PLANT REHABILITATION ABATEMENTS - S.B. 521: UPDATED FLOOR ANALYSIS

Senate Bill 521 (Substitute S-1as reported by the Committee of the Whole)

Sponsor: Senator John J.H. Schwarz, M.D.

Committee: Economic Development, International Trade and Regulatory Affairs

CONTENT

The bill would amend the Plant Rehabilitation and Industrial Development Districts Act to specify that except as otherwise provided, if an industrial facilities exemption certificate were filed and the application were approved by the local governmental unit in October 1996, but the application were denied by the State Tax Commission in December 1996, then the commencement of the restoration, replacement, or construction of the facility would not have to have occurred six months before the filing of the application for the exemption certificate with the local unit.

Further, notwithstanding any other provision of the Act, if, in June 1997, a local governmental unit passed a resolution designating a speculative building and approving an industrial facilities exemption certificate, the State Tax Commission would have to issue the certificate for the speculative building from December 30, 1996, through December 30, 2006. The speculative building would have to have been occupied in November 1995, and be located in an industrial development district created in January 1996.

MCL 207.559 - Legislative Analyst: N. Nagata

FISCAL IMPACT

The fiscal impact for the local units involved, if they are presently collecting property taxes from the described businesses, would be a reduction in the local units' property tax collections.

Date Completed: 6-11-97 - Fiscal Analyst: R. Ross

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.