PLANT REHABILITATION ABATEMENTS - H.B. 5223: FLOOR ANALYSIS

House Bill 5223 (as reported by the Committee of the Whole)

Sponsor: Representative Mary Schroer

House Committee: Tax Policy

Senate Committee: Economic Development, International Trade and Regulatory Affairs


CONTENT


The bill would amend the Plant Rehabilitation and Industrial Development Districts Act to make exceptions to the requirement that restoration, replacement, or construction of a facility begin within six months before an application for an industrial facilities exemption certificate was filed. This requirement would not apply if a certificate were filed and the application were approved by the local governmental unit in October 1996, but the application were denied by the State Tax Commission in December 1996. If an application were approved by the local unit on October 7, 1996, the restoration, replacement, or construction would have to have begun within seven months before the application was filed. An exception also would apply to a facility that was located in an existing industrial development district owned or occupied by a person who filed an application for a certificate in April 1996 if the application were approved by the local legislative body in May 1996 and a certificate of occupancy were granted for the facility in January 1996. Further, an exception would apply to a facility that was located in an existing industrial development district owned by a person who filed for an exemption certificate in February 1996 if the application were approved by the local legislative body in April 1996 and the real property portion of the application were denied by the State Tax Commission in September 1996.


If, in June 1997, a local unit passed a resolution designating a speculative building and approving an exemption certificate, and if the building were occupied in November 1995 and located in an industrial development district created in January 1996, the State Tax Commission would have to issue the certificate for the building from December 30, 1996, through December 30, 2006. If a local unit approved a request for a certificate in 1996 that was denied by the Commission due to the late receipt of the application, and a modified application were approved by the same local unit in 1997 and were subsequently approved by the Tax Commission, which issued an exemption certificate on May 27, 1997, the facility would have to be taxed under the Act as if it had been granted an exemption on December 30, 1996. If a local unit approved a certificate for a new facility on March 2, 1993, but reclassified it and approved a certificate for the same facility as a replacement facility on November 7, 1995, the Commission would have to issue a certificate for that facility that began December 30, 1996 and ended December 30, 2006.

MCL 207.559 - Legislative Analyst: N. Nagata


FISCAL IMPACT


The bill would increase State costs by the amount lost by schools. Additionally, the revenue of local units involved would decrease.


Date Completed: 1-28-98 - Fiscal Analyst: R. Ross



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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.