SENATE BILL No. 910

 

 

November 30, 2005, Introduced by Senator TOY and referred to the Committee on Finance.

 

 

 

     A bill to amend 1975 PA 228, entitled

 

"Single business tax act,"

 

(MCL 208.1 to 208.145) by adding section 35i.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 35i. (1) A taxpayer that provides transferred jobs to

 

this state may claim a credit against the tax imposed by this act

 

equal to 100% of the property taxes paid on tangible personal

 

property the use of which is directly related to the transferred

 

jobs. The credit allowed under this section shall only be available

 

for taxes paid the first year that the taxpayer pays property taxes

 

on that property which shall be the same tax year in which the

 

credit under this section based on those property taxes is claimed.

 

     (2) The credit under subsection (1) can be claimed only for

 


taxes paid in the 2007 or 2008 tax year.

 

     (3) If the taxpayer does not maintain the total number of

 

transferred jobs located in this state for 3 years after the year

 

in which a credit under this section was claimed, the following

 

percentage of the credit amount previously claimed under this

 

section shall be added back to the tax liability of the taxpayer in

 

that year:

 

     (a) If the total number of transferred jobs is less during the

 

first year after the year in which the credit was claimed, 100%.

 

     (b) If the total number of transferred jobs is less during the

 

second year after the year in which the credit was claimed and

 

subdivision (a) did not apply, 67%.

 

     (c) If the total number of transferred jobs is less during the

 

third year after the year in which the credit was claimed and

 

neither subdivision (a) nor (b) applied, 33%.

 

     (4) Personal property taxes used to calculate a credit under

 

this section shall not be used to calculate a credit under section

 

35d, 35f, 35g, or 35h.

 

     (5) The credit allowed under this section shall be calculated

 

after application of all other credits allowed under this act.

 

     (6) As used in this section and section 35j:

 

     (a) "High-technology activity" means that term as defined in

 

section 3 of the Michigan economic growth authority act, 1995 PA

 

24, MCL 207.803.

 

     (b) "Manufacturing jobs" are jobs for a company that has a

 

classification under sector 33, subsector 321, or subsector 322 of

 

the North American industrial classification system (NAICS).

 


     (c) "Property taxes" means any of the following:

 

     (i) Taxes collected under the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.157.

 

     (ii) Taxes levied under 1974 PA 198, MCL 207.551 to 207.572.

 

     (iii) Taxes levied under the obsolete property rehabilitation

 

act, 2000 PA 146, MCL 125.2781 to 125.2797.

 

     (iv) Any payments made by the taxpayer pursuant to a contract

 

with the Michigan strategic fund in connection with the creation of

 

a renaissance zone under the Michigan renaissance zone act, 1996 PA

 

376, MCL 125.2681 to 125.2696, to the extent that those payments

 

are made by the taxpayer to reimburse all taxing units for property

 

taxes that would otherwise be exempt under section 7ff of the

 

general property tax act, 1893 PA 206, MCL 211.7ff.

 

     (d) "Transferred jobs" means jobs that meet all of the

 

following criteria:

 

     (i) Are jobs that perform high-technology activity or

 

manufacturing jobs.

 

     (ii) Were located in a different state or different country

 

before being moved to this state in the immediately preceding tax

 

year.

 

     (iii) Represent an overall increase in full-time equivalent jobs

 

of the taxpayer in this state for the tax year above the total

 

number of full-time equivalent jobs of the taxpayer in the

 

immediately preceding tax year.

 

     (iv) Is not a job into which an employee transfers if the

 

employee worked in this state for the taxpayer, a related entity of

 

the taxpayer, or an entity with which the taxpayer files a

 


consolidated return under section 77 in another job prior to

 

beginning the transferred job.

 

     (v) The benefits for the employee in the transferred job

 

include coverage under health and welfare and noninsured benefit

 

plans, including, but not limited to, prescription coverage,

 

primary health care coverage, and hospitalization that is not

 

limited to emergency room services or subject to dollar limits,

 

deductibles, and coinsurance provisions that are not less favorable

 

than those for physical illness generally.