SENATE BILL No. 572

 

 

September 14, 2017, Introduced by Senator ROBERTSON and referred to the Committee on Finance.

 

 

     A bill to amend 2014 PA 93, entitled

 

"Alternative state essential services assessment act,"

 

by amending section 7 (MCL 211.1077), as amended by 2016 PA 109.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7. (1) The department shall collect and administer the

 

alternative state essential services assessment as provided in this

 

section.

 

     (2) Not later than May 1 in each assessment year, the

 

department shall make available in electronic form to each eligible

 

claimant a statement for calculation of the assessment as provided

 

in section 5. That statement shall be developed from the

 

information submitted by the eligible claimant on the combined

 

document as required by sections 9m and 9n of the general property

 

tax act, 1893 PA 206, MCL 211.9m and 211.9n.

 


     (3) Not later than August 15 in each assessment year, each

 

eligible claimant shall electronically revise as necessary and

 

certify the completed statement and make full payment of the

 

assessment levied under section 5 for that assessment year as

 

calculated in section 5(2). The department may waive or delay the

 

electronic certification requirement at its discretion. The

 

department may accept a timely filed statement that calculates the

 

tax under this act that is transmitted and certified using

 

reporting software approved by the department, subject to audit

 

under subsection (6). A statement certified 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. The statement required under this subsection shall

 

not be subject to disclosure under the freedom of information act,

 

1976 PA 442, MCL 15.231 to 15.246.

 

     (4) If an eligible claimant does not certify the statement and

 

full payment of the assessment levied under section 5 by August 15,

 

the department shall issue a notice to the eligible claimant not

 

later than September 15. The notice shall include a statement

 

explaining the consequences of nonpayment as set forth in

 

subsection (5) and instructing the eligible claimant of its

 

potential responsibility under subsection (5)(e). An eligible

 

claimant shall submit payment in full by October 15 of the

 

assessment year along with a penalty of 1% per week on the unpaid

 

balance for each week payment is not made in full up to a maximum

 

of 5% of the total amount due and unpaid. For the eligible

 

claimant's first assessment year, the penalty shall be waived if


the eligible claimant certifies the statement and makes full

 

payment of the assessment levied under section 5 by September 15.

 

An eligible claimant may amend a certified statement for the

 

current year up to September 15. Payments made due to an amended

 

statement are subject to the penalties as described in this

 

subsection. The department shall issue refunds for overpayments due

 

to an amended statement. All refunds due to overpayment shall be

 

remitted without interest except as provided by section 37 of the

 

tax tribunal act, 1973 PA 186, MCL 205.737.

 

     (5) For any assessment year in which an eligible claimant does

 

not submit payment in full and any penalty due under subsection (4)

 

or (6) by October 15, or if the department discovers that the

 

property is not eligible under section 9m or 9n of the general

 

property tax act, 1893 PA 206, MCL 211.9m and 211.9n, all of the

 

following shall apply:

 

     (a) The department shall issue an order to rescind no later

 

than the first Monday in December 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 any parcel for

 

which payment in full and any penalty due have not been received or

 

for which the department discovers that the property is not

 

eligible under section 9m or 9n of the general property tax act,

 

1893 PA 206, MCL 211.9m and 211.9n.

 

     (b) Upon the request of the department, the state tax

 

commission shall issue an order to rescind no later than the first

 

Monday in December 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 for

 

any parcel for which payment in full and any penalty due have not

 

been received or for which the state tax commission discovers that

 

the property is not eligible personal property.

 

     (c) Upon the request of the department, the state tax

 

commission shall issue an order to rescind no later than the first

 

Monday in December 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, for any parcel for which payment in full and any

 

penalty due have not been received or for which the department

 

discovers that the property is not eligible personal property.

 

     (d) Upon the request of the department, the state tax

 

commission shall issue an order to rescind no later than the first

 

Monday in December 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, for any parcel

 

for which payment in full and any penalty due have not been

 

received or for which the department discovers that the property is

 

not eligible personal property.

 

     (e) The eligible claimant shall file with the assessor of the

 

township or city within 30 days of the date of the rescission

 

issued under subdivisions (a) to (d) a statement under section 19

 

of the general property tax act, 1893 PA 206, MCL 211.19, for all

 

property for which the exemption has been rescinded under this

 

section.


     (f) Within 60 days of a rescission under subdivisions (a) to

 

(d), the treasurer of the local tax collecting unit shall issue

 

amended tax bills for any taxes, including penalty and interest,

 

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, and that are owed as a result of the rescission.

 

     (6) An eligible claimant shall provide access to the books and

 

records, for audit purposes, relating to the location and

 

description; the date of purchase, lease, or acquisition; and the

 

purchase price, lease amount, or value of all personal property

 

owned by, leased by, or in the possession of that person or a

 

related entity if requested by the assessor of the township or

 

city, county equalization department, or department for the year in

 

which the statement is filed and the immediately preceding 3 years.

 

The department shall develop and implement an audit program which

 

includes, but is not limited to, the audit of statements submitted

 

under subsection (3) and amended statements submitted under

 

subsection (4) for the current calendar year and the 3 calendar

 

years immediately preceding the commencement of an audit. An

 

assessment as a result of an audit shall be paid in full within 35

 

days of issuance and shall include penalties and interest as

 

described in section 154(3) of the general property tax act, 1893

 

PA 206, MCL 211.154. Refunds as a result of an audit under this

 

subsection shall be without interest. The exemption for personal

 

property for which an assessment has been issued as a result of an

 

audit under this subsection shall be subject to the rescission

 

provisions of subsection (5) for the years of the assessment if


full payment is not timely made as required by this subsection.

 

     (7) An eligible claimant may appeal an assessment levied under

 

section 5 or a penalty or rescission under this section to the

 

Michigan tax tribunal by filing a petition not later than December

 

31 in that tax year. An eligible claimant may appeal an assessment

 

issued, including penalties, interest, or rescission, as a result

 

of an audit conducted under subsection (6) by filing a petition

 

with the Michigan tax tribunal within 35 days of the date of that

 

assessment's issuance. The department may appeal to the Michigan

 

tax tribunal by filing a petition for the current calendar year and

 

3 immediately preceding calendar years.

 

     (8) The department may require eligible claimants to annually

 

file by February 20 each year the dates required under the general

 

property tax act, 1893 PA 206, MCL 211.1 to 211.55, a combined

 

document that includes the form to claim the exemption under

 

sections 9f(9), 9m, and 9n of the general property tax act, 1893 PA

 

206, MCL 211.9f, 211.9m, and 211.9n, and under section 11a of 1974

 

PA 198, MCL 207.561a, a report of the fair market value and year of

 

acquisition by the first owner of eligible personal property, and

 

for any year before 2023, a statement under section 19 of the

 

general property tax act, 1893 PA 206, MCL 211.19. All of the

 

following apply to the filing of a combined document under this

 

subsection:

 

     (a) The combined document shall be in a form prescribed by the

 

department.

 

     (b) As provided in sections 9m and 9n of the general property

 

tax act, 1893 PA 206, MCL 211.9m and 211.9n, leasing companies are


not eligible to receive the exemption for qualified new personal

 

property and qualified previously existing personal property and

 

may not use the combined document prescribed in this section. With

 

respect to personal property that is the subject of a lease

 

agreement, regardless of whether the agreement constitutes a lease

 

for financial or tax purposes, all of the following apply:

 

     (i) If the personal property is eligible manufacturing

 

personal property, the lessee and lessor may elect that the lessee

 

report the leased personal property on the combined document.

 

     (ii) An election made by the lessor and the lessee under this

 

subdivision shall be made in a form and manner approved by the

 

department.

 

     (iii) Absent an election, the personal property shall be

 

reported by the lessor on the personal property statement unless

 

the exemption for eligible manufacturing personal property is

 

claimed by the lessee on the combined document.

 

     (c) For eligible personal property exempt under the Michigan

 

renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, an

 

eligible claimant shall report the fair market value of that

 

personal property at the time of acquisition by the first owner,

 

including the cost of freight, sales tax, installation, and other

 

capitalized costs, except capitalized interest.

 

     (d) The combined document shall be filed with the assessor of

 

the township or city in which the eligible personal property is

 

located.

 

     (e) The assessor shall transmit the information contained in

 

the combined document filed under this subsection, and other parcel


information required by the department, to the department in the

 

form and in the manner prescribed by the department no later than

 

April 1.

 

     Enacting section 1. This amendatory act takes effect December

 

31, 2017.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No. 570                                    

 

           of the 99th Legislature is enacted into law.