Bill Text: MI HB4555 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Property tax; special assessments; alternative state essential services assessment; modify certain definitions, dates, and filing requirements and provide for other general amendments. Amends secs. 3, 5 & 7 of 2014 PA 93 (MCL 211.1073 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2015-07-14 - Assigned Pa 121'15 With Immediate Effect [HB4555 Detail]
Download: Michigan-2015-HB4555-Engrossed.html
HB-4555, As Passed House, May 20, 2015
SUBSTITUTE FOR
HOUSE BILL NO. 4555
A bill to amend 2014 PA 93, entitled
"Alternative state essential services assessment act,"
by amending sections 3, 5, and 7 (MCL 211.1073, 211.1075, and
211.1077).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Acquisition cost" means the fair market value of personal
property
at the time of acquisition by the current first owner,
including the cost of freight, sales tax, and installation, and
other capitalized costs, except capitalized interest. There is a
rebuttable presumption that the acquisition price paid by the
current
first owner for personal property, and any costs of
freight, sales tax, and installation, and other capitalized costs,
except capitalized interest, reflect the fair market value of the
personal property at the time of acquisition by the first owner.
For personal property exempt under section 9m or 9n of the general
property tax act, 1893 PA 206, MCL 211.9m and 211.9n, that would
otherwise be exempt under section 7k of the general property tax
act, 1893 PA 206, MCL 211.7k, under an industrial facilities
exemption certificate issued under 1974 PA 198, MCL 207.551 to
207.572, and effective before January 1, 2013, and for personal
property subject to an extended industrial facilities exemption
certificate under section 11a of 1974 PA 198, MCL 207.561a, that is
exempt under an industrial facilities exemption certificate issued
under 1974 PA 198, MCL 207.551 to 207.572, and effective before
January 1, 2013, acquisition cost means 1/2 of the fair market
value of that personal property at the time of acquisition by the
current
first owner. The acquisition cost for personal property
exempt under the Michigan renaissance zone act, 1996 PA 376, MCL
125.2681 to 125.2696, is $0.00 except for the 3 years immediately
preceding the expiration of the exemption of that personal property
under the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681
to 125.2696, during which period of time the acquisition cost for
that personal property means the fair market value of that personal
property
at the time of acquisition by the current first owner
multiplied by the percentage reduction in the exemption as provided
in section 9(3) of the Michigan renaissance zone act, 1996 PA 376,
MCL 125.2689. The state tax commission may provide guidelines for
circumstances
in which the actual acquisition price is not
determinative
of fair market value and the basis of determining
fair
market value in those circumstances, including when that
property
is idle, obsolete, or surplus.both
of the following
circumstances:
(i) The actual acquisition cost, the year of acquisition, or
both are unknown.
(ii) The actual acquisition cost is not determinative of fair
market value because the property is idle, has material
obsolescence, or is surplus.
(b) "Assessment" means the alternative state essential
services assessment levied under section 5.
(c) "Assessment year" means the year in which the alternative
state essential services assessment levied under section 5 is due.
(d) "Eligible claimant" means a person that owns, leases, or
is in the possession of eligible personal property.
(e) "Eligible personal property" means personal property
exempt from the tax levied under the state essential services
assessment act, 2014 PA 92, MCL 211.1051 to 211.1061, and
determined to be subject to the alternative state essential
services assessment as provided in section 9 of the state essential
services assessment act, 2014 PA 92, MCL 211.1059.
Sec. 5. (1) Beginning January 1, 2016, the alternative state
essential services assessment is levied on all eligible personal
property as provided in this section.
(2) The assessment under this section is a state tax on the
eligible personal property owned by, leased to, or in the
possession of an eligible claimant on December 31 of the year
immediately preceding the assessment year and shall be calculated
as follows:
(a)
For eligible personal property acquired by the eligible
claimant
first owner in a year 1 to 5 years before the assessment
year, multiply the acquisition cost of the eligible personal
property by 50% of the mills levied under section 5(2)(a) of the
state essential services assessment act, 2014 PA 92, MCL 211.1055.
(b)
For eligible personal property acquired by the eligible
claimant
first owner in a year 6 to 10 years before the assessment
year, multiply the acquisition cost of the eligible personal
property by 50% of the mills levied under section 5(2)(b) of the
state essential services assessment act, 2014 PA 92, MCL 211.1055.
(c)
For eligible personal property acquired by the eligible
claimant
first owner in a year more than 10 years before the
assessment year, multiply the acquisition cost of the eligible
personal property by 50% of the mills levied under section 5(2)(c)
of the state essential services assessment act, 2014 PA 92, MCL
211.1055.
Sec. 7. (1) The department of treasury shall collect and
administer the alternative state essential services assessment as
provided in this section.
(2) Not later than May 1 in each assessment year, the
department of treasury shall make available in electronic form to
each eligible claimant a statement for calculation of the
assessment as provided in section 5.
(3)
Not later than September August
15 in each assessment
year, each eligible claimant shall submit electronically to the
department of treasury the completed statement, in a form and
manner prescribed by the department of treasury, and full payment
of the assessment levied under section 5 for that assessment year
as calculated in section 5(2). The department of treasury may waive
or delay the electronic filing requirement at its discretion. The
department of treasury may accept a timely filed statement using
reporting software approved by the department of treasury, subject
to audit under subsection (6). A statement submitted by an eligible
claimant shall include all of the eligible claimant's eligible
personal property located in this state subject to the assessment
levied
under section 5. and, beginning in 2019, specify the
location
of that property on December 31 of the year immediately
preceding
the assessment year.The
completed statement required
under this subsection shall not be subject to disclosure under the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(4) If an eligible claimant does not submit the statement and
full
payment of the assessment levied under section 5 by September
August 15, the department of treasury shall issue a notice to the
eligible
claimant not later than October September
15. The notice
shall include a statement explaining the consequences of nonpayment
as set forth in subsection (5) and instructing the eligible
claimant of its potential responsibility under subsection (5)(e).
An
eligible claimant shall submit payment in full by November 1
October 15 of the assessment year along with a penalty of 1% per
week on the unpaid balance for each week payment is not made in
full up to a maximum of 5% of the total amount due and unpaid. For
the eligible claimant's first assessment year, the penalty shall be
waived if the eligible claimant submits the statement and full
payment
of the assessment levied under section 5 within 7 business
days
of by September 15. An eligible claimant may amend a filed
statement for the current year up to September 15. Payments made
due to an amended statement are subject to the penalties as
described in this subsection. The department of treasury shall
issue refunds for overpayments due to an amended statement. All
refunds due to overpayment shall be remitted without interest
except as provided by section 37 of the tax tribunal act, 1973 PA
186, MCL 205.737.
(5)
If For any assessment year
in which an eligible claimant
does not submit payment in full and any penalty due under
subsection
(4) or (6) by November 1, October 15, or if the state
tax commission discovers that the property is not eligible under
section 9m or 9n of the general property tax act, 1893 PA 206, MCL
211.9m and 211.9n, all of the following shall apply:
(a)
The state tax commission shall direct the assessor to
rescind
issue an order to rescind no
later than the first Monday in
December for the assessment year any exemption described in section
9m or 9n of the general property tax act, 1893 PA 206, MCL 211.9m
and
211.9n, granted for the eligible personal property.any parcel
for which payment in full and any penalty due have not been
received or for which the state tax commission discovers that the
property is not eligible under section 9m or 9n of the general
property tax act, 1893 PA 206, MCL 211.9m and 211.9n.
(b) The state tax commission shall issue an order to rescind
no later than the first Monday in December for the assessment year
any exemption under section 9f of the general property tax act,
1893 PA 206, MCL 211.9f, which exemption was approved under section
9f of the general property tax act, 1893 PA 206, MCL 211.9f, after
2013 for any parcel for which payment in full and any penalty due
have not been received or for which the state tax commission
discovers that the property is not eligible under section 9m or 9n
of the general property tax act, 1893 PA 206, MCL 211.9m and
211.9n.
(c) The state tax commission shall issue an order to rescind
no later than the first Monday in December for the assessment year
any exemption for eligible personal property subject to an extended
industrial facilities exemption certificate under section 11a of
1974 PA 198, MCL 207.561a, for any parcel for which payment in full
and any penalty due have not been received or for which the state
tax commission discovers that the property is not eligible under
section 9m or 9n of the general property tax act, 1893 PA 206, MCL
211.9m and 211.9n.
(d) The state tax commission shall issue an order to rescind
no later than the first Monday in December for the assessment year
any extended exemption for eligible personal property under section
9f(8)(a) of the general property tax act, 1893 PA 206, MCL 211.9f,
for any parcel for which payment in full and any penalty due have
not been received or for which the state tax commission discovers
that the property is not eligible under section 9m or 9n of the
general property tax act, 1893 PA 206, MCL 211.9m and 211.9n.
(e)
The eligible claimant shall file not later than November
10
with the assessor of the
township or city within 30 days of the
date of the state tax commission order to rescind issued under
subdivisions (a) to (d) a statement under section 19 of the general
property tax act, 1893 PA 206, MCL 211.19, for all property for
which the exemption has been rescinded under this section.
(f)
All taxes due as a result of a rescission by the
department
of treasury or Within 60 days
of an order of rescission
by the state tax commission under subdivisions (a) to (d), the
treasurer of the local tax collecting unit shall issue amended tax
bills for any taxes, including penalty and interest, that were not
billed under the general property tax act, 1893 PA 206, MCL 211.1
to
211.155, or under 1974 PA 198, MCL 207.551 to 207.572, on the
summer
bill shall be billed under the general property tax act,
1893
PA 206, MCL 211.1 to 211.155, or under 1974 PA 198, MCL
207.551
to 207.572, on the winter tax bill.and
that are owed as a
result of the order of rescission.
(6) (g)
A person who files a statement under section 7 An
eligible claimant shall provide access to the books and records,
for audit purposes, relating to the location and description; the
date of purchase, lease, or acquisition; and the purchase price,
lease
amount, or value of all industrial personal property and
commercial
personal property owned by, leased
by, or in the
possession of that person or a related entity if requested by the
assessor
of the local tax collecting unit, township or city, county
equalization department, or department of treasury for the year in
which the statement is filed and the immediately preceding 3 years.
The department of treasury shall develop and implement an audit
program which includes, but is not limited to, the audit of
statements submitted under subsection (3) and amended statements
submitted under subsection (4) for the current calendar year and
the 3 calendar years immediately preceding the commencement of an
audit. An assessment as a result of an audit shall be paid in full
within 35 days of issuance and shall include penalties and interest
as described in section 154(3) of the general property tax act,
1893 PA 206, MCL 211.154. Refunds as a result of an audit under
this subsection shall be without interest. The exemption for
personal property for which an assessment has been issued as a
result of an audit under this subsection shall be subject to the
rescission provisions of subsection (5) for the years of the
assessment if full payment is not timely made as required by this
subsection.
(7) (6)
An eligible claimant may appeal an
assessment levied
under section 5 or a penalty or rescission under this section to
the state tax commission by filing a petition not later than
December 31 in that tax year. An eligible claimant may appeal an
assessment issued, including penalties, interest, or rescission, as
a result of an audit conducted under subsection (6) by filing a
petition with the state tax commission within 30 days of the date
of that assessment's issuance.
The department of treasury may appeal to the state tax commission
by filing a petition for the current calendar year and 3
immediately preceding calendar years. The state tax commission
shall decide any appeal based on the written petition and the
written recommendation of state tax commission staff and any other
relevant information. The department of treasury or any eligible
claimant
may appeal the decision determination
of the state tax
commission to the Michigan tax tribunal within 35 days of the date
of the determination.
