May 5, 2015, Introduced by Rep. Maturen and referred to the Committee on Tax Policy.
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
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 Michigan business as provided in
this section. The clerk of the eligible local assessing district or
the recording officer of a 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 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 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 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 Michigan development district. A 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 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 Michigan business is determined to be
in violation of the provisions of the written agreement.
(b) A requirement that the eligible next Michigan business may
be required to repay all or part of the personal property taxes
exempted under this section if the eligible 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
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 10 of
the first year that the new personal property is eligible personal
property. 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.
(c) "Eligible manufacturing personal property" means that term
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.
(C) The boundaries of the local governmental unit in an area
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 Michigan
development corporation, eligible business means only an eligible
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 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 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.
(C) Police.
(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.
(C) Police.
(D) Fire.
(E) Trash.
(F) Recycling.
(i) "Eligible 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
Michigan development district" mean those terms as defined under
the 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 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.
(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, 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.
(c) "Eligible manufacturing personal property" means, except
as otherwise provided in this subdivision, all personal property
located on occupied real property if that personal property is
predominantly used in industrial processing or direct integrated
support. 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 is likely to 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
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, 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, 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 of
that eligible manufacturing personal property. The department may
provide guidelines for 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.
(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 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. 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.
(c) (b)
"Qualified previously existing
personal property"
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.