HOUSE BILL No. 5279

 

January 24, 2012, Introduced by Rep. Damrow and referred to the Committee on Tax Policy.

 

     A bill to provide for the exemption of certain property from

 

certain taxes; to levy and collect a specific tax upon the owners

 

of certain property; to provide for the disposition of the tax; to

 

prescribe the powers and duties of certain local government

 

officials; and to provide penalties.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"alternative commercial energy specific tax act".

 

     Sec. 2. As used in this act:

 

     (a) "Alternative commercial energy system" means a commercial

 

wind energy system, commercial biomass energy system, or commercial

 

photovoltaic energy system.

 

     (b) "Commercial biomass energy system" means personal property

 

that, when combined, forms a system that generates energy from a

 


process using residues from wood and paper products industries,

 

food production and processing, trees and grasses grown

 

specifically to be used as energy crops, and gaseous fuels produced

 

from solid biomass, animal waste, municipal wastes, or landfills,

 

which energy is sold commercially.

 

     (c) "Commercial photovoltaic energy system" means personal

 

property that, when combined, forms a device composed of 1 or more

 

photovoltaic cells or photovoltaic modules and an inverter or other

 

power conditioning unit that generates solar energy, which energy

 

is sold commercially.

 

     (d) "Commercial wind energy system" means personal property

 

that, when combined, forms an integrated unit consisting of a wind

 

turbine composed of a rotor, an electrical generator, a control

 

system, an inverter or other power conditioning unit, and a tower,

 

which uses moving air to produce energy, which energy is sold

 

commercially.

 

     (e) "Commission" means the state tax commission created by

 

1927 PA 360, MCL 209.101 to 209.107.

 

     (f) "Photovoltaic cell" means an integrated device consisting

 

of layers of semiconductor materials and electrical contacts

 

capable of converting incident light directly into electricity.

 

     (g) "Photovoltaic module" means an assembly of photovoltaic

 

cells.

 

     (h) "Public school" means that term as defined in section 5 of

 

the revised school code, 1976 PA 451, MCL 380.5.

 

     Sec. 3. An alternative commercial energy system is exempt from

 

ad valorem property taxes collected under the general property tax

 


act, 1893 PA 206, MCL 211.1 to 211.155, as provided under section

 

9m of the general property tax act, 1893 PA 206, MCL 211.9m.

 

     Sec. 4. (1) There is levied upon the owner of every

 

alternative commercial energy system a specific tax to be known as

 

the alternative commercial energy specific tax.

 

     (2) The amount of the alternative commercial energy specific

 

tax in each year shall be the greater of the following:

 

     (a) An amount based on the energy production capacity of the

 

alternative commercial energy system as follows:

 

     (i) If the alternative commercial energy system has an energy

 

production capacity of 1 megawatt or less, $15,400.00.

 

     (ii) If the alternative commercial energy system has an energy

 

production capacity of more than 1 megawatt but less than 3

 

megawatts, $24,100.00.

 

     (iii) If the alternative commercial energy system has an energy

 

production capacity of 3 megawatts or more, $27,450.00.

 

     (b) $4.00 per megawatt hour generated for sale.

 

     (3) The alternative commercial energy specific tax is an

 

annual tax, payable at the same times, in the same installments,

 

and to the same collecting officer or officers as taxes collected

 

under the general property tax act, 1893 PA 206, MCL 211.1 to

 

211.155.

 

     (4) The collecting officer or officers shall disburse the

 

alternative commercial energy specific tax collected as follows:

 

     (a) 40% to the general fund of the county in which the

 

alternative commercial energy system is located.

 

     (b) 40% to the general fund of the township in which the

 


alternative commercial energy system is located.

 

     (c) 20% to each public school located within the county in

 

which the alternative commercial energy system is located. The

 

alternative energy specific tax distributed under this subdivision

 

shall be distributed on a per capita basis as determined by the

 

pupil count conducted under the state school aid act of 1979, 1979

 

PA 94, MCL 388.1601 to 388.1896. The alternative energy specific

 

tax distributed under this subdivision shall not be used for wages,

 

pensions, or benefits.

 

     (5) The collecting officer or officers shall send a copy of

 

the amount of disbursement made to each county, township, and

 

public school under this section to the commission on a form

 

provided by the commission.

 

     Sec. 5. If the alternative commercial energy specific tax is

 

not paid as provided in section 4, the alternative commercial

 

energy system on which the alternative commercial energy specific

 

tax was levied is subject to collection at the same time and in the

 

same manner as personal property subject to ad valorem taxes

 

collected under the general property tax act, 1893 PA 206, MCL

 

211.1 to 211.155.

 

     Enacting section 1. This act does not take effect unless

 

Senate Bill No.____ or House Bill No. 5278(request no. 04015'11) of

 

the 96th Legislature is enacted into law.