorem property taxes and shall furnish
proof of that liability. For purposes of a local governmental unit
that is a next Michigan development corporation, industrial
property includes only property used in the operation of an
eligible next Michigan business, as that term is defined in section
3 of the Michigan economic growth authority act, 1995 PA 24, MCL
207.803. Industrial property does not include any of the following:
(a) Land.
(b) Property of a public utility other than an electric
generating plant that is not owned by a local unit of government
and for which an application was approved by the legislative body
of a local governmental unit between June 30, 1999 and December 31,
2007.
(c) Inventory.
(8) (7)
"Obsolete industrial
property" means industrial
property the condition of which is substantially less than an
economically efficient functional condition.
(9) (8)
"Economically efficient
functional condition" means a
state or condition of property the desirability and usefulness of
which is not impaired due to changes in design, construction,
technology, or improved production processes, or from external
influencing factors that make the property less desirable and
valuable for continued use.
(10) (9)
"Research and development
laboratories" means
building and structures, including the machinery, equipment,
furniture, and fixtures located in the building or structure, used
or to be used for research or experimental purposes that would be
considered qualified research as that term is used in section 41 of
the internal revenue code, 26 USC 41, except that qualified
research also includes qualified research funded by grant,
contract, or otherwise by another person or governmental entity.
(11) (10)
"Manufacture of goods or
materials" or "processing
of goods or materials" means any type of operation that would be
conducted by an entity included in the classifications provided by
sector 31-33 — manufacturing, of the North American industry
classification system, United States, 1997, published by the office
of management and budget, regardless of whether the entity
conducting that operation is included in that manual.
(12) (11)
"High-technology
activity" means that term as
defined in section 3 of the Michigan economic growth authority act,
1995 PA 24, MCL 207.803.
(13) (12)
"Logistical optimization
center" means a sorting and
distribution
center that supports a private passenger motor vehicle
assembly
center and its manufacturing process for the purpose of
optimizing
optimizes transportation , and
uses just-in-time
inventory
management , and
material handling. , and to which all of
the
following apply:
(a)
The sorting and distribution center is within 2 miles of a
private
passenger motor vehicle assembly center that, together with
supporting
facilities, contains at least 800,000 square feet.
(b)
The sorting and distribution center contains at least
950,000
square feet.
(c)
The sorting and distribution center has applied for an
industrial
facilities exemption certificate after June 30, 2005 and
before
January 1, 2006.
(d)
The private passenger motor vehicle assembly center is
located
on land conditionally transferred by a township with a
population
of more than 25,000 under 1984 PA 425, MCL 124.21 to
124.30,
to a city with a population of more than 100,000 that
levies
an income tax under the city income tax act, 1964 PA 284,
MCL 141.501 to 141.787.
(14) (13)
"Commercial property"
means that term as defined in
section 2 of the obsolete property rehabilitation act, 2000 PA 146,
MCL 125.2782.
(15) (14)
"Qualified commercial
activity" means commercial
property that meets all of the following:
(a) At least 90% of the property, excluding the surrounding
green space, is used for warehousing, distribution, or logistic
purposes and is located in a county that borders another state or
Canada or for a communications center.
(b) Occupies a building or structure that is greater than
100,000 square feet in size.
(16) (15)
"Motorsports entertainment
complex" means a closed-
course motorsports facility, and its ancillary grounds and
facilities, that satisfies all of the following:
(a) Has at least 70,000 fixed seats for race patrons.
(b) Has at least 6 scheduled days of motorsports events each
calendar year, at least 2 of which shall be comparable to nascar
nextel cup events held in 2007 or their successor events.
(c) Serves food and beverages at the facility during
sanctioned events each calendar year through concession outlets, a
majority of which are staffed by individuals who represent or are
members of 1 or more nonprofit civic or charitable organizations
that directly financially benefit from the concession outlets'
sales.
(d) Engages in tourism promotion.
(e) Has permanent exhibitions of motorsports history, events,
or vehicles.
(17) (16)
"Major distribution and
logistics facility" means a
proposed distribution center that meets all of the following:
(a) Contains at least 250,000 square feet.
(b) Has or will have an assessed value of $5,000,000.00 or
more for the real property.
(c) Is located within 35 miles of the border of this state.
Senate Bill No. 1082 as amended November 10, 2010
(d) Has as its purpose the distribution of inventory and
materials to facilities owned by the taxpayer whose primary
business is the retail sale of sporting goods and related
inventory.
Sec. 22. (1) A new industrial facilities exemption certificate
shall not be approved and issued under this act after April 1,
1994, unless a written agreement is entered into between the local
governmental unit and the person to whom the certificate is to be
issued, and filed with the department of treasury.
(2) A next Michigan development corporation shall not approve
an application for an industrial facilities exemption certificate
for an eligible next Michigan business without a written agreement
entered into with the eligible next Michigan business containing a
remedy provision that includes, but is not limited to, all of the
following:
(a) A requirement that the industrial facilities exemption
certificate 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 benefits received under
this act if the eligible next Michigan business is determined to be
in violation of the provisions of the written agreement.
<<Enacting section 1. This amendatory act does not take effect unless House Bill No. 5349 of the 95th Legislature is enacted into
law.>>
