April 14, 2011, Introduced by Senator SCHUITMAKER and referred to the Committee on Energy and Technology.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 9i and 34c (MCL 211.9i and 211.34c), section
9i as added by 2002 PA 549 and section 34c as amended by 2006 PA
646.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9i. (1) Alternative energy personal property is exempt
from the collection of taxes under this act as provided in this
section.
(2)
If the Michigan next energy authority certifies
alternative
energy personal property as eligible for the exemption
under
this section as provided in the Michigan next energy
authority
act, the Michigan next energy authority shall forward a
copy
of that certification to all of the following:
(a)
The secretary of the local school district in which the
alternative
energy personal property is located.
(b)
The treasurer of the local tax collecting unit in which
the
alternative energy personal property is located.
(3)
Within 60 days after receipt of the certification of
alternative
energy personal property under subsection (2), the
school
board for the local school district in which the alternative
energy
personal property is located, with the written concurrence
of
the superintendent of the local school district, may adopt a
resolution
to not exempt that alternative energy personal property
from
a tax levied in that local school district under section 1212
of
the revised school code, 1976 PA 451, MCL 380.1212, or a tax
levied
under the revised school code, 1976 PA 451, MCL 380.1 to
380.1852,
to retire outstanding bonded indebtedness. If a
resolution
is adopted under this subsection, a copy of the
resolution
shall be forwarded to the Michigan next energy
authority,
to the treasurer of the local tax collecting unit, and
to
the state treasurer. If a resolution is not adopted under this
subsection,
that alternative energy personal property is exempt
from
a tax levied in that local school district under section 1212
of
the revised school code, 1976 PA 451, MCL 380.1212, or a tax
levied
under the revised school code, 1976 PA 451, MCL 380.1 to
380.1852,
to retire outstanding bonded indebtedness, for the period
provided
in subsection (5).
(4)
Within 60 days after receipt of the certification of
alternative
energy personal property under subsection (2), the
governing
body of the local tax collecting unit in which the
alternative
energy personal property is located may adopt a
resolution
to not exempt that alternative energy personal property
from
the taxes collected in that local tax collecting unit, except
taxes
collected under sections 1211 and 1212 of the revised school
code,
1976 PA 451, MCL 380.1211 and 380.1212, a tax levied under
the
revised school code, 1976 PA 451, MCL 380.1 to 380.1852, to
retire
outstanding bonded indebtedness, or the tax levied by this
state
under the state education tax act, 1993 PA 331, MCL 211.901
to
211.906. The clerk of the local tax collecting unit shall notify
in
writing the assessor of the local tax collecting unit in which
the
alternative energy personal property is located and the
legislative
body of each taxing unit that levies ad valorem
property
taxes in that local tax collecting unit in which the
alternative
energy personal property is located. Notice of the
meeting
at which the resolution will be considered shall be
provided
as required under the open meetings act, 1976 PA 267, MCL
15.261
to 15.275. Before acting on the resolution, the governing
body
of the local tax collecting unit shall afford the assessor and
a
representative of the affected taxing units an opportunity for a
hearing.
If a resolution is adopted under this subsection, a copy
of
the resolution shall be forwarded to the Michigan next energy
authority
and to the state treasurer. If a resolution is not
adopted
under this subsection, that alternative energy personal
property
is exempt from the taxes collected in that local tax
collecting
unit for the period provided in subsection (5), except
as
otherwise provided in this section.
(2) (5)
The exemption under this section
applies to taxes
levied
after December 31, 2002 and before January 1, 2013.
alternative energy personal property placed in service before
January 1, 2020.
(3) Any provision of this act or other law notwithstanding,
alternative energy personal property shall not be assessed as real
property.
(4) (6)
As used in this section:
(a) "Alternative energy personal property" means all of the
following:
(i) An alternative energy system.
(ii) An alternative energy vehicle.
(iii) All personal property of an alternative energy technology
business.
(iv) The personal property of a business that is not an
alternative energy technology business that is used solely for the
purpose of researching, developing, or manufacturing an alternative
energy technology.
(b) "Alternative energy system", "alternative energy vehicle",
"alternative energy technology", and "alternative energy technology
business" mean those terms as defined in the Michigan next energy
authority act, 2002 PA 593, MCL 207.821 to 207.827.
Sec. 34c. (1) Not later than the first Monday in March in each
year, the assessor shall classify every item of assessable property
according to the definitions contained in this section. Following
the March board of review, the assessor shall tabulate the total
number of items and the valuations as approved by the board of
review for each classification and for the totals of real and
personal property in the local tax collecting unit. The assessor
shall transmit to the county equalization department and to the
state tax commission the tabulation of assessed valuations and
other statistical information the state tax commission considers
necessary to meet the requirements of this act and 1911 PA 44, MCL
209.1 to 209.8.
(2) The classifications of assessable real property are
described as follows:
(a) Agricultural real property includes parcels used partially
or wholly for agricultural operations, with or without buildings.
For taxes levied after December 31, 2002, agricultural real
property includes buildings on leased land used for agricultural
operations. As used in this subdivision, "agricultural operations"
means the following:
(i) Farming in all its branches, including cultivating soil.
(ii) Growing and harvesting any agricultural, horticultural, or
floricultural commodity.
(iii) Dairying.
(iv) Raising livestock, bees, fish, fur-bearing animals, or
poultry, including operating a game bird hunting preserve licensed
under part 417 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.41701 to 324.41712, and also
including farming operations that harvest cervidae on site where
not less than 60% of the cervidae were born as part of the farming
operation. As used in this subparagraph, "livestock" includes, but
is not limited to, cattle, sheep, new world camelids, goats, bison,
privately owned cervids, ratites, swine, equine, poultry,
aquaculture, and rabbits. Livestock does not include dogs and cats.
(v) Raising, breeding, training, leasing, or boarding horses.
(vi) Turf and tree farming.
(vii) Performing any practices on a farm incident to, or in
conjunction with, farming operations. A commercial storage,
processing, distribution, marketing, or shipping operation is not
part of agricultural operations.
(b) Commercial real property includes the following:
(i) Platted or unplatted parcels used for commercial purposes,
whether wholesale, retail, or service, with or without buildings.
(ii) Parcels used by fraternal societies.
(iii) Parcels used as golf courses, boat clubs, ski areas, or
apartment buildings with more than 4 units.
(iv) For taxes levied after December 31, 2002, buildings on
leased land used for commercial purposes.
(c) Developmental real property includes parcels containing
more than 5 acres without buildings, or more than 15 acres with a
market value in excess of its value in use. Developmental real
property may include farm land or open space land adjacent to a
population center, or farm land subject to several competing
valuation influences.
(d) Industrial real property includes the following:
(i) Platted or unplatted parcels used for manufacturing and
processing purposes, with or without buildings.
(ii) Parcels used for utilities sites for generating plants,
pumping stations, switches, substations, compressing stations,
warehouses, rights-of-way, flowage land, and storage areas.
(iii) Parcels used for removal or processing of gravel, stone,
or mineral ores, whether valued by the local assessor or by the
state geologist.
(iv) For taxes levied after December 31, 2002, buildings on
leased land used for industrial purposes.
(v) For taxes levied after December 31, 2002, buildings on
leased land for utility purposes.
(e) Residential real property includes the following:
(i) Platted or unplatted parcels, with or without buildings,
and condominium apartments located within or outside a village or
city, which are used for, or probably will be used for, residential
purposes.
(ii) Parcels that are used for, or probably will be used for,
recreational purposes, such as lake lots and hunting lands, located
in an area used predominantly for recreational purposes.
(iii) For taxes levied after December 31, 2002, a home, cottage,
or cabin on leased land, and a mobile home that would be assessable
as real property under section 2a except that the land on which it
is located is not assessable because the land is exempt.
(f) Timber-cutover real property includes parcels that are
stocked with forest products of merchantable type and size, cutover
forest land with little or no merchantable products, and marsh
lands or other barren land. However, when a typical purchase of
this type of land is for residential or recreational uses, the
classification shall be changed to residential.
(3) The classifications of assessable personal property are
described as follows:
(a) Agricultural personal property includes any agricultural
equipment and produce not exempt by law.
(b) Commercial personal property includes the following:
(i) All equipment, furniture, and fixtures on commercial
parcels, and inventories not exempt by law.
(ii) All outdoor advertising signs and billboards.
(iii) Well drilling rigs and other equipment attached to a
transporting vehicle but not designed for operation while the
vehicle is moving on the highway.
(iv) Unlicensed commercial vehicles or commercial vehicles
licensed as special mobile equipment or by temporary permits.
(c) Industrial personal property includes the following:
(i) All machinery and equipment, furniture and fixtures, and
dies on industrial parcels, and inventories not exempt by law.
(ii) Personal property of mining companies valued by the state
geologist.
(d) For taxes levied before January 1, 2003, residential
personal property includes a home, cottage, or cabin on leased
land, and a mobile home that would be assessable as real property
under section 2a except that the land on which it is located is not
assessable because the land is exempt.
(e) Utility personal property includes the following:
(i) Electric transmission and distribution systems, substation
equipment, spare parts, gas distribution systems, and water
transmission and distribution systems.
(ii) Oil wells and allied equipment such as tanks, gathering
lines, field pump units, and buildings.
(iii) Inventories not exempt by law.
(iv) Gas wells with allied equipment and gathering lines.
(v) Oil or gas field equipment stored in the open or in
warehouses such as drilling rigs, motors, pipes, and parts.
(vi) Gas storage equipment.
(vii) Transmission lines of gas or oil transporting companies.
(4) For taxes levied before January 1, 2003, buildings on
leased land of any classification are improvements where the owner
of the improvement is not the owner of the land or fee, the value
of the land is not assessed to the owner of the building, and the
improvement has been assessed as personal property pursuant to
section 14(6).
(5) If the total usage of a parcel includes more than 1
classification, the assessor shall determine the classification
that most significantly influences the total valuation of the
parcel.
(6) The classification of real property on which an
alternative energy system is located shall be made without regard
to the existence of that alternative energy system and shall be
based on the use made by, or under the authority of, the fee title
holder or the fee title holder's tenant. As used in this
subsection, "alternative energy system" means that term as defined
in the Michigan next energy authority act, 2002 PA 593, MCL 207.821
to 207.827.
(7) (6)
An owner of any assessable property
who disputes the
classification of that parcel shall notify the assessor and may
protest the assigned classification to the March board of review.
An owner or assessor may appeal the decision of the March board of
review by filing a petition with the state tax commission not later
than June 30 in that tax year. The state tax commission shall
arbitrate the petition based on the written petition and the
written recommendations of the assessor and the state tax
commission staff. An appeal may not be taken from the decision of
the state tax commission regarding classification complaint
petitions and the state tax commission's determination is final and
binding for the year of the petition.
(8) (7)
The department of treasury may
appeal the
classification of any assessable property to the residential and
small claims division of the Michigan tax tribunal not later than
December 31 in the tax year for which the classification is
appealed.
(9) (8)
This section shall not be construed
to encourage the
assessment of property at other than the uniform percentage of true
cash value prescribed by this act.
(10) (9)
The assessor of each city or
township in which is
located property that is subject to payment in lieu of taxes under
subpart 14 of part 21 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.2152 to 324.2154, shall place
that property on an assessment roll that is separate from the
assessment roll prepared under section 24. For purposes of
calculating the debt limitation imposed by section 11 of article
VII of the state constitution of 1963, the separate assessment roll
for property that is subject to payment in lieu of taxes under
subpart 14 of part 21 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.2152 to 324.2154, required by
this subsection shall be combined with the assessment roll prepared
under section 24.