October 13, 2011, Introduced by Rep. Stamas and referred to the Committee on Government Operations.
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 14 (MCL 207.564), as amended by 2008 PA 457.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 14. (1) The amount of the industrial facility tax, in
each year for a replacement facility, shall be determined by
multiplying the total mills levied as ad valorem taxes for that
year by all taxing units within which the facility is situated by
the taxable value of the real and personal property of the obsolete
industrial property for the tax year immediately preceding the
effective date of the industrial facilities exemption certificate
after deducting the taxable value of the land and of the inventory
as specified in section 19.
(2) The amount of the industrial facility tax, in each year
for a new facility or a speculative building for which an
industrial facilities exemption certificate became effective before
January 1, 1994, shall be determined by multiplying the taxable
value of the facility excluding the land and the inventory personal
property by the sum of 1/2 of the total mills levied as ad valorem
taxes for that year by all taxing units within which the facility
is located other than mills levied for school operating purposes by
a local school district within which the facility is located or
mills levied under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906, plus 1/2 of the number of mills levied for
local school district operating purposes in 1993.
(3) Except as provided in subsection (4), the amount of the
industrial facility tax in each year for a new facility or a
speculative building for which an industrial facilities exemption
certificate becomes effective after December 31, 1993, shall be
determined by multiplying the taxable value of the facility
excluding the land and the inventory personal property by the sum
of 1/2 of the total mills levied as ad valorem taxes for that year
by all taxing units within which the facility is located other than
mills levied under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906, plus, subject to section 14a, the number of
mills levied under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906.
(4) For taxes levied after December 31, 2007, for the personal
property tax component of an industrial facilities exemption
certificate for a new facility or a speculative building that is
sited on real property classified as industrial real property under
section 34c of the general property tax act, 1893 PA 206, MCL
211.34c, the amount of the industrial facility tax in each year for
a new facility or a speculative building shall be determined by
multiplying the taxable value of the facility excluding the land
and the inventory personal property by the sum of 1/2 of the total
mills levied as ad valorem taxes for that year by all taxing units
within which the facility is located other than mills levied on
industrial personal property under the state education tax act,
1993 PA 331, MCL 211.901 to 211.906, and the number of mills from
which
the industrial personal property is exempt under section
1211(1) of the revised school code, 1976 PA 451, MCL 380.1211. For
taxes levied after December 31, 2007, for the personal property tax
component of an industrial facilities exemption certificate for a
new facility or a speculative building that is sited on real
property classified as commercial real property under section 34c
of the general property tax act, 1893 PA 206, MCL 211.34c, the
amount of the industrial facility tax in each year for a new
facility or a speculative building shall be determined by
multiplying the taxable value of the facility excluding the land
and the inventory personal property by the sum of 1/2 of the total
mills levied as ad valorem taxes for that year by all taxing units
within which the facility is located other than the number of mills
from which the property is exempt under section 1211(1) of the
revised school code, 1976 PA 451, MCL 380.1211. As used in this
subsection, "industrial personal property" means the following:
(a) Except as otherwise provided in subdivision (b), personal
property classified under section 34c of the general property tax
act, 1893 PA 206, MCL 211.34c, as industrial personal property.
(b) Industrial personal property does not include gas, steam,
or coal-fired turbines used in the generation of electricity.
(5) For a termination or revocation of only the real property
component, or only the personal property component, of an
industrial facilities exemption certificate as provided in this
act, the valuation and the tax determined using that valuation
shall be reduced proportionately to reflect the exclusion of the
component with respect to which the termination or revocation has
occurred.
Enacting section 1. This amendatory act is intended to clarify
and express the original intent of the legislature concerning the
eligibility of gas, steam, or coal-fired turbines used in the
generation of electricity for the exemption provided under section
14 of 1974 PA 198, MCL 207.564. This amendatory act is retroactive
and is effective for taxes levied after December 31, 2007.