SB-0830, As Passed Senate, March 4, 2014
February 25, 2014, Introduced by Senators NOFS, PAPPAGEORGE, SCHUITMAKER, WARREN, MOOLENAAR and BRANDENBURG and referred to the Committee on Finance.
A bill to levy a tax on certain personal property; to provide
for the administration, collection, and distribution of the tax; to
impose certain duties on persons and certain state departments; to
impose penalties; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"alternative state essential services assessment act".
Sec. 3. As used in this act:
(a) "Acquisition cost" means the fair market value of eligible
personal property at the time of acquisition by the current owner,
including the cost of freight, sales tax, and installation, and
other capitalized costs, except capitalized interest. There is a
rebuttable presumption that the acquisition price paid by the
current owner for eligible personal property, and any costs of
freight, sales tax, and installation, and other capitalized costs,
except capitalized interest, reflect the fair market value of the
eligible personal property. For personal property exempt under
section 9m or 9n of the general property tax act, 1893 PA 206, MCL
211.9m and 211.9n, that would otherwise be exempt under section 7k
of the general property tax act, 1893 PA 206, MCL 211.7k, and for
personal property subject to an extended industrial facilities
exemption certificate under section 11a of 1974 PA 198, MCL
207.561a, acquisition cost means 1/2 of the fair market value of
that eligible personal property at the time of acquisition by the
current owner. The acquisition cost for eligible personal property
exempt under the renaissance zone act, 1996 PA 376, MCL 125.2681 to
125.2696, is $0.00 except for the 3 years immediately preceding the
expiration of the exemption of that eligible personal property
under the renaissance zone act, 1996 PA 376, MCL 125.2681 to
125.2696, during which period of time the acquisition cost for that
eligible personal property means the fair market value of that
eligible personal property at the time of acquisition by the
current owner multiplied by the percentage reduction in the
exemption as provided in section 9(3) of the renaissance zone act,
1996 PA 376, MCL 125.2689. The department of treasury may provide
guidelines for circumstances in which the actual acquisition price
is not determinative of fair market value and the basis of
determining fair market value in those circumstances, including
when that property is idle, obsolete, or surplus.
(b) "Assessment" means the alternative state essential
services assessment levied under section 5.
(c) "Assessment year" means the year in which the alternative
state essential services assessment levied under section 5 is due.
(d) "Eligible claimant" means a person that owns, leases, or
is in the possession of eligible personal property.
(e) "Eligible personal property" means personal property
exempt from the tax levied under the state essential services
assessment act and determined to be subject to the alternative
state essential services assessment as provided in section 9 of the
state essential services assessment act.
Sec. 5. (1) Beginning January 1, 2016, the alternative state
essential services assessment is levied on all eligible personal
property as provided in this section.
(2) The assessment under this section is a state tax on the
eligible personal property owned by, leased to, or in the
possession of an eligible claimant on December 31 of the year
immediately preceding the assessment year and shall be calculated
as follows:
(a) For eligible personal property purchased by the eligible
claimant in a year 1 to 5 years before the assessment year,
multiply the acquisition cost of the eligible personal property by
50% of the mills levied under section 5(2)(a) of the state
essential services assessment act.
(b) For eligible personal property purchased by the eligible
claimant in a year 6 to 10 years before the assessment year,
multiply the acquisition cost of the eligible personal property by
50% of the mills levied under section 5(2)(b) of the state
essential services assessment act.
(c) For eligible personal property purchased by the eligible
claimant in a year more than 10 years before the assessment year,
multiply the acquisition cost of the eligible personal property by
50% of the mills levied under section 5(2)(c) of the state
essential services assessment act.
Sec. 7. (1) The department of treasury shall collect and
administer the alternative state essential services assessment as
provided in this section.
(2) Not later than March 1 in each assessment year, the
department of treasury shall send to each eligible claimant a
statement for calculation of the assessment as provided in section
5. The statement shall be in a form prescribed by the department of
treasury.
(3) Not later than September 15 in each assessment year, each
eligible claimant shall submit to the department of treasury the
completed statement and full payment of the assessment levied under
section 5 for that assessment year as calculated in section 5(2). A
statement submitted by an eligible claimant shall include all of
the eligible claimant's eligible personal property located in this
state subject to the assessment levied under section 5.
(4) If an eligible claimant does not submit the statement and
full payment of the assessment levied under section 5 for that
assessment year as calculated under section 5(2), all of the
following shall apply:
(a) The department of treasury shall rescind for the
assessment year any exemption described in section 9m or 9n of the
general property tax act, 1893 PA 206, MCL 211.9m and 211.9n,
granted for the eligible personal property.
(b) The state tax commission shall rescind for the assessment
year any exemption under section 9f of the general property tax
act, 1893 PA 206, MCL 211.9f, which exemption was approved under
section 9f of the general property tax act, 1893 PA 206, MCL
211.9f, after 2013.
(c) The state tax commission shall rescind for the assessment
year any exemption for eligible personal property subject to an
extended industrial facilities exemption certificate under section
11a of 1974 PA 198, MCL 207.561a.
(d) The state tax commission shall rescind for the assessment
year any extended exemption for eligible personal property under
section 9f(8)(a) of the general property tax act, 1893 PA 206, MCL
211.9f.
(e) All taxes due as a result of a rescission by the
department of treasury or by the state tax commission under
subdivisions (a) to (d) that were not billed under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155, or under 1974
PA 198, MCL 207.551 to 207.572, on the summer bill shall be billed
under the general property tax act, 1893 PA 206, MCL 211.1 to
211.155, or under 1974 PA 198, MCL 207.551 to 207.572, on the
winter tax bill.
(5) The department of treasury or any eligible claimant may
appeal any statement submitted under subsection (3) to the state
tax commission. The state tax commission shall arbitrate any appeal
under this subsection. The department of treasury or any eligible
claimant may appeal the decision of the state tax commission to the
Michigan tax tribunal.
Sec. 9. Proceeds of the assessment collected under section 7
shall be credited to the general fund.
Enacting section 1. This act does not take effect unless
Senate Bill No.822 of
the 97th Legislature is 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.