HB-4553, As Passed House, June 18, 2015HB-4553, As Passed Senate, June 18, 2015

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4553

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending sections 9f, 9m, and 9n (MCL 211.9f, 211.9m, and

211.9n), sections 9f and 9m as amended by 2014 PA 87 and section 9n

as amended by 2013 PA 154.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 9f. (1) The governing body of an eligible local assessing

district or, subject to subsection (4), the board of a ~~next~~ Next

Michigan development corporation in which an eligible local

assessing district is a constituent member may adopt a resolution

to exempt from the collection of taxes under this act all new

personal property owned or leased by an eligible business located

in 1 or more eligible districts or distressed parcels designated in

the resolution or an eligible ~~next~~ Next Michigan business as

provided in this section. The clerk of the eligible local assessing

district or the recording officer of a ~~next~~ Next Michigan

development corporation shall notify in writing the assessor of the

~~local tax collecting unit~~ township or city in which the eligible

district or distressed parcel is located and the legislative body

of each taxing unit that levies ad valorem property taxes in the

eligible local assessing district in which the eligible district or

distressed parcel is located. Before acting on the resolution, the

governing body of the eligible local assessing district or a ~~next~~

Next Michigan development corporation shall afford the assessor and

a representative of the affected taxing units an opportunity for a

hearing.

(2) The exemption under this section is effective on the

December 31 immediately succeeding the adoption of the resolution

by the governing body of the eligible local assessing district or a

~~next~~ Next Michigan development corporation and, except as otherwise

provided in subsection (8), shall continue in effect for a period

specified in the resolution. However, an exemption shall not be

granted under this section after December 31, 2012 for an eligible

business located in an eligible district identified in subsection

(10)(f)(ix) or in an eligible local assessing district identified

in subsection (10)(h)(ii). A copy of the resolution shall be filed

with the state tax commission, the state treasurer, and the

president of the Michigan strategic fund. A resolution is not

effective unless approved as provided in subsection (3).

(3) Not more than 60 days after receipt of a copy of the

resolution adopted by the governing body of an eligible local

assessing district under subsection (1), the state tax commission

shall determine if the new personal property subject to the

exemption is owned or leased by an eligible business and if the

eligible business is located in 1 or more eligible districts. If

the state tax commission determines that the new personal property

subject to the exemption is owned or leased by an eligible business

and that the eligible business is located in 1 or more eligible

districts, the state treasurer, with the written concurrence of the

president of the Michigan strategic fund, shall approve the

resolution adopted under subsection (1) if the state treasurer and

the president of the Michigan strategic fund determine that

exempting new personal property of the eligible business is

necessary to reduce unemployment, promote economic growth, and

increase capital investment in this state. In addition, for an

eligible business located in an eligible local assessing district

described in subsection (10)(h)(ii), the resolution adopted under

subsection (1) shall be approved if the state treasurer and the

president of the Michigan strategic fund determine that granting

the exemption is a net benefit to this state, that expansion,

retention, or location of an eligible business will not occur in

this state without this exemption, and that there is no significant

negative effect on employment in other parts of this state as a

result of the exemption.

(4) A ~~next~~ Next Michigan development corporation may only

adopt a resolution under subsection (1) exempting new personal

property from the collection of taxes under this act for new

personal property located in a ~~next~~ Next Michigan development

district. A ~~next~~ Next Michigan development corporation shall not

adopt a resolution under subsection (1) exempting new personal

property from the collection of taxes under this act without a

written agreement entered into with the eligible ~~next~~ Next Michigan

business subject to the exemption, which written agreement contains

a remedy provision that includes, but is not limited to, all of the

following:

(a) A requirement that the exemption under this section is

revoked if the eligible ~~next~~ Next Michigan business is determined

to be in violation of the provisions of the written agreement.

(b) A requirement that the eligible ~~next~~ Next Michigan

business may be required to repay all or part of the personal

property taxes exempted under this section if the eligible ~~next~~

Next Michigan business is determined to be in violation of the

provisions of the written agreement.

(5) Subject to subsections (6) and (8), if an existing

eligible business sells or leases new personal property exempt

under this section to an acquiring eligible business, the exemption

granted to the existing eligible business shall continue in effect

for the period specified in the resolution adopted under subsection

(1) for the new personal property purchased or leased from the

existing eligible business by the acquiring eligible business and

for any new personal property purchased or leased by the acquiring

eligible business.

(6) After December 31, 2007, an exemption for an existing

eligible business shall continue in effect for an acquiring

eligible business under subsection (5) only if the continuation of

the exemption is approved in a resolution adopted by the governing

body of an eligible local assessing district or the board of a ~~next~~

Next Michigan development corporation in which the eligible local

assessing district is a constituent member.

(7) Notwithstanding ~~the amendatory act that added section~~

~~2(1)(c),~~ 2000 PA 415, all of the following shall apply to an

exemption under this section that was approved by the state tax

commission on or before April 30, 1999, regardless of the effective

date of the exemption:

(a) The exemption shall be continued for the term authorized

by the resolution adopted by the governing body of the eligible

local assessing district and approved by the state tax commission

with respect to buildings and improvements constructed on leased

real property during the term of the exemption if the value of the

real property is not assessed to the owner of the buildings and

improvements.

(b) The exemption shall not be impaired or restricted with

respect to buildings and improvements constructed on leased real

property during the term of the exemption if the value of the real

property is not assessed to the owner of the buildings and

improvements.

(8) Notwithstanding any other provision of this section to the

contrary, ~~and subject to subsection (9),~~ if new personal property

exempt under this section on or after December 31, 2012 is eligible

manufacturing personal property, that eligible manufacturing

personal property shall remain exempt under this section until the

later of the following:

(a) The date that eligible manufacturing personal property

would otherwise be exempt from the collection of taxes under this

act under section 9m, 9n, or 9o.

(b) The date that eligible manufacturing personal property is

no longer exempt under the resolution adopted under subsection (1).

(9) ~~If either House Bill No. 6026 of the 96th Legislature,~~

~~2012 PA 408, or Senate Bill No. 822 of the 97th Legislature is~~

~~presented to the qualified electors of this state at an election to~~

~~be held on the August regular election date in 2014 and the bill~~

~~presented is not approved by a majority of the qualified electors~~

~~of this state voting on the question, subsection (8) shall not~~

~~apply after the date of that election.~~An eligible business that

owns or leases new personal property that is exempt under this

section and that is eligible personal property shall file an

affidavit with the assessor of the township or city in which the

eligible personal property is located not later than February 20 of

the first year that the new personal property is eligible personal

property in a manner provided by section 7(8) of the state

essential services assessment act, 2014 PA 92, MCL 211.1057. The

affidavit shall indicate that the new personal property is eligible

personal property. The affidavit shall be in a form prescribed by

the state tax commission.

(10) As used in this section:

(a) "Acquiring eligible business" means an eligible business

that purchases or leases assets of an existing eligible business,

including the purchase or lease of new personal property exempt

under this section, and that will conduct business operations

similar to those of the existing eligible business at the location

of the existing eligible business within the eligible district.

(b) "Authorized business" means that term as defined in

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

24, MCL 207.803.

as defined in section 9m.

(d) "Distressed parcel" means a parcel of real property

located in a city or village that meets all of the following

conditions:

(i) Is located in a qualified downtown revitalization

district. As used in this subparagraph, "qualified downtown

revitalization district" means an area located within 1 or more of

the following:

(A) The boundaries of a downtown district as defined in

section 1 of 1975 PA 197, MCL 125.1651.

(B) The boundaries of a principal shopping district or a

business improvement district as defined in section 1 of 1961 PA

120, MCL 125.981.

that is zoned and primarily used for business as determined by the

local governmental unit.

(ii) Meets 1 of the following conditions:

(A) Has a blighted or functionally obsolete building located

on the parcel. As used in this sub-subparagraph, "blighted" and

"functionally obsolete" mean those terms as defined in section 2 of

the brownfield redevelopment financing act, 1996 PA 381, MCL

125.2652.

(B) Is a vacant parcel that had been previously occupied.

(iii) Is zoned to allow for mixed use.

(e) "Eligible business" means, effective August 7, 1998, a

business engaged primarily in manufacturing, mining, research and

development, wholesale trade, office operations, or the operation

of a facility for which the business that owns or operates the

facility is an eligible taxpayer. For purposes of a ~~next~~ Next

Michigan development corporation, eligible business means only an

eligible ~~next~~ Next Michigan business. Eligible business does not

include a casino, retail establishment, professional sports

stadium, or that portion of an eligible business used exclusively

for retail sales. Professional sports stadium does not include a

sports stadium in existence on June 6, 2000 that is not used by a

professional sports team on the date of the resolution adopted

pursuant to subsection (1). As used in this subdivision, "casino"

means a casino regulated by this state ~~pursuant to~~ under the

Michigan gaming control and revenue act, 1996 IL 1, MCL 432.201 to

432.226, and all property associated or affiliated with the

operation of a casino, including, but not limited to, a parking

lot, hotel, motel, or retail store.

(f) "Eligible district" means 1 or more of the following:

(i) An industrial development district as that term is defined

in 1974 PA 198, MCL 207.551 to 207.572.

(ii) A renaissance zone as that term is defined in the

Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

125.2696.

(iii) An enterprise zone as that term is defined in the

enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123.

(iv) A brownfield redevelopment zone as that term is

designated under the brownfield redevelopment financing act, 1996

PA 381, MCL 125.2651 to 125.2672.

(v) An empowerment zone designated under subchapter U of

chapter 1 of the internal revenue code of 1986, 26 USC 1391 to

1397F.

(vi) An authority district or a development area as those

terms are defined in the tax increment finance authority act, 1980

PA 450, MCL 125.1801 to 125.1830.

(vii) An authority district as that term is defined in the

local development financing act, 1986 PA 281, MCL 125.2151 to

125.2174.

(viii) A downtown district or a development area as those

terms are defined in 1975 PA 197, MCL 125.1651 to 125.1681.

(ix) An area that contains an eligible taxpayer.

(x) A ~~next~~ Next Michigan development district.

(g) "Eligible distressed area" means 1 of the following:

(i) That term as defined in section 11 of the state housing

development authority act of 1966, 1966 PA 346, MCL 125.1411.

(ii) An area that contains an eligible taxpayer.

(h) "Eligible local assessing district" means a city, village,

or township that contains an eligible distressed area or that is a

party to an intergovernmental agreement creating a ~~next~~ Next

Michigan development corporation, or a city, village, or township

that meets 1 or more of the following conditions and is located in

a county all or a portion of which borders another state or Canada:

(i) Is currently served by not fewer than 4 of the following

existing services:

(A) Water.

(B) Sewer.

(D) Fire.

(E) Trash.

(F) Recycling.

(ii) Is party to an agreement under 1984 PA 425, MCL 124.21 to

124.30, with a city, village, or township that provides not fewer

than 4 of the following existing services:

(A) Water.

(B) Sewer.

(D) Fire.

(E) Trash.

(F) Recycling.

(i) "Eligible ~~next~~ Next Michigan business" means that term as

defined in section 3 of the Michigan economic growth authority act,

1995 PA 24, MCL 207.803.

(j) "Eligible personal property" means that term as defined in

section 3(e)(ii) or (iv) of the state essential services assessment

act, 2014 PA 92, MCL 211.1053.

(k) ~~(j)~~ "Eligible taxpayer" means a taxpayer that meets both

of the following conditions:

(i) Is an authorized business.

(ii) Is eligible for tax credits described in section 9 of the

Michigan economic growth authority act, 1995 PA 24, MCL 207.809.

(l) ~~(k)~~ "Existing eligible business" means an eligible

business identified in a resolution adopted under subsection (1)

for which an exemption has been granted under this section.

(m) (l) "New personal property" means personal property that

was not previously subject to tax under this act or was not

previously placed in service in this state and that is placed in an

eligible district after a resolution under subsection (1) is

approved. As used in this subdivision, for exemptions approved by

the state treasurer under subsection (3) after April 30, 1999, new

personal property does not include buildings described in section

14(6) and personal property described in section 8(h), (i), and

(j). For exemptions subject to resolutions adopted under subsection

(1) after December 31, 2014, new personal property does not include

eligible manufacturing personal property.

(n) ~~(m)~~ "Next Michigan development corporation" and "~~next~~ Next

Michigan development district" mean those terms as defined under

the ~~next~~ Next Michigan development act, 2010 PA 275, MCL 125.2951

to 125.2959.

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

thereafter, qualified new personal property for which an exemption

has been properly claimed under subsection (2) is exempt from the

collection of taxes under this act.

(2) A person shall claim the exemption under this section by

filing an affidavit with the ~~local tax collecting unit~~ assessor of

the township or city in which the qualified new personal property

is located as provided in subsection (3). The affidavit shall be in

a form prescribed by the state tax commission. An affidavit

claiming an exemption under this section applies to all existing

and subsequently acquired qualified new personal property. The

~~local tax collecting unit~~ assessor of the township or city shall

annually transmit the affidavits filed, or the information

contained in the affidavits filed, under this section, and ~~under~~

~~section 9n~~ other parcel information required by the department of

treasury, to the department of treasury in the form and in the

manner prescribed by the department of treasury no later than April

1. A person claiming an exemption under this section shall rescind

the claim of exemption by December 31 of the year in which exempted

property is no longer eligible for the exemption by filing with the

assessor of the township or city a rescission affidavit in a form

prescribed by the state tax commission. The assessor of the

township or city shall annually transmit the rescission affidavits

filed, or the information contained in the rescission affidavits

filed, under this section to the department of treasury in the form

and in the manner prescribed by the department of treasury no later

than April 1.

(3) If a person claiming an exemption under this section has

not filed an affidavit under this section in any prior year with

the ~~local tax collecting unit~~ assessor of the township or city in

which the qualified new personal property is located, that person

shall file the affidavit described under subsection (2) with that

~~local tax collecting unit~~ assessor not later than February 10 20 of

the first year for which the person is claiming the exemption for

qualified new personal property in the ~~local tax collecting~~

~~unit.~~township or city in a manner provided by section 7(8) of the

state essential services assessment act, 2014 PA 92, MCL 211.1057.

(4) Except for a person claiming an exemption under this

section for personal property that was subject to section 9f or

1974 PA 198, MCL 207.551 to 207.572, in 2015, if an affidavit

claiming the exemption under this section is filed as provided in

subsection (3) by February ~~10,~~ 20, 2016, and the person claiming

the exemption under this section complied with section 19(9) in

2015, or if the filing requirement under section 19(9) was not

applicable because the qualified new personal property was acquired

in 2015, the person claiming the exemption under this section is

not required to file a statement under section 19 for that

qualified new personal property in 2016. Except for a person

claiming an exemption under this section for personal property that

was subject to section 9f or 1974 PA 198, MCL 207.551 to 207.572,

in 2015, if an affidavit claiming the exemption under this section

is filed as provided in subsection (3), beginning in 2017, the

person claiming the exemption under this section is not required to

file a statement under section 19 for qualified new personal

property exempt under this section. For a person claiming an

exemption under this section for personal property that was subject

to section 9f or 1974 PA 198, MCL 207.551 to 207.572, in 2015, if

an affidavit claiming the exemption under this section is filed as

provided in subsection (3) and the person claiming the exemption

under this section complied with section 19(9) in 2015, the person

claiming the exemption under this section is not required to file a

statement under section 19 for that qualified new personal property

in the first year for which that person is claiming an exemption

under this section or in any subsequent year. For a person claiming

an exemption under this section for personal property that was

subject to section 9f or 1974 PA 198, MCL 207.551 to 207.572, in

2015, if an affidavit claiming the exemption under this section is

filed as provided in subsection (3), but the person claiming the

exemption under this section did not comply with section 19(9) in

2015, the person claiming the exemption under this section shall

file a statement under section 19 for that person's qualified new

personal property in the first year for which that person is

claiming an exemption under this section for qualified new personal

property, but that person is not required to file a statement under

section 19 for that qualified new personal property in any

subsequent year. If the person claiming the exemption under this

section has not filed an affidavit as required under subsection

(2), the personal property for which the person is claiming an

exemption is subject to the collection of taxes under this act and

that person shall file a statement under section 19.

(5) If the assessor of the ~~local tax collecting unit~~ township

or city believes that personal property for which an affidavit

claiming an exemption is filed under subsection (2) is not

qualified new personal property, the assessor may deny that claim

for exemption by notifying the person that filed the affidavit in

writing of the reason for the denial and advising the person that

the denial may be appealed to the board of review under section 30

or 53b. The assessor may deny a claim for exemption under this

subsection for the current year only. If the assessor denies a

claim for exemption, the assessor shall remove the exemption of

that personal property and amend the tax roll to reflect the denial

and the local treasurer shall within 30 days of the date of the

denial issue a corrected tax bill for any additional taxes.

(6) A person claiming an exemption for qualified new personal

property exempt under this section shall maintain books and records

and shall provide access to those books and records as provided in

section 22.

(7) If a person fraudulently claims an exemption for personal

property under this section, that person is subject to the

penalties provided for in section 21(2).

(8) As used in this section:

(a) "Affiliated person" means a sole proprietorship,

partnership, limited liability company, corporation, association,

flow-through entity, member of a unitary business group, or other

entity related to a person claiming an exemption under this

section.

(b) "Direct integrated support" means any of the following:

(i) Research and development related to goods produced in

industrial processing and conducted in furtherance of that

industrial processing.

(ii) Testing and quality control functions related to goods

produced in industrial processing and conducted in furtherance of

that industrial processing.

(iii) Engineering related to goods produced in industrial

processing and conducted in furtherance of that industrial

processing.

(iv) Receiving or storing equipment, materials, supplies,

parts, or components for industrial processing, or scrap materials

or waste resulting from industrial processing, at the industrial

processing site or at another site owned or leased by the owner or

lessee of the industrial processing site.

(v) Storing of finished goods inventory if the inventory was

produced by a business engaged primarily in industrial processing

and if the inventory is stored either at the site where it was

produced or at another site owned or leased by the business that

produced the inventory.

(vi) Sorting, distributing, or sequencing functions that

optimize transportation and just-in-time inventory management and

material handling for inputs to industrial processing.

personal property located on occupied real property if that

personal property is predominantly used in industrial processing or

direct integrated support, except that for personal property that

is construction in progress and part of a new facility not in

operation, eligible manufacturing personal property means all

personal property that is part of that new facility if that

personal property will be predominantly used in industrial

processing when the facility becomes operational. Personal property

that is not owned, leased, or used by the person who owns or leases

occupied real property where the personal property is located is

not eligible manufacturing personal property, unless the personal

property is located on the occupied real property to carry on a

current on-site business activity. Personal property that is placed

on occupied real property solely to qualify the personal property

for an exemption under this section or section 9n is not eligible

manufacturing personal property. Personal property located on

occupied real property is predominantly used in industrial

processing or direct integrated support if the result of the

following calculation is more than 50%:

(i) Multiply the original cost of all personal property that

is subject to the collection of taxes under this act and all

personal property that is exempt from the collection of taxes under

sections 7k, 9b, 9f, 9n, and 9o and this section that is located on

that occupied real property and that is not construction in

progress by its percentage of use in industrial processing or in

direct integrated support. Personal property is used in industrial

processing if it is not used to generate, transmit, or distribute

electricity for sale, if it is not utility personal property as

described in section 34c(3)(e), and if its purchase or use by the

person claiming the exemption would be eligible for exemption under

section 4t of the general sales tax act, 1933 PA 167, MCL 205.54t,

or section 4o of the use tax act, 1937 PA 94, MCL 205.94o. For an

item of personal property that is used in industrial processing,

its percentage of use in industrial processing shall equal the

percentage of the exemption the property would be eligible for

under section 4t of the general sales tax act, 1933 PA 167, MCL

205.54t, or section 4o of the use tax act, 1937 PA 94, MCL 205.94o.

Utility personal property as described in section 34c(3)(e) is not

used in direct integrated support.

(ii) Divide the result of the calculation under subparagraph

(i) by the total original cost of all personal property that is

subject to the collection of taxes under this act and all personal

property that is exempt from the collection of taxes under sections

7k, 9b, 9f, 9n, and 9o and this section that is located on that

occupied real property and that is not construction in progress.

(d) "Industrial processing" means that term as defined in

section 4t of the general sales tax act, 1933 PA 167, MCL 205.54t,

or section 4o of the use tax act, 1937 PA 94, MCL 205.94o.

Industrial processing does not include the generation,

transmission, or distribution of electricity for sale.

(e) "New personal property" means property that was initially

placed in service in this state or outside of this state after

December 31, 2012 or that was construction in progress on or after

December 31, 2012 that had not been placed in service in this state

or outside of this state before 2013.

(f) "Occupied real property" means all of the following:

(i) A parcel of real property that is entirely owned, leased,

or otherwise occupied by a person claiming an exemption under this

section or under section 9n.

(ii) Contiguous parcels of real property that are entirely

owned, leased, or otherwise occupied by a person claiming an

exemption under this section or under section 9n and that host a

single, integrated business operation engaged primarily in

industrial processing, direct integrated support, or both. A

business operation is not engaged primarily in industrial

processing, direct integrated support, or both if it engages in

significant business activities that are not directly related to

industrial processing or direct integrated support.

(iii) The portion of a parcel of real property that is owned,

leased, or otherwise occupied by a person claiming the exemption

under this section or under section 9n or by an affiliated person.

(g) "Original cost" means the fair market value of ~~eligible~~

~~manufacturing~~ personal property at the time of acquisition by the

~~current~~ first owner. There is a rebuttable presumption that the

acquisition price paid by the ~~current~~ first owner for ~~eligible~~

~~manufacturing~~ personal property reflects the ~~fair market value~~

original cost of that ~~eligible manufacturing~~ personal property. The

~~department~~ state tax commission may provide guidelines for 1 or

more of the following circumstances: ~~in which the actual~~

~~acquisition cost of eligible manufacturing personal property is not~~

~~determinative of the fair market value of that eligible~~

~~manufacturing personal property and for the basis of determining~~

~~fair market value of eligible manufacturing personal property in~~

~~those circumstances.~~

(i) Determining original cost of personal property when the

actual acquisition price paid by the first owner for personal

property is not determinative of the original cost of that personal

property.

(ii) Estimating original cost of personal property when the

actual acquisition price paid by the first owner for the personal

property is unknown.

(iii) Adjusting original cost of personal property when the

personal property is idle, is obsolete or has material

obsolescence, or is surplus.

(h) "Person" means an individual, partnership, corporation,

association, limited liability company, or any other legal entity.

(i) ~~(h)~~ "Qualified new personal property" means property that

meets all of the following conditions:

(i) Is eligible manufacturing personal property.

(ii) Is new personal property.

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

thereafter, qualified previously existing personal property for

which an exemption has been properly claimed under subsection (2)

is exempt from the collection of taxes under this act.

(2) A person shall claim the exemption under this section by

filing an affidavit with the ~~local tax collecting unit~~ assessor of

the township or city in which the qualified previously existing

personal property is located as provided in subsection (3). The

affidavit shall be in a form prescribed by the state tax

commission. ~~A person claiming an exemption for previously existing~~

~~personal property is only required to file the affidavit claiming~~

~~the exemption under this section for the first year for which the~~

~~exemption for that qualified previously existing personal property~~

~~is claimed in the local tax collecting unit.~~An affidavit claiming

an exemption under this section applies to all existing and

subsequently acquired qualified previously existing personal

property. The assessor of the township or city shall annually

transmit the affidavits filed, or the information contained in the

affidavits filed, under this section, and other parcel information

required by the department of treasury, to the department of

treasury in the form and in the manner prescribed by the department

of treasury no later than April 1. A person claiming an exemption

under this section shall rescind the claim of exemption by December

31 of the year in which exempted property is no longer eligible for

the exemption by filing with the assessor of the township or city a

rescission affidavit in a form prescribed by the state tax

commission. The assessor of the township or city shall annually

transmit the rescission affidavits filed, or the information

contained in the rescission affidavits filed, under this section to

the department of treasury in the form and in the manner prescribed

by the department of treasury no later than April 1.

(3) If a person claiming an exemption under this section has

not filed an affidavit under this section in any prior year with

the ~~local tax collecting unit~~ assessor of the township or city in

which the qualified previously existing personal property is

located claiming an exemption for that qualified previously

existing personal property, that person shall file the affidavit

described under subsection (2) with that ~~local tax collecting unit~~

assessor not later than February 10 20 of the first year for which

the person is claiming the exemption for that qualified previously

existing personal property in the ~~local tax collecting unit.~~

township or city in a manner provided by section 7(8) of the state

essential services assessment act, 2014 PA 92, MCL 211.1057. If an

affidavit claiming the exemption for qualified previously existing

personal property under this section is filed as provided in this

subsection and the person claiming an exemption for that qualified

previously existing personal property complied with section 19(9)

with respect to that qualified previously existing personal

property in 2015, or if the filing requirement under section 19(9)

was not applicable because the qualified previously existing

personal property was acquired in 2015 or later, the person

claiming the exemption under this section is not required to also

file a statement under section 19 for that qualified previously

existing personal property in the first year for which the

exemption is claimed or in any subsequent year. If an affidavit

claiming the exemption for qualified previously existing personal

property under this section is filed as provided in this subsection

but the person claiming the exemption under this section did not

comply with section 19(9) with respect to that qualified previously

existing personal property in 2015, the person claiming the

exemption under this section shall file a statement under section

19 for that qualified previously existing personal property in the

first year for which the person is claiming an exemption for that

qualified previously existing personal property, but the person is

not required to file a statement under section 19 for that

qualified previously existing personal property in any subsequent

year. If a person claiming an exemption for qualified previously

existing personal property has not filed an affidavit as required

under this section, that person's qualified previously existing

personal property is subject to the collection of taxes under this

act and that person shall file a statement under section 19.

(4) If the assessor of the ~~local tax collecting unit~~ township

or city believes that personal property for which an affidavit

claiming an exemption is filed under subsection (2) is not

qualified previously existing personal property, the assessor may

deny that claim for exemption by notifying the person that filed

the affidavit in writing of the reason for the denial and advising

the person that the denial may be appealed to the board of review

under section 30 or 53b. The assessor may deny a claim for

exemption under this subsection for the current year only. If the

assessor denies a claim for exemption, the assessor shall remove

the exemption of that personal property and amend the tax roll to

reflect the denial and the local treasurer shall within 30 days of

the date of the denial issue a corrected tax bill for any

additional taxes.

(5) A person claiming an exemption for qualified previously

existing personal property exempt under this section shall maintain

books and records and shall provide access to those books and

records as provided in section 22.

(6) If a person fraudulently claims an exemption for personal

property under this section, that person is subject to the

penalties provided for in section 21(2).

(7) As used in this section:

(a) "Direct integrated support", "eligible manufacturing

personal property", and "industrial processing" mean those terms as

defined in section 9m.

(b) "Person" means an individual, partnership, corporation,

association, limited liability company, or any other legal entity.

means personal property that meets ~~all~~ both of the following

conditions:

(i) Is eligible manufacturing personal property.

(ii) ~~Meets any of the following conditions:~~Was first placed in

service within this state or outside this state more than 10 years

before the current calendar year.

~~(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.~~