Bill Text: MI HB6235 | 2009-2010 | 95th Legislature | Chaptered
Bill Title: Michigan business tax; credit; motorsport entertainment complexes; extend sunset and require additional investments. Amends sec. 409 of 2007 PA 36 (MCL 208.1409).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-06-30 - Assigned Pa 103'10 With Immediate Effect [HB6235 Detail]
Download: Michigan-2009-HB6235-Chaptered.html
Act No. 103
Public Acts of 2010
Approved by the Governor
June 29, 2010
Filed with the Secretary of State
June 29, 2010
EFFECTIVE DATE: June 29, 2010
STATE OF MICHIGAN
95TH LEGISLATURE
REGULAR SESSION OF 2010
Introduced by Rep. LeBlanc
ENROLLED HOUSE BILL No. 6235
AN ACT to amend 2007 PA 36, entitled “An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, reporting, payment, and enforcement of taxes on certain commercial, business, and financial activities; to prescribe the powers and duties of public officers and state departments; to provide for the inspection of certain taxpayer records; to provide for interest and penalties; to provide exemptions, credits, and refunds; to provide for the disposition of funds; to provide for the interrelation of this act with other acts; and to make appropriations,” by amending section 409 (MCL 208.1409), as amended by 2008 PA 572.
The People of the State of Michigan enact:
Sec. 409. (1) For tax years that begin on or after January 1, 2008 and end before January 1, 2013, an eligible taxpayer may claim a credit against the tax imposed by this act equal to the amount of capital expenditures in this state on infield renovation, grandstand and infrastructure upgrades, and any other construction and upgrades, subject to the following:
(a) For the 2008 through 2010 tax years, the credit shall not exceed $2,100,000.00 or the taxpayer’s tax liability under this act, whichever is less.
(b) For the 2011 through the 2012 tax years, the credit shall not exceed $1,580,000.00 or the taxpayer’s tax liability under this act, whichever is less.
(2) Subject to the limitation provided under this subsection, for tax years that begin on or after December 1, 2012 and end before January 1, 2017, an eligible taxpayer may claim a credit against the tax imposed by this act equal to the amount of capital expenditures in this state on infield renovation, grandstand and infrastructure upgrades, and any other construction and upgrades. The credit allowed under this subsection shall not exceed $1,580,000.00 or the taxpayer’s tax liability under this act before the calculation of the credit allowed under subsection (3), whichever is less.
(3) In addition to the credit allowed under subsection (1), for the 2009 tax year an eligible taxpayer may claim a credit against the tax imposed by this act equal to 50% of the amount of necessary expenditures in this state incurred including any professional fees, additional police officers, and any traffic management devices, to ensure traffic and pedestrian safety while hosting the requisite motorsports events each calendar year. For the 2010 tax year and each tax year after 2010, an eligible taxpayer may claim a credit against the tax imposed by this act equal to all of the necessary expenditures in this state incurred including any professional fees, additional police officers, and any traffic management devices, to ensure traffic and pedestrian safety while hosting the requisite motorsports events each calendar year. If the amount of the credit allowed under this subsection exceeds the tax liability of the taxpayer for the tax year that excess shall be refunded.
(4) To be eligible to claim the credit allowed under subsection (1), an eligible taxpayer shall expend at least $30,000,000.00 on capital expenditures before January 1, 2011. To be eligible to claim the credit allowed under subsection (2), an eligible taxpayer shall, in addition to the expenditures required to claim the credit under subsection (1), expend, at a minimum, an additional $32,000,000.00 on capital expenditures as follows:
(a) At least $10,000,000.00 after December 31, 2010 and before January 1, 2013.
(b) Including the amount expended under subdivision (a), a cumulative total of at least $32,000,000.00 after December 31, 2010 and before January 1, 2016.
(5) As used in this section:
(a) “Eligible taxpayer” means any of the following:
(i) A person who owns and operates a motorsports entertainment complex and has at least 2 days of motorsports events each calendar year which shall be comparable to NASCAR Nextel cup events held in 2007 or their successor events.
(ii) A person who is the lessee and operator of a motorsports entertainment complex or the lessee of the land on which a motorsports entertainment complex is located and operates that motorsports entertainment complex.
(iii) A person who operates and maintains a motorsports entertainment complex under an operation and management agreement.
(b) “Motorsports entertainment complex” means a closed-course motorsports facility, and its ancillary grounds and facilities, that satisfies all of the following:
(i) Has at least 70,000 fixed seats for race patrons.
(ii) Has at least 6 scheduled days of motorsports events each calendar year.
(iii) Serves food and beverages at the motorsports entertainment complex during motorsports events each calendar year through concession outlets, which are staffed by individuals who represent or are members of 1 or more nonprofit civic or charitable organizations that directly benefit from the concession outlets’ sales.
(iv) Engages in tourism promotion.
(v) Has permanent exhibitions of motorsports history, events, or vehicles within the motorsports entertainment complex.
(c) “Motorsports event” means a motorsports race and its ancillary activities that have been sanctioned by a sanctioning body.
(d) “Sanctioning body” means the American motorcycle association (AMA); auto racing club of America (ARCA); championship auto racing teams (CART); grand American road racing association (GRAND AM); Indy racing league (IRL); national association for stock car auto racing (NASCAR); national hot rod association (NHRA); professional sports car racing (PSR); sports car club of America (SCCA); United States auto club (USAC); Michigan state promoters association; or any successor organization or any other nationally or internationally recognized governing body of motorsports that establishes an annual schedule of motorsports events and grants rights to conduct the events, that has established and administers rules and regulations governing all participants involved in the events and all persons conducting the events, and that requires certain liability assurances, including insurance.
This act is ordered to take immediate effect.
Clerk of the House of Representatives
Secretary of the Senate
Approved
Governor
