SB-1071, As Passed House, December 13, 2012

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1071

(As amended December 13, 2012)

     A bill to amend 1893 PA 206, entitled

"The general property tax act,"

(MCL 211.1 to 211.155) by adding section 9n.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 9n. (1) Beginning December 31, 2015 and each year

thereafter, qualified previously existing personal property is

exempt from the collection of taxes under this act.

     (2) An owner of qualified previously existing personal

property shall claim the exemption under this section by filing an

affidavit with the local tax collecting unit in which the qualified

previously existing personal property is located and the department

of treasury not later than [February 20]. The affidavit shall be in a

 form

prescribed by the department of treasury. An owner of qualified

Senate Bill No. 1071 (H-1) as amended December 13, 2012

previously existing personal property is only required to file the

affidavit claiming the exemption under this section in the first

year in which the exemption for that qualified previously existing

personal property is claimed.

     (3) If an affidavit claiming the exemption under this section

is filed as provided in subsection (2), the owner of that qualified

previously existing personal property is not required to also file

a statement under section 19 for that qualified previously existing

personal property in that tax year or any succeeding tax year.

     (4) As used in this section:

     (a) "Direct integrated support" means research and development

functions, testing and quality control functions, engineering

functions, [warehousing facilities that directly support the owner or

 lessee engaging in industrial processing and that store tangible

personal property owned by that owner or lessee, and sorting and distribution centers that optimize transportation and use just-in-time inventory management and material handling for inputs to industrial processing.]

(b) "Eligible manufacturing personal property" means all

personal property that is located on a parcel of real property if

that personal property is used more than 50% of the time in

industrial processing or in direct integrated support. The

percentage of use of personal property in industrial processing or

in direct integrated support shall be determined in the following

manner:

     (i) Multiply the true cash value of each individual item of

personal property located on that parcel of real property by its

percentage of use in industrial processing or in direct integrated

support.

     (ii) Add the result of the calculation under subparagraph (i)

for all personal property located on that parcel of real property.

Senate Bill No. 1071 (H-1) as amended December 13, 2012

     (iii) Divide the result of the calculation under subparagraph

(ii) by the total true cash value of all personal property located

on that parcel of real property.

     (c) "Industrial processing" means the conversion or

conditioning of tangible personal property by changing the form,

composition, quality, combination, or character of the property for

ultimate sale at retail or for use in the manufacturing of a

product to ultimately be sold at retail. Industrial processing does

not include the generation of electricity for sale.

     (d) "Qualified previously existing personal property" means

personal property that meets all of the following conditions:

     (i) Is eligible manufacturing personal property.

     (ii) Meets any of the following conditions:

     (A) Has been subject to or exempt from the collection of taxes

under this act for the immediately preceding 10 years.

     (B) If that personal property was located both outside of and

within this state in the immediately preceding 10 years, that

personal property was subject to or exempt from the collection of

taxes under this act, or would have been subject to or exempt from

the collection of taxes under this act if located in this state,

for the immediately preceding 10 years.

     (C) If that personal property was located outside of this

state in the immediately preceding 10 years, that personal property

would have been subject to or exempt from the collection of taxes

under this act for the immediately preceding 10 years if that

personal property had been located in this state.

[Enacting section 1. Section 9n of the general property tax act, 1893 PA 206, MCL 211.9n, as added by this amendatory act, is repealed if House Bill No. 6026 of the 96th Legislature is not approved by a majority of the qualified electors of this state voting on the question at an election to be held on the August regular election date in 2014.]