SB-1111, As Passed House, December 14, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1111

     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

governmental units; to provide for the exemption from certain

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

certain facilities; to impose and provide for the disposition of an

administrative fee; 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 officers of local governmental units; and to provide

penalties,"

by amending section 7 (MCL 207.557), as amended by 2005 PA 267.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

application or an appeal of a disapproved application that was

submitted to the commission before October 31 of that year, the

commission shall determine whether the facility is a speculative

building or designed and acquired primarily for the purpose of

restoration or replacement of obsolete industrial property or the

construction of new industrial property, and whether the facility

otherwise complies with section 9 and with the other provisions of

this act. If the commission so finds, it shall issue an industrial

facilities exemption certificate. Before issuing a certificate the

commission shall notify the state treasurer of the application and

shall obtain the written concurrence of the department of labor and

economic growth that the application complies with the requirements

in section 9. Except as otherwise provided in section 7a, the

effective date of the certificate for a replacement facility or new

facility is the immediately succeeding December 31 following the

date the certificate is issued. For a speculative building or a

portion of a speculative building, except as otherwise provided in

section 7a, the effective date of the certificate is the

immediately succeeding December 31 following the date the

speculative building, or the portion of a speculative building, is

used as a manufacturing facility.

     (2) The commission shall send an industrial facilities

exemption certificate, when issued, by certified mail to the

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

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

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

of the commission's refusal to issue a certificate shall be sent by

certified mail to the same persons.

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

December 29, 1986 a local governmental unit passed a resolution

approving an exemption certificate for 10 years for real and

personal property but the commission did not receive the

application until 1992 and the application was not made complete

until 1995, then the commission shall issue, for that property, an

industrial facilities exemption certificate that begins December

30, 1987 and ends December 30, 1997.

     (4) Notwithstanding any other provision of this act, if

pursuant to section 16a a local governmental unit passed a

resolution approving an industrial facilities exemption certificate

for a new facility on October 14, 2003 for a certificate that

expired in December 2002, the commission shall issue for that

property an industrial facilities exemption certificate that begins

on December 30, 2002 and ends December 30, 2009.

     (5) Notwithstanding any other provision of this act, if on or

before February 10, 2007 a local governmental unit passed a

resolution approving an amendment of an industrial facilities

exemption certificate for a replacement facility and that

certificate was revoked by the commission effective December 30,

2005 with the order of revocation issued by the commission on April

10, 2006, notwithstanding the revocation, the commission shall

retroactively amend the certificate and give full effect to the

amended certificate, which shall include the additional personal

property expenditures described in the resolution amending the

certificate, for the period of time beginning when the certificate

was originally approved until the certificate was revoked.