Bill Text: MI SB1148 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Economic development; plant rehabilitation; exception for tax abatements for certain local governmental units; provide for. Amends sec. 9 of 1974 PA 198 (MCL 207.559).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-12-31 - Assigned Pa 0490'12 With Immediate Effect [SB1148 Detail]
Download: Michigan-2011-SB1148-Engrossed.html
SB-1148, As Passed House, December 6, 2012
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 1148
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) Notwithstanding any other provision of this act, if in
September 2011 or October 2011 a local governmental unit passed a
resolution approving an exemption certificate for 12 years for
personal property but the commission did not receive the
application until November 2011 and the commission approved the
applications in May 2012, then the commission shall issue, for that
property, an industrial facilities exemption certificate that
begins December 31, 2011 and ends December 30, 2023. 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, 2011.
