Bill Text: MI SB0501 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Economic development; plant rehabilitation; definition of facility to include certain existing facilities; modify. Amends secs. 11, 14, 15, 16 & 16a of 1974 PA 198 (MCL 207.561 et seq.).
Spectrum: Moderate Partisan Bill (Republican 7-2)
Status: (Engrossed - Dead) 2009-11-05 - Referred To Committee On Commerce [SB0501 Detail]
Download: Michigan-2009-SB0501-Engrossed.html
SB-0501, As Passed Senate, November 5, 2009
SENATE BILL No. 501
April 30, 2009, Introduced by Senators KAHN, STAMAS, VAN WOERKOM, RICHARDVILLE, ALLEN, SWITALSKI, BARCIA, GILBERT and SANBORN and referred to the Committee on Economic Development and Regulatory Reform.
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 11, 14, 15, 16, and 16a (MCL 207.561, 207.564,
207.565, 207.566, and 207.566a), section 11 as amended by 2007 PA
195, section 14 as amended by 2008 PA 457, section 15 as amended by
2008 PA 170, section 16 as amended by 1982 PA 417, and section 16a
as amended by 2008 PA 306.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) Except as provided in subsections (6) and (7),
there is levied upon every owner of a speculative building, a new
facility, an existing facility, or a replacement facility to which
an industrial facilities exemption certificate is issued a specific
tax to be known as the industrial facility tax and an
administrative fee calculated in the same manner and at the same
rate that the local tax collecting unit imposes on ad valorem taxes
collected under the general property tax act, 1893 PA 206, MCL
211.1 to 211.155.
(2) The industrial facility tax and administrative fee are to
be paid annually, at the same times, in the same installments, and
to the same officer or officers as taxes and administrative fees,
if any, imposed under the general property tax act, 1893 PA 206,
MCL 211.1 to 211.155, are payable. Except as otherwise provided in
this section, the officer or officers shall disburse the industrial
facility tax payments received each year to and among the state,
cities, townships, villages, school districts, counties, and
authorities, at the same times and in the same proportions as
required by law for the disbursement of taxes collected under the
general property tax act, 1893 PA 206, MCL 211.1 to 211.155. To
determine the proportion for the disbursement of taxes under this
subsection and for attribution of taxes under subsection (5) for
taxes collected under industrial facilities exemption certificates
issued before January 1, 1994, the number of mills levied for local
school district operating purposes to be used in the calculation
shall equal the number of mills for local school district operating
purposes levied in 1993 minus the number of mills levied under the
state education tax act, 1993 PA 331, MCL 211.901 to 211.906, for
the year for which the disbursement is calculated.
(3) Except as provided by subsections (4) and (5), for an
intermediate school district receiving state aid under section 56,
62, or 81 of the state school aid act of 1979, 1979 PA 94, MCL
388.1656, 388.1662, and 388.1681, of the amount that would
otherwise be disbursed to or retained by the intermediate school
district, all or a portion, to be determined on the basis of the
tax rates being utilized to compute the amount of the state school
aid, shall be paid instead to the state treasury to the credit of
the state school aid fund established by section 11 of article IX
of the state constitution of 1963. If the sum of any commercial
facilities taxes prescribed by the commercial redevelopment act,
1978 PA 255, MCL 207.651 to 207.668, and the industrial facility
taxes paid to the state treasury to the credit of the state school
aid fund that would otherwise be disbursed to the local or
intermediate school district, under section 12 of the commercial
redevelopment act, 1978 PA 255, MCL 207.662, and this section,
exceeds the amount received by the local or intermediate school
district under sections 56, 62, and 81 of the state school aid act
of 1979, 1979 PA 94, MCL 388.1656, 388.1662, and 388.1681, the
department of treasury shall allocate to each eligible local or
intermediate school district an amount equal to the difference
between the sum of the commercial facilities taxes and the
industrial facility taxes paid to the state treasury to the credit
of the state school aid fund and the amount the local or
intermediate school district received under sections 56, 62, and 81
of the state school aid act of 1979, 1979 PA 94, MCL 388.1656,
388.1662, and 388.1681. This subsection does not apply to taxes
levied for either of the following:
(a) Mills allocated to an intermediate school district for
operating purposes as provided for under the property tax
limitation act, 1933 PA 62, MCL 211.201 to 211.217a.
(b) An intermediate school district that is not receiving
state aid under section 56 or 62 of the state school aid act of
1979, 1979 PA 94, MCL 388.1656 and 388.1662.
(4) For industrial facilities taxes levied before 1994, a
local or intermediate school district shall receive or retain its
industrial facility tax payment that is levied in any year and
becomes a lien before December 1 of the year if the district files
a statement with the state treasurer not later than June 30 of the
year certifying that the district does not expect to receive state
school aid payments under section 56, 62, or 81 of the state school
aid act of 1979, 1979 PA 94, MCL 388.1656, 388.1662, and 388.1681,
in the state fiscal year commencing in the year this statement is
filed and if the district did not receive state school aid payments
under section 56, 62, or 81 of the state school aid act of 1979,
1979 PA 94, MCL 388.1656, 388.1662, and 388.1681, for the state
fiscal year concluding in the year the statement required by this
subsection is filed. However, if a local or intermediate school
district receives or retains its summer industrial facility tax
payment under this subsection and becomes entitled to receive state
school aid payments under section 56, 62, or 81 of the state school
aid act of 1979, 1979 PA 94, MCL 388.1656, 388.1662, and 388.1681,
in the state fiscal year commencing in the year in which it filed
the statement required by this subsection, the district immediately
shall pay to the state treasury to the credit of the state school
aid fund an amount of the summer industrial facility tax payments
that would have been paid to the state treasury to the credit of
the state school aid fund under subsection (3) had not this
subsection allowed the district to receive or retain the summer
industrial facility tax payment.
(5) For industrial facilities taxes levied after 1993, the
amount to be disbursed to a local school district, except for that
amount of tax attributable to mills levied under section 1211(2) or
1211c of the revised school code, 1976 PA 451, MCL 380.1211 and
380.1211c, and mills that are not included as mills levied for
school operating purposes under section 1211 of the revised school
code, 1976 PA 451, MCL 380.1211, shall be paid to the state
treasury and credited to the state school aid fund established by
section 11 of article IX of the state constitution of 1963.
(6) A speculative building, a new facility, an existing
facility, or a replacement facility located in a renaissance zone
under the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681
to 125.2696, is exempt from the industrial facility tax levied
under this act to the extent and for the duration provided pursuant
to the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to
125.2696, except for that portion of the industrial facility tax
attributable to a special assessment or a tax described in section
7ff(2) of the general property tax act, 1893 PA 206, MCL 211.7ff.
The industrial facility tax calculated under this subsection shall
be disbursed proportionately to the local taxing unit or units that
levied the special assessment or the tax described in section
7ff(2) of the general property tax act, 1893 PA 206, MCL 211.7ff.
(7) Upon application for an exemption under this subsection by
a qualified start-up business, the governing body of a local tax
collecting unit may adopt a resolution to exempt a speculative
building, a new facility, or a replacement facility of a qualified
start-up business from the collection of the industrial facility
tax levied under this act in the same manner and under the same
terms and conditions as provided for the exemption in section 7hh
of the general property tax act, 1893 PA 206, MCL 211.7hh. The
clerk of the local tax collecting unit shall notify in writing the
assessor of the local tax collecting unit and the legislative body
of each taxing unit that levies ad valorem property taxes in the
local tax collecting unit. Before acting on the resolution, the
governing body of the local tax collecting unit shall afford the
assessor and a representative of the affected taxing units an
opportunity for a hearing. If a resolution authorizing the
exemption is adopted in the same manner as provided in section 7hh
of the general property tax act, 1893 PA 206, MCL 211.7hh, a
speculative building, a new facility, or a replacement facility
owned or operated by a qualified start-up business is exempt from
the industrial facility tax levied under this act, except for that
portion of the industrial facility tax attributable to a special
assessment or a tax described in section 7ff(2) of the general
property tax act, 1893 PA 206, MCL 211.7ff, for the year in which
the resolution is adopted. A qualified start-up business is not
eligible for an exemption under this subsection for more than 5
years. A qualified start-up business may receive the exemption
under this subsection in nonconsecutive years. The industrial
facility tax calculated under this subsection shall be disbursed
proportionately to the taxing unit or units that levied the special
assessment or the tax described in section 7ff(2) of the general
property tax act, 1893 PA 206, MCL 211.7ff. As used in this
subsection, "qualified start-up business" means that term as
defined
in section 31a of the single business tax act, former 1975
PA
228, MCL 208.31a, or in section 415 of the Michigan
business tax
act, 2007 PA 36, MCL 208.1415.
Sec. 14. (1) The amount of the industrial facility tax, in
each year for a replacement facility, shall be determined by
multiplying the total mills levied as ad valorem taxes for that
year by all taxing units within which the facility is situated by
the taxable value of the real and personal property of the obsolete
industrial property for the tax year immediately preceding the
effective date of the industrial facilities exemption certificate
after deducting the taxable value of the land and of the inventory
as specified in section 19.
(2) The amount of the industrial facility tax, in each year
for a new facility or a speculative building for which an
industrial facilities exemption certificate became effective before
January 1, 1994, shall be determined by multiplying the taxable
value of the facility excluding the land and the inventory personal
property by the sum of 1/2 of the total mills levied as ad valorem
taxes for that year by all taxing units within which the facility
is located other than mills levied for school operating purposes by
a local school district within which the facility is located or
mills levied under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906, plus 1/2 of the number of mills levied for
local school district operating purposes in 1993.
(3) Except as provided in subsection (4), the amount of the
industrial facility tax in each year for a new facility, an
existing facility, or a speculative building for which an
industrial facilities exemption certificate becomes effective after
December 31, 1993, shall be determined by multiplying the taxable
value of the facility excluding the land and the inventory personal
property by the sum of 1/2 of the total mills levied as ad valorem
taxes for that year by all taxing units within which the facility
is located other than mills levied under the state education tax
act, 1993 PA 331, MCL 211.901 to 211.906, plus, subject to section
14a, the number of mills levied under the state education tax act,
1993 PA 331, MCL 211.901 to 211.906.
(4) For taxes levied after December 31, 2007, for the personal
property tax component of an industrial facilities exemption
certificate for a new facility or a speculative building that is
sited on real property classified as industrial real property under
section 34c of the general property tax act, 1893 PA 206, MCL
211.34c, the amount of the industrial facility tax in each year for
a new facility or a speculative building shall be determined by
multiplying the taxable value of the facility excluding the land
and the inventory personal property by the sum of 1/2 of the total
mills levied as ad valorem taxes for that year by all taxing units
within which the facility is located other than mills levied under
the state education tax act, 1993 PA 331, MCL 211.901 to 211.906,
and the number of mills from which the property is exempt under
section 1211(1) of the revised school code, 1976 PA 451, MCL
380.1211. For taxes levied after December 31, 2007, for the
personal property tax component of an industrial facilities
exemption certificate for a new facility or a speculative building
that is sited on real property classified as commercial real
property under section 34c of the general property tax act, 1893 PA
206, MCL 211.34c, the amount of the industrial facility tax in each
year for a new facility or a speculative building shall be
determined by multiplying the taxable value of the facility
excluding the land and the inventory personal property by the sum
of 1/2 of the total mills levied as ad valorem taxes for that year
by all taxing units within which the facility is located other than
the number of mills from which the property is exempt under section
1211(1) of the revised school code, 1976 PA 451, MCL 380.1211.
(5) For a termination or revocation of only the real property
component, or only the personal property component, of an
industrial facilities exemption certificate as provided in this
act, the valuation and the tax determined using that valuation
shall be reduced proportionately to reflect the exclusion of the
component with respect to which the termination or revocation has
occurred.
Sec. 15. (1) Upon receipt of a request by certified mail to
the commission by the holder of an industrial facilities exemption
certificate requesting revocation of the certificate, the
commission shall by order revoke the certificate in whole or revoke
the certificate with respect to its real property component, or its
personal property component, whichever is requested.
(2) The legislative body of a local governmental unit may by
resolution request the commission to revoke the industrial
facilities exemption certificate of a facility upon the grounds
that, except as provided in section 7a, completion of the
replacement facility or new facility has not occurred within 2
years after the effective date of the certificate, unless a greater
time has been authorized by the commission for good cause; that the
replacement, restoration, or construction of the facility has not
occurred within 6 years after the date the initial industrial
facilities exemption certificate was issued as provided in section
7a, unless a greater time has been authorized by the commission for
good cause; that completion of the speculative building has not
occurred within 2 years after the date the certificate was issued
except as provided in section 7a, unless a greater time has been
authorized by the commission for good cause; that a speculative
building for which a certificate has been issued but is not yet
effective has been used as other than a manufacturing facility;
that the certificate issued for a speculative building has not
become effective within 2 years after the December 31 following the
date the certificate was issued; or that the purposes for which the
certificate was issued are not being fulfilled as a result of a
failure of the holder to proceed in good faith with the
replacement, restoration, or construction and operation of the
replacement facility or new facility, or with the operation of an
existing facility, or with the use of the speculative building as a
manufacturing facility in a manner consistent with the purposes of
this act and in the absence of circumstances that are beyond the
control of the holder.
(3) Upon receipt of the resolution, the commission shall give
notice in writing by certified mail to the holder of the
certificate, to the local legislative body, to the assessor of the
assessing unit, and to the legislative body of each local taxing
unit which levies taxes upon property in the local governmental
unit in which the facility is located. The commission shall afford
to the holder of the certificate, the local legislative body, the
assessor, and a representative of the legislative body of each
taxing unit an opportunity for a hearing. The commission shall by
order revoke the certificate if the commission finds that
completion except as provided in section 7a of the replacement
facility or new facility has not occurred within 2 years after the
effective date of the certificate or a greater time as authorized
by the commission for good cause; that completion of the
speculative building has not occurred within 2 years after the date
the certificate was issued except as provided in section 7a, unless
a greater time has been authorized by the commission for good
cause; that a speculative building for which a certificate has been
issued but is not yet effective has been used as other than a
manufacturing facility; that the certificate issued for a
speculative building has not become effective within 2 years after
the December 31 following the date the certificate was issued; or
that the holder of the certificate has not proceeded in good faith
with the replacement, restoration, or construction and operation of
the facility or with the use of the speculative building as a
manufacturing facility in good faith in a manner consistent with
the purposes of this act and in the absence of circumstances that
are beyond the control of the holder.
(4) The order of the commission revoking the certificate shall
be effective on the December 31 next following the date of the
order and the commission shall send by certified mail copies of its
order of revocation to the holder of the certificate, to the local
legislative body, to the assessor of the assessing unit in which
the facility is located, and to the legislative body of each taxing
unit which levies taxes upon property in the local governmental
unit in which the facility is located.
(5) A revocation of a certificate issued for a speculative
building shall specify and apply only to that portion of the
speculative building for which the grounds for revocation relate.
(6) Notwithstanding any other provision of this act, upon the
written request of the holder of a revoked industrial facilities
exemption certificate to the local unit of government and the
commission and the submission to the commission of a resolution of
concurrence by the legislative body of the local unit of government
in which the facility is located, and if the facility continues to
qualify under this act, the commission may reinstate a revoked
industrial facilities exemption certificate.
Sec. 16. (1) Unless earlier revoked as provided in section 15,
an industrial facilities exemption certificate shall remain in
force and effect for a period to be determined by the legislative
body of the local governmental unit and commencing with its
effective date and ending on the December 31 next following not
more than 12 years after the completion of the facility with
respect to both the real property component and the personal
property component of the facility or, for an existing facility,
not more than 12 years after the issuance of the certificate for
the existing facility. The date of issuance of a certificate of
occupancy, if one is required, by appropriate municipal authority
shall be the date of completion of the facility.
(2) In the case of an application which was not filed within
12 months after the commencement of the restoration, replacement,
or construction of the facility but was filed within the succeeding
12-month period as provided in section 9(2)(a), the industrial
facilities exemption certificate, unless earlier revoked as
provided in section 15, shall remain in force and effect for a
period commencing with its effective date and ending on the
December 31 next following not more than 11 years after completion
of the facility with respect to both the real property component
and the personal property component of the facility. The date of
issuance of a certificate of occupancy, if one is required, by
appropriate municipal authority shall be the date of completion of
the facility. This subsection shall not apply for certificates
issued after December 31, 1983.
(3) In the case of an application filed pursuant to section
9(4), an industrial facilities exemption certificate, unless
earlier revoked as provided in section 15, shall remain in force
and effect for a period to be determined by the legislative body of
the local governmental unit and commencing on the effective date of
the certificate and ending on the December 31 next following not
more than 11 years after the effective date of the certificate.
Sec. 16a. If an industrial facilities exemption certificate
for a replacement facility, a new facility, an existing facility,
or a speculative building becomes effective after December 31,
1995, for a period shorter than the maximum period permitted under
section 16, then both of the following apply:
(a) The owner or lessee of the replacement facility, new
facility, existing facility, or speculative building may, within
the final year in which the certificate is effective, within 12
months after the certificate expires, or, as permitted by the local
governmental unit, at any other time in which the certificate is in
effect apply for another certificate under this act. If the
legislative body of a local governmental unit disapproves an
application submitted under this subdivision, then the applicant
has no right of appeal of that decision as described in section 6.
(b) The legislative body of a local governmental unit shall
not approve applications for certificates the sum of whose periods
exceeds the maximum permitted under section 16 for the user or
lessee of a replacement facility, new facility, existing facility,
or speculative building.
