August 29, 2007, Introduced by Rep. Espinoza and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 9f (MCL 211.9f), as amended by 2004 PA 79.
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
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 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 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. 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 state treasurer,
with the written concurrence of the president of the Michigan
strategic fund, shall advise the state tax commission as to whether
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) (4)
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) (5)
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) (a)
"Eligible business" means, effective August 7, 1998, a
business engaged primarily in manufacturing, mining, research and
development, wholesale trade, or office operations. 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, the
Initiated
Law of 1996 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.
(c) (b)
"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.
(d) (c)
"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 business as described in
section 8(5)(b)(ii) of the Michigan economic growth authority act,
1995 PA 24, MCL 207.808.
(e) (d)
"Eligible local assessing district" means a city,
village, or township that contains an eligible distressed area.
(f) "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.
(g) (e)
"New personal property" means personal property that
was not previously subject to tax under this act 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
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).