HB-4540, As Passed House, May 15, 2013

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4540

 

 

 

 

 

 

 

 

 

 

 

 

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

 

as amended by 1996 PA 323 and section 7 as amended by 2008 PA 457.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6. The legislative body of the local governmental unit,

 

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

 

application, shall by resolution either approve or disapprove the

 


application for an industrial facilities exemption certificate in

 

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

 

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

 

resolution. If approved, the clerk shall forward the application to

 

the commission within 60 days of approval or before October 31 of

 

that year, whichever is first, or as otherwise provided in section

 

7 in order to receive the industrial facilities exemption

 

certificate effective for the following year. If disapproved, the

 

clerk shall return the application to the applicant. The applicant

 

may appeal the disapproval to the commission within 10 days after

 

the date of the disapproval.

 

     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 energy,

 

labor, and economic growth that the application complies with the

 

requirements in section 9. Except as otherwise provided in this

 

section and 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 mail to the applicant, and a

 

certified copy by 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 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.

 

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

 

July 23, 2012, a local governmental unit passed a resolution

 

approving an industrial facilities exemption certificate for a new

 

facility, but the application was not made complete until 2013, the

 

commission shall issue for that property an industrial facilities

 

exemption certificate that begins on December 30, 2012 and ends

 

December 30, 2024.

 

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

 

February 21, 2012, a local governmental unit passed a resolution

 

approving an industrial facilities exemption certificate for a new

 

facility, but the application was not made complete until 2013, the

 

commission shall issue for that property an industrial facilities

 

exemption certificate that begins on December 30, 2012.

 

     (8) If the commission receives an application under this act

 

for an industrial facilities exemption certificate for a new

 


facility or a replacement facility, but the application is not made

 

complete until after December 31 of the year in which the

 

application is received by the commission, the commission may issue

 

for that property an industrial facilities exemption certificate

 

that has an effective date of December 30 of the immediately

 

preceding year.

 

     (9) If an error or mistake in an application for an industrial

 

facilities exemption certificate is discovered after the local

 

governmental unit has passed a resolution approving the application

 

or after the commission has issued a certificate for the

 

application, an applicant may submit an amended application in the

 

same manner as an original application under this act that corrects

 

the error or mistake. The legislative body of the local

 

governmental unit and the commission may approve or deny the

 

amended application. If the commission previously issued a

 

certificate for the original application and approves an amended

 

application under this subsection, the commission shall issue an

 

amended certificate for the amended application with the same

 

effective date as the original certificate.

 

     (10) Beginning October 1, 2013, the commission shall do all of

 

the following for each industrial facilities exemption certificate

 

approved or disapproved by the commission under subsection (8) or

 

(9):

 

     (a) Notify the office of the member of the house of

 

representatives of this state and the office of the senator of this

 

state, who represent the geographic area in which the property

 

covered by the application for a certificate is located, that an

 


application for a certificate has been approved or disapproved

 

under subsection (8) or (9).

 

     (b) Publish on its website a copy of the application for a

 

certificate and a statement indicating whether the application for

 

a certificate was approved or disapproved under subsection (8) or

 

(9) and whatever additional information the commission considers

 

appropriate regarding the application.