SB-1281, As Passed Senate, November 13, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1281

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending section 9f (MCL 211.9f), as amended by 2008 PA 285.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 9f. (1) The governing body of an eligible local assessing

district may adopt a resolution to exempt from the collection of

taxes under this act all new personal property owned or leased by

an eligible business located in 1 or more eligible districts or

distressed parcels designated in the resolution. The clerk of the

eligible local assessing district shall notify in writing the

assessor of the local tax collecting unit in which the eligible

district or distressed parcel is located and the legislative body

of each taxing unit that levies ad valorem property taxes in the

eligible local assessing district in which the eligible district or

distressed parcel is located. Before acting on the resolution, the

governing body of the eligible local assessing district shall

afford the assessor and a representative of the affected taxing

units an opportunity for a hearing.

(2) The exemption under this section is effective on the

December 31 immediately succeeding the adoption of the resolution

by the governing body of the eligible local assessing district and

shall continue in effect for a period specified in the resolution.

A copy of the resolution shall be filed with the state tax

commission, the state treasurer, and the president of the Michigan

strategic fund. A resolution is not effective unless approved by

~~the state tax commission~~ as provided in subsection (3).

(3) Not more than 60 days after receipt of a copy of the

resolution adopted under subsection (1), the state tax commission

shall ~~approve or disapprove the resolution. The~~ determine if the

new personal property subject to the exemption is owned or leased

by an eligible business and if the eligible business is located in

1 or more eligible districts. If the state tax commission

determines that the new personal property subject to the exemption

is owned or leased by an eligible business and that the eligible

business is located in 1 or more eligible districts, the state

treasurer, with the written concurrence of the president of the

Michigan strategic fund, shall ~~advise the state tax commission as~~

~~to whether~~ approve the resolution adopted under subsection (1) if

the state treasurer and the president of the Michigan strategic

fund determine that exempting new personal property of the eligible

business is necessary to reduce unemployment, promote economic

growth, and increase capital investment in this state.

(4) Subject to subsection (5), if an existing eligible

business sells or leases new personal property exempt under this

section to an acquiring eligible business, the exemption granted to

the existing eligible business shall continue in effect for the

period specified in the resolution adopted under subsection (1) for

the new personal property purchased or leased from the existing

eligible business by the acquiring eligible business and for any

new personal property purchased or leased by the acquiring eligible

business.

(5) After December 31, 2007, an exemption for an existing

eligible business shall continue in effect for an acquiring

eligible business under subsection (4) only if the continuation of

the exemption is approved in a resolution adopted by the governing

body of an eligible local assessing district.

(6) Notwithstanding the amendatory act that added section

2(1)(c), all of the following shall apply to an exemption under

this section that was approved by the state tax commission on or

before April 30, 1999, regardless of the effective date of the

exemption:

(a) The exemption shall be continued for the term authorized

by the resolution adopted by the governing body of the eligible

local assessing district and approved by the state tax commission

with respect to buildings and improvements constructed on leased

real property during the term of the exemption if the value of the

real property is not assessed to the owner of the buildings and

improvements.

(b) The exemption shall not be impaired or restricted with

respect to buildings and improvements constructed on leased real

property during the term of the exemption if the value of the real

property is not assessed to the owner of the buildings and

improvements.

(7) As used in this section:

(a) "Acquiring eligible business" means an eligible business

that purchases or leases assets of an existing eligible business,

including the purchase or lease of new personal property exempt

under this section, and that will conduct business operations

similar to those of the existing eligible business at the location

of the existing eligible business within the eligible district.

(b) "Authorized business" means that term as defined in

section 3 of the Michigan economic growth authority act, 1995 PA

24, MCL 207.803.

located in a city or village that meets all of the following

conditions:

(i) Is located in a qualified downtown revitalization district.

As used in this subparagraph, "qualified downtown revitalization

district" means an area located within 1 or more of the following:

(A) The boundaries of a downtown district as defined in

section 1 of 1975 PA 197, MCL 125.1651.

(B) The boundaries of a principal shopping district or a

business improvement district as defined in section 1 of 1961 PA

120, MCL 125.981.

that is zoned and primarily used for business as determined by the

local governmental unit.

(ii) Meets 1 of the following conditions:

(A) Has a blighted or functionally obsolete building located

on the parcel. As used in this sub-subparagraph, "blighted" and

"functionally obsolete" mean those terms as defined in section 2 of

the brownfield redevelopment financing act, 1996 PA 381, MCL

125.2652.

(B) Is a vacant parcel that had been previously occupied.

(iii) Is zoned to allow for mixed use.

(d) "Eligible business" means, effective August 7, 1998, a

business engaged primarily in manufacturing, mining, research and

development, wholesale trade, office operations, or the operation

of a facility for which the business that owns or operates the

facility is an eligible taxpayer. Eligible business does not

include a casino, retail establishment, professional sports

stadium, or that portion of an eligible business used exclusively

for retail sales. As used in this subdivision, "casino" means a

casino regulated by this state pursuant to the Michigan gaming

control and revenue act, 1996 IL 1, MCL 432.201 to 432.226, and all

property associated or affiliated with the operation of a casino,

including, but not limited to, a parking lot, hotel, motel, or

retail store.

(e) "Eligible district" means 1 or more of the following:

(i) An industrial development district as that term is defined

in 1974 PA 198, MCL 207.551 to 207.572.

(ii) A renaissance zone as that term is defined in the Michigan

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

(iii) An enterprise zone as that term is defined in the

enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123.

(iv) A brownfield redevelopment zone as that term is designated

under the brownfield redevelopment financing act, 1996 PA 381, MCL

125.2651 to 125.2672.

(v) An empowerment zone designated under subchapter U of

chapter 1 of the internal revenue code of 1986, 26 USC 1391 to

1397F.

(vi) An authority district or a development area as those terms

are defined in the tax increment finance authority act, 1980 PA

450, MCL 125.1801 to 125.1830.

(vii) An authority district as that term is defined in the

local development financing act, 1986 PA 281, MCL 125.2151 to

125.2174.

(viii) A downtown district or a development area as those terms

are defined in 1975 PA 197, MCL 125.1651 to 125.1681.

(ix) An area that contains an eligible taxpayer.

(f) "Eligible distressed area" means 1 of the following:

(i) That term as defined in section 11 of the state housing

development authority act of 1966, 1966 PA 346, MCL 125.1411.

(ii) An area that contains an eligible taxpayer.

(g) "Eligible local assessing district" means a 1 or more of

the following:

(i) A city, village, or township that contains an eligible

distressed area.

(ii) A city, village, or township that is located in a county,

all or a portion of which borders another state or Canada.

(h) "Eligible taxpayer" means a taxpayer that meets both of

the following conditions:

(i) Is an authorized business.

(ii) Is eligible for tax credits described in section 9 of the

Michigan economic growth authority act, 1995 PA 24, MCL 207.809.

(i) "Existing eligible business" means an eligible business

identified in a resolution adopted under subsection (1) for which

an exemption has been granted under this section.

(j) "New personal property" means personal property that was

not previously subject to tax under this act or was not previously

placed in service in this state and that is placed in an eligible

district after a resolution under subsection (1) is approved by the

eligible local assessing district. As used in this subdivision, for

exemptions approved by the state ~~tax commission~~ treasurer under

subsection (3) after April 30, 1999, new personal property does not

include buildings described in section 14(6) and personal property

described in section 8(h), (i), and (j).