SB-1304, As Passed Senate, June 24, 2004                                    

SUBSTITUTE FOR

SENATE BILL NO. 1304

                                                                             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 11 (MCL 207.561), as amended by 2001 PA 157.            

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 11. (1) Except as provided in  subsection subsections

2   (6) and (7), there is levied upon every owner of a speculative              

3   building, a new facility, or a replacement facility to which an             

4   industrial facilities exemption certificate is issued a specific            

5   tax to be known as the industrial facility tax and an                       

6   administrative fee calculated in the same manner and at the same            

1   rate that the local tax collecting unit imposes on ad valorem               

2   taxes collected under the general property tax act, 1893 PA 206,            

3   MCL 211.1 to 211.157.                                                       

4       (2) The industrial facility tax and administrative fee are to               

5   be paid annually, at the same times, in the same installments,              

6   and to the same officer or officers as taxes and administrative             

7   fees, if any, imposed under the general property tax act, 1893 PA           

8   206, MCL 211.1 to 211.157, are payable.  Except as otherwise                

9   provided in this section, the officer or officers shall disburse            

10  the industrial facility tax payments received each year to and              

11  among the state, cities, townships, villages, school districts,             

12  counties, and authorities, at the same times and in the same                

13  proportions as required by law for the disbursement of taxes                

14  collected under the general property tax act, 1893 PA 206, MCL              

15  211.1 to 211.157.  To determine the proportion for the                      

16  disbursement of taxes under this subsection and for attribution             

17  of taxes under subsection (5) for taxes collected under                     

18  industrial facilities exemption certificates issued before                  

19  January 1, 1994, the number of mills levied for local school                

20  district operating purposes to be used in the calculation shall             

21  equal the number of mills for local school district operating               

22  purposes levied in 1993 minus the number of mills levied under              

23  the state education tax act, 1993 PA 331, MCL 211.901 to 211.906,           

24  for the year for which the disbursement is calculated.                      

25      (3) Except as provided by subsections (4) and (5), for an                   

26  intermediate school district receiving state aid under section              

27  56, 62, or 81 of the state school aid act of 1979, 1979 PA 94,              

1   MCL 388.1656, 388.1662, and 388.1681, of the amount that would              

2   otherwise be disbursed to or retained by the intermediate school            

3   district, all or a portion, to be determined on the basis of the            

4   tax rates being utilized to compute the amount of the state                 

5   school aid, shall be paid instead to the state treasury to the              

6   credit of the state school aid fund established by section 11 of            

7   article IX of the state constitution of 1963.  If the sum of any            

8   commercial facilities taxes prescribed by the commercial                    

9   redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, and the             

10  industrial facility taxes paid to the state treasury to the                 

11  credit of the state school aid fund that would otherwise be                 

12  disbursed to the local or intermediate school district, under               

13  section 12 of the commercial redevelopment act, 1978 PA 255, MCL            

14  207.662, and this section, exceeds the amount received by the               

15  local or intermediate school district under sections 56, 62, and            

16  81 of the state school aid act of 1979, 1979 PA 94, MCL 388.1656,           

17  388.1662, and 388.1681, the department of treasury shall allocate           

18  to each eligible local or intermediate school district an amount            

19  equal to the difference between the sum of the commercial                   

20  facilities taxes and the industrial facility taxes paid to the              

21  state treasury to the credit of the state school aid fund and the           

22  amount the local or intermediate school district received under             

23  sections 56, 62, and 81 of the state school aid act of 1979, 1979           

24  PA 94, MCL 388.1656, 388.1662, and 388.1681.  This subsection               

25  does not apply to taxes levied for either of the following:                 

26      (a) Mills allocated to an intermediate school district for                  

27  operating purposes as provided for under the property tax                   

1   limitation act, 1933 PA 62, MCL 211.201 to 211.217a.                        

2       (b) An intermediate school district that is not receiving                   

3   state aid under section 56 or 62 of the state school aid act of             

4   1979, 1979 PA 94, MCL 388.1656 and 388.1662.                                

5       (4) For industrial facilities taxes levied before 1994, a                   

6   local or intermediate school district shall receive or retain its           

7   industrial facility tax payment that is levied in any year and              

8   becomes a lien before December 1 of the year if the district                

9   files a statement with the state treasurer not later than June 30           

10  of the year certifying that the district does not expect to                 

11  receive state school aid payments under section 56, 62, or 81 of            

12  the state school aid act of 1979, 1979 PA 94, MCL 388.1656,                 

13  388.1662, and 388.1681, in the state fiscal year commencing in              

14  the year this statement is filed and if the district did not                

15  receive state school aid payments under section 56, 62, or 81 of            

16  the state school aid act of 1979, 1979 PA 94, MCL 388.1656,                 

17  388.1662, and 388.1681, for the state fiscal year concluding in             

18  the year the statement required by this subsection is filed.                

19  However, if a local or intermediate school district receives or             

20  retains its summer industrial facility tax payment under this               

21  subsection and becomes entitled to receive state school aid                 

22  payments under section 56, 62, or 81 of the state school aid act            

23  of 1979, 1979 PA 94, MCL 388.1656, 388.1662, and 388.1681, in the           

24  state fiscal year commencing in the year in which it filed the              

25  statement required by this subsection, the district immediately             

26  shall pay to the state treasury to the credit of the state school           

27  aid fund an amount of the summer industrial facility tax payments           

1   that would have been paid to the state treasury to the credit of            

2   the state school aid fund under subsection (3) had not this                 

3   subsection allowed the district to receive or retain the summer             

4   industrial facility tax payment.                                            

5       (5) For industrial facilities taxes levied after 1993, the                  

6   amount to be disbursed to a local school district, except for               

7   that amount of tax attributable to mills levied under section               

8   1211(2) or 1211c of the revised school code, 1976 PA 451, MCL               

9   380.1211 and 380.1211c, and mills that are not included as mills            

10  levied for school operating purposes under section 1211 of the              

11  revised school code, 1976 PA 451, MCL 380.1211, shall be paid to            

12  the state treasury and credited to the state school aid fund                

13  established by section 11 of article IX of the state constitution           

14  of 1963.                                                                    

15      (6) A speculative building, a new facility, or a replacement                

16  facility located in a renaissance zone under the Michigan                   

17  renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, is             

18  exempt from the industrial facility tax levied under this act to            

19  the extent and for the duration provided pursuant to the Michigan           

20  renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696,                

21  except for that portion of the industrial facility tax                      

22  attributable to a special assessment or a tax described in                  

23  section 7ff(2) of the general property tax act, 1893 PA 206, MCL            

24  211.7ff.  The industrial facility tax calculated under this                 

25  subsection shall be disbursed proportionately to the local taxing           

26  unit or units that levied the special assessment or the tax                 

27  described in section 7ff(2) of the general property tax act, 1893           

1   PA 206, MCL 211.7ff.                                                        

2   (7) Upon application for an exemption under this subsection                 

3   by a qualified start-up business, the governing body of a local             

4   tax collecting unit may adopt a resolution to exempt a                      

5   speculative building, a new facility, or a replacement facility             

6   of a qualified start-up business from the collection of the                 

7   industrial facility tax levied under this act in the same manner            

8   and under the same terms and conditions as provided for the                 

9   exemption in section 7hh of the general property tax act, 1893 PA           

10  206, MCL 211.7hh.  The clerk of the local tax collecting unit               

11  shall notify in writing the assessor of the local tax collecting            

12  unit and the legislative body of each taxing unit that levies ad            

13  valorem property taxes in the local tax collecting unit.  Before            

14  acting on the resolution, the governing body of the local tax               

15  collecting unit shall afford the assessor and a representative of           

16  the affected taxing units an opportunity for a hearing.  If a               

17  resolution authorizing the exemption is adopted in the same                 

18  manner as provided in section 7hh of the general property tax               

19  act, 1893 PA 206, MCL 211.7hh, a speculative building, a new                

20  facility, or a replacement facility owned or operated by a                  

21  qualified start-up business is exempt from the industrial                   

22  facility tax levied under this act, except for that portion of              

23  the industrial facility tax attributable to a special assessment            

24  or a tax described in section 7ff(2) of the general property tax            

25  act, 1893 PA 206, MCL 211.7ff, for the year in which the                    

26  resolution is adopted.  A qualified start-up business is not                

27  eligible for an exemption under this subsection for more than 5             

1   years.  The industrial facility tax calculated under this                   

2   subsection shall be disbursed proportionately to the taxing unit            

3   or units that levied the special assessment or the tax described            

4   in section 7ff(2) of the general property tax act, 1893 PA 206,             

5   MCL 211.7ff.  As used in this subsection, "qualified start-up               

6   business" means that term as defined in section 31a of the single           

7   business tax act, 1975 PA 228, MCL 208.31a.