SB-0276, As Passed Senate, October 10, 2007

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 276

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 9f (MCL 211.9f), as amended by 2004 PA 79.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9f. (1) The governing body of an eligible local assessing

 

district 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

 

designated in the resolution. The clerk of the eligible local

 

assessing district shall notify in writing the assessor of the

 

local tax collecting unit in which the eligible district 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 is located. Before acting on the resolution,

 


the governing body of the eligible local assessing district 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 and

 

shall continue in effect for a period specified in the resolution.

 

A copy of the resolution shall be filed with the state tax

 

commission. A resolution is not effective unless approved by the

 

state tax commission as provided in subsection (3).

 

     (3) Not more than 60 days after receipt of a copy of the

 

resolution adopted under subsection (1), the state tax commission

 

shall approve or disapprove the resolution. The state treasurer,

 

with the written concurrence of the president of the Michigan

 

strategic fund, shall advise the state tax commission as to whether

 

exempting new personal property of the eligible business is

 

necessary to reduce unemployment, promote economic growth, and

 

increase capital investment in this state.

 

     (4) Subject to subsection (5), 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.

 


     (5) After December 31, 2007, an exemption for an existing

 

eligible business shall continue in effect for an acquiring

 

eligible business under subsection (4) only if the continuation of

 

the exemption is approved in a resolution adopted by the governing

 

body of an eligible local assessing district.

 

     (6) (4) 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.

 

     (7) (5) As used in this section:

 

     (a) "Eligible business" means, effective August 7, 1998, a

 

business engaged primarily in manufacturing, mining, research and

 

development, wholesale trade, or office operations. Eligible

 

business does not include a casino, retail establishment,

 


professional sports stadium, or that portion of an eligible

 

business used exclusively for retail sales. As used in this

 

subdivision, "casino" means a casino regulated by this state

 

pursuant to the Michigan gaming control and revenue act, the

 

Initiated Law of 1996, 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.

 

     (b) "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.

 

     (c) "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 business as described in

 

section 8(5)(b)(ii) of the Michigan economic growth authority act,

 

1995 PA 24, MCL 207.808.

 

     (d) "Eligible local assessing district" means a city, village,

 

or township that contains an eligible distressed area.

 

     (e) "New personal property" means personal property that was

 

not previously subject to tax under this act and that is placed in

 

an eligible district after a resolution under subsection (1) is

 

approved by the eligible local assessing district. As used in this

 

subdivision, for exemptions approved by the state tax commission

 

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).

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No.5251 (request no.

 

04252'07*) of the 94th Legislature is enacted into law.