SENATE BILL NO. 992


  March 4, 1998, Introduced by Senators BULLARD, BOUCHARD and
            DUNASKISS and referred to the Committee on Economic
            Development, International Trade and Regulatory Affairs.
     


        A bill to amend 1974 PA 198, entitled

   "An act to provide for the establishment of plant rehabilitation
   districts and industrial development districts in local govern-
   mental units; to provide for the exemption from certain taxes; to
   levy and collect a specific tax upon the owners of certain facil-
   ities; to provide for the disposition of the tax; to provide for
   the obtaining and transferring of an exemption certificate and to
   prescribe the contents of those certificates; to prescribe the
   powers and duties of the state tax commission and certain offi-
   cers of local governmental units; and to provide penalties,"

   by amending sections 6 and 7 (MCL 207.556 and 207.557), section 6

   as amended by 1996 PA 323 and section 7 as amended by 1996

   PA 513.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 6.  The legislative body of the local governmental

 2    unit, not more than 60 days after receipt by its clerk of the

 3    application, shall by resolution either approve or disapprove the

 4    application for an industrial facilities exemption certificate in

 5    accordance with section 9 and the other provisions of this act.


   05612'98                                                 JLB
           
                                   2

 1    If disapproved, the reasons shall be set forth in writing in the

 2    resolution.  If approved, the clerk shall  forward 
             SEND the

 3    application to the commission within 60 days of approval or

 4    before October 31 of that year, whichever is first, in order to

 5    receive the industrial facilities exemption certificate effective

 6    for the following year.  If disapproved, the clerk shall return

 7    the application to the applicant.  The applicant may appeal the

 8    disapproval to the commission within 10 days after the date of

 9    the disapproval.

10         Sec. 7.  (1) Within 60 days after receipt of an approved

11    application or an appeal of a disapproved application that was

12     submitted  SENT to the commission before October
             31 of that

13    year, the commission shall determine whether the facility is a

14    speculative building or designed and acquired primarily for the

15    purpose of restoration or replacement of obsolete industrial

16    property or the construction of new industrial property, and

17    whether the facility otherwise complies with section 9 and with

18    the other provisions of this act.  If the commission so finds, it

19    shall issue an industrial facilities exemption certificate.

20    Before issuing a certificate the commission shall notify the

21    state treasurer of the application and shall obtain the written

22    concurrence of the  department of consumer and industry
             services 

23    MICHIGAN JOBS COMMISSION that the application complies with the

24    requirements in section 9.  Except as otherwise provided in sec-

25    tion 7a, the effective date of the certificate for a replacement

26    facility or new facility is the immediately succeeding December

27    31 following the date the certificate is issued.  For a



   05612'98

                                   3

 1    speculative building or a portion of a speculative building,

 2    except as otherwise provided in section 7a, the effective date of

 3    the certificate is the immediately succeeding December 31 follow-

 4    ing the date the speculative building, or the portion of a specu-

 5    lative building, is used as a manufacturing facility.

 6         (2) The commission shall send an industrial facilities

 7    exemption certificate, when issued, by certified mail to the

 8    applicant, and a certified copy by certified mail to the assessor

 9    of the assessing unit in which the facility is located or to be

10    located, and that copy shall be filed in his or her office.

11    Notice of the commission's refusal to issue a certificate shall

12    be sent by certified mail to the same persons.

13         (3) Notwithstanding any other provision of this act, if on

14    December 29, 1986 a local governmental unit passed a resolution

15    approving an exemption certificate for 10 years for real and per-

16    sonal property but the commission did not receive the application

17    until 1992 and the application was not made complete until 1995,

18    then the commission shall issue, for that property, an industrial

19    facilities exemption certificate that begins December 30, 1987

20    and ends December 30, 1997.

















   05612'98          Final page.                            JLB