Bill Text: MI SB0618 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Property tax; exemptions; property exemption for data centers; provide for. Amends secs. 19 & 22 of 1893 PA 206 (MCL 211.19 & 211.22) & adds sec. 9p.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Engrossed - Dead) 2016-01-14 - Re-referred To Committee On Tax Policy [SB0618 Detail]
Download: Michigan-2015-SB0618-Engrossed.html
SB-0618, As Passed Senate, December 3, 2015
SUBSTITUTE FOR
SENATE BILL NO. 618
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding section 9p.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9p. (1) Subject to subsection (2), beginning December 31,
2015 through December 31, 2025, eligible Internet data center
property is exempt from the collection of taxes under this act.
This exemption may be claimed only by a person, including, but not
limited to, a colocated business, that owns the eligible Internet
data center property and that owns, leases, or otherwise occupies
all or part of the Internet data center in which the eligible
Internet data center property is located.
(2) The exemption described in subsection (1) applies only if
either of the following occurs:
(a) For an Internet data center in which the eligible Internet
data center property is located that was in operation before
January 1, 2016, the governing bodies of the local tax collecting
unit and the county in which the Internet data center is located
fail to adopt resolutions rejecting the exemption described in
subsection (1) before April 1, 2016.
(b) For an Internet data center in which the eligible Internet
data center property is located that begins operation after
December 31, 2015, the governing bodies of the local tax collecting
unit and the county in which the Internet data center is located
adopt resolutions approving a request for the exemption described
in subsection (1) by not later than March 31 of the first year that
the eligible Internet data center property would be made subject to
the collection of taxes under this act absent those resolutions.
(3) As used in this section:
(a) "Colocated business" means a person that enters into a
contract with the owner or operator of an Internet data center to
physically use or occupy all or part of the Internet data center
for a period of 1 or more years for the purpose described in
subdivision (e).
(b) "Commercial personal property" means personal property
that is classified as commercial personal property under section
34c or would be classified as commercial personal property under
section 34c if not exempt from the collection of taxes under this
act under this section.
(c) "Eligible Internet data center property" means property
that is industrial personal property or commercial personal
property and is directly used to operate, maintain, or manage the
business of an Internet data center or a colocated business.
(d) "Industrial personal property" means personal property
that is classified as industrial personal property under section
34c or would be classified as industrial personal property under
section 34c if not exempt from the collection of taxes under this
act under this section.
(e) "Internet data center" means a facility that satisfies all
of the following:
(i) The facility physically houses networked computers servers
assembled for the purpose of centralizing the storage, processing,
management, or dissemination of data owned or controlled by the
customers of the Internet data center.
(ii) The facility is specifically designed and constructed to
provide a high-security environment for the location of servers and
similar equipment.
(iii) The facility is owned or operated by an entity whose
primary business, or the primary business of its parent company, is
that of an Internet data center and that entity generates 75% or
more of its revenue from the operations and business of an Internet
data center.
