Bill Text: MI SB1112 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Property tax; exemptions; tax exemption for certain personal property owned by certain businesses that provide health care services; provide for. Amends sec. 9f of 1893 PA 206 (MCL 211.9f).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-09-05 - Referred To Committee On Finance [SB1112 Detail]

Download: Michigan-2017-SB1112-Introduced.html

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SENATE BILL No. 1112

 

 

September 5, 2018, Introduced by Senator CASPERSON and referred to the Committee on Finance.

 

 

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 9f (MCL 211.9f), as amended by 2017 PA 261.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9f. (1) The governing body of an eligible local assessing

 

district or, subject to subsection (5), the board of a Next

 

Michigan development corporation in which an eligible local

 

assessing district is a constituent member may adopt a resolution

 

to exempt from the collection of taxes under this act all new

 

personal property owned or leased by an eligible business located

 

in 1 or more eligible districts or distressed parcels designated in

 

the resolution or an eligible Next Michigan business as provided in

 

this section. The clerk of the eligible local assessing district or

 

the recording officer of a Next Michigan development corporation

 

shall notify in writing the assessor of the township or city in

 

which the eligible district or distressed parcel is located and the

 

legislative body of each taxing unit that levies ad valorem

 

property taxes in the eligible local assessing district in which

 

the eligible district or distressed parcel is located. Before

 

acting on the resolution, the governing body of the eligible local

 

assessing district or a Next Michigan development corporation shall

 

afford the assessor and a representative of the affected taxing

 

units an opportunity for a hearing.

 

     (2) The exemption under this section is effective on the

 

December 31 immediately succeeding the adoption of the resolution

 

by the governing body of the eligible local assessing district or a

 

Next Michigan development corporation and, except as otherwise

 

provided in subsection (9), shall continue continues in effect for

 

a period specified in the resolution. However, an exemption shall

 

not be granted under this section after December 31, 2012 for an

 

eligible business located in an eligible district identified in

 

subsection (11)(f)(ix) or in an eligible local assessing district

 

identified in subsection (11)(h)(ii). A copy of the resolution

 

shall be filed with the state tax commission, the state treasurer,

 

and the president of the Michigan strategic fund. A resolution is

 

not effective unless approved as provided in subsection (3).

 

     (3) Not more than 60 days after receipt of a copy of the

 

resolution adopted by the governing body of an eligible local

 

assessing district under subsection (1), the state tax commission

shall determine if the new personal property subject to the

 

exemption is owned or leased by an eligible business and if the

 

eligible business is located in 1 or more eligible districts. If

 

the state tax commission determines that the new personal property

 

subject to the exemption is owned or leased by an eligible business

 

and that the eligible business is located in 1 or more eligible

 

districts, the state treasurer, with the written concurrence of the

 

president of the Michigan strategic fund, shall approve the

 

resolution adopted under subsection (1) if the state treasurer and

 

the president of the Michigan strategic fund determine that

 

exempting new personal property of the eligible business is

 

necessary to reduce unemployment, promote economic growth, and

 

increase capital investment in this state. In addition, for an

 

eligible business located in an eligible local assessing district

 

described in subsection (11)(h)(ii), the resolution adopted under

 

subsection (1) shall be approved if the state treasurer and the

 

president of the Michigan strategic fund determine that granting

 

the exemption is a net benefit to this state, that expansion,

 

retention, or location of an eligible business will not occur in

 

this state without this exemption, and that there is no significant

 

negative effect on employment in other parts of this state as a

 

result of the exemption.

 

     (4) After December 31, 2016, a governing body of an eligible

 

local assessing district shall not adopt a resolution under

 

subsection (1) exempting new personal property from the collection

 

of taxes under this act without a written agreement entered into

 

with the eligible business subject to the exemption, which written

agreement contains a remedy provision that includes, but is not

 

limited to, the following:

 

     (a) A requirement that the exemption under this section is

 

revoked if the eligible business is determined to be in violation

 

of the provisions of the written agreement.

 

     (b) A requirement that the eligible business may be required

 

to repay all or part of the personal property taxes exempted under

 

this section if the eligible business is determined to be in

 

violation of the provisions of the written agreement.

 

     (c) A requirement that the exemption under this section is

 

revoked if the eligible business is determined to be in violation

 

of the provisions concerning the exemption set forth in the

 

resolution adopted under subsection (1).

 

     (d) A requirement that the exemption under this section is

 

revoked if continuance of the exemption would be contrary to any of

 

the requirements of this section, including, but not limited to,

 

the requirement that the eligible business be an eligible business

 

or an acquiring eligible business under this section.

 

     (5) A Next Michigan development corporation may only adopt a

 

resolution under subsection (1) exempting new personal property

 

from the collection of taxes under this act for new personal

 

property located in a Next Michigan development district. A Next

 

Michigan development corporation shall not adopt a resolution under

 

subsection (1) exempting new personal property from the collection

 

of taxes under this act without a written agreement entered into

 

with the eligible Next Michigan business subject to the exemption,

 

which written agreement contains a remedy provision that includes,

but is not limited to, all of the following:

 

     (a) A requirement that the exemption under this section is

 

revoked if the eligible Next Michigan business is determined to be

 

in violation of the provisions of the written agreement.

 

     (b) A requirement that the eligible Next Michigan business may

 

be required to repay all or part of the personal property taxes

 

exempted under this section if the eligible Next Michigan business

 

is determined to be in violation of the provisions of the written

 

agreement.

 

     (c) For an agreement entered into after December 31, 2016, a

 

requirement that the exemption under this section is revoked if the

 

eligible Next Michigan business is determined to be in violation of

 

the provisions concerning the exemption set forth in the resolution

 

adopted under subsection (1).

 

     (d) For an agreement entered into after December 31, 2016, a

 

requirement that the exemption under this section is revoked if

 

continuance of the exemption would be contrary to any of the

 

requirements of this section, including, but not limited to, the

 

requirement that the eligible Next Michigan business be an eligible

 

business or an acquiring eligible business under this section.

 

     (6) Subject to subsections (7) and (9), if an existing

 

eligible business sells or leases new personal property exempt

 

under this section to an acquiring eligible business, the exemption

 

granted to the existing eligible business shall continue continues

 

in effect for the period specified in the resolution adopted under

 

subsection (1) for the new personal property purchased or leased

 

from the existing eligible business by the acquiring eligible

business and for any new personal property purchased or leased by

 

the acquiring eligible business.

 

     (7) After December 31, 2007, an exemption for an existing

 

eligible business shall continue continues in effect for an

 

acquiring eligible business under subsection (6) only if the

 

continuation of the exemption is approved in a resolution adopted

 

by the governing body of an eligible local assessing district or

 

the board of a Next Michigan development corporation in which the

 

eligible local assessing district is a constituent member.

 

     (8) Notwithstanding 2000 PA 415, all of the following shall

 

apply to an exemption under this section that was approved by the

 

state tax commission on or before April 30, 1999, regardless of the

 

effective date of the exemption:

 

     (a) The exemption shall be continued for the term authorized

 

by the resolution adopted by the governing body of the eligible

 

local assessing district and approved by the state tax commission

 

with respect to buildings and improvements constructed on leased

 

real property during the term of the exemption if the value of the

 

real property is not assessed to the owner of the buildings and

 

improvements.

 

     (b) The exemption shall not be impaired or restricted with

 

respect to buildings and improvements constructed on leased real

 

property during the term of the exemption if the value of the real

 

property is not assessed to the owner of the buildings and

 

improvements.

 

     (9) Notwithstanding any other provision of this section to the

 

contrary, if new personal property exempt under this section on or

after December 31, 2012 is eligible manufacturing personal

 

property, that eligible manufacturing personal property shall

 

remain remains exempt under this section until the later of the

 

following:

 

     (a) The date that eligible manufacturing personal property

 

would otherwise be exempt from the collection of taxes under this

 

act under section 9m, 9n, or 9o.

 

     (b) The date that eligible manufacturing personal property is

 

no longer exempt under the resolution adopted under subsection (1).

 

     (10) An eligible business that owns or leases new personal

 

property that is exempt under this section and that is eligible

 

personal property shall deliver the combined document in the time,

 

form, and manner prescribed in sections 9m and 9n to the assessor

 

of the township or city in which the eligible personal property is

 

located each year that the new personal property is eligible

 

personal property. The form shall must indicate that the new

 

personal property is eligible personal property.

 

     (11) As used in this section:

 

     (a) "Acquiring eligible business" means an eligible business

 

that purchases or leases assets of an existing eligible business,

 

including the purchase or lease of new personal property exempt

 

under this section, and that will conduct business operations

 

similar to those of the existing eligible business at the location

 

of the existing eligible business within the eligible district.

 

     (b) "Authorized business" means that term as defined in

 

section 3 of the Michigan economic growth authority act, 1995 PA

 

24, MCL 207.803.

     (c) "Eligible manufacturing personal property" means that term

 

as defined in section 9m.

 

     (d) "Distressed parcel" means a parcel of real property

 

located in a city or village that meets all of the following

 

conditions:

 

     (i) Is located in a qualified downtown revitalization

 

district. As used in this subparagraph, "qualified downtown

 

revitalization district" means an area located within 1 or more of

 

the following:

 

     (A) The boundaries of a downtown district as defined in

 

section 1 of 1975 PA 197, MCL 125.1651.

 

     (B) The boundaries of a principal shopping district or a

 

business improvement district as defined in section 1 of 1961 PA

 

120, MCL 125.981.

 

     (C) The boundaries of the local governmental unit in an area

 

that is zoned and primarily used for business as determined by the

 

local governmental unit.

 

     (ii) Meets 1 of the following conditions:

 

     (A) Has a blighted or functionally obsolete building located

 

on the parcel. As used in this sub-subparagraph, "blighted" and

 

"functionally obsolete" mean those terms as defined in section 2 of

 

the brownfield redevelopment financing act, 1996 PA 381, MCL

 

125.2652.

 

     (B) Is a vacant parcel that had been previously occupied.

 

     (iii) Is zoned to allow for mixed use.

 

     (e) "Eligible business" means, effective August 7, 1998, a

 

business engaged primarily in manufacturing, mining, research and

development, wholesale trade, office operations, or the operation

 

of a facility for which the business that owns or operates the

 

facility is an eligible taxpayer. The term also means, effective on

 

the effective date of the amendatory act that added this sentence,

 

a business engaged primarily in health care services. For purposes

 

of a Next Michigan development corporation, eligible business means

 

only an eligible Next Michigan business. Eligible business does not

 

include a casino, retail establishment, professional sports

 

stadium, or that portion of an eligible business used exclusively

 

for retail sales. Professional sports stadium does not include a

 

sports stadium in existence on June 6, 2000 that is not used by a

 

professional sports team on the date of the resolution adopted

 

pursuant to subsection (1). As used in this subdivision, "casino"

 

means a casino regulated by this state under the Michigan gaming

 

control and revenue act, 1996 IL 1, MCL 432.201 to 432.226, and all

 

property associated or affiliated with the operation of a casino,

 

including, but not limited to, a parking lot, hotel, motel, or

 

retail store.

 

     (f) "Eligible district" means 1 or more of the following:

 

     (i) An industrial development district as that term is defined

 

in 1974 PA 198, MCL 207.551 to 207.572.

 

     (ii) A renaissance zone as that term is defined in the

 

Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

 

125.2696.

 

     (iii) An enterprise zone as that term is defined in the

 

enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123.

 

     (iv) A brownfield redevelopment zone as that term is

designated under the brownfield redevelopment financing act, 1996

 

PA 381, MCL 125.2651 to 125.2670.

 

     (v) An empowerment zone designated under subchapter U of

 

chapter 1 of the internal revenue code of 1986, 26 USC 1391 to

 

1397F.

 

     (vi) An authority district or a development area as those

 

terms are defined in the tax increment finance authority act, 1980

 

PA 450, MCL 125.1801 to 125.1830.

 

     (vii) An authority district as that term is defined in the

 

local development financing act, 1986 PA 281, MCL 125.2151 to

 

125.2174.

 

     (viii) A downtown district or a development area as those

 

terms are defined in 1975 PA 197, MCL 125.1651 to 125.1681.

 

     (ix) An area that contains an eligible taxpayer.

 

     (x) A Next Michigan development district.

 

     (g) "Eligible distressed area" means 1 of the following:

 

     (i) That term as defined in section 11 of the state housing

 

development authority act of 1966, 1966 PA 346, MCL 125.1411.

 

     (ii) An area that contains an eligible taxpayer.

 

     (h) "Eligible local assessing district" means a city, village,

 

or township that contains an eligible distressed area or that is a

 

party to an intergovernmental agreement creating a Next Michigan

 

development corporation, or a city, village, or township that meets

 

1 or more of the following conditions and is located in a county

 

all or a portion of which borders another state or Canada:

 

     (i) Is currently served by not fewer than 4 of the following

 

existing services:

     (A) Water.

 

     (B) Sewer.

 

     (C) Police.

 

     (D) Fire.

 

     (E) Trash.

 

     (F) Recycling.

 

     (ii) Is party to an agreement under 1984 PA 425, MCL 124.21 to

 

124.30, with a city, village, or township that provides not fewer

 

than 4 of the following existing services:

 

     (A) Water.

 

     (B) Sewer.

 

     (C) Police.

 

     (D) Fire.

 

     (E) Trash.

 

     (F) Recycling.

 

     (i) "Eligible Next Michigan business" means that term as

 

defined in section 3 of the Michigan economic growth authority act,

 

1995 PA 24, MCL 207.803.

 

     (j) "Eligible personal property" means that term as defined in

 

section 3(e)(ii) or (iv) of the state essential services assessment

 

act, 2014 PA 92, MCL 211.1053.

 

     (k) "Eligible taxpayer" means a taxpayer that meets both of

 

the following conditions:

 

     (i) Is an authorized business.

 

     (ii) Is eligible for tax credits described in section 9 of the

 

Michigan economic growth authority act, 1995 PA 24, MCL 207.809.

 

     (l) "Existing eligible business" means an eligible business

identified in a resolution adopted under subsection (1) for which

 

an exemption has been granted under this section.

 

     (m) "New personal property" means personal property that was

 

not previously subject to tax under this act, or personal property

 

that was not previously placed in service in this state and that is

 

placed in an eligible district after a resolution under subsection

 

(1) is approved. As used in this subdivision, for exemptions

 

approved by the state treasurer under subsection (3) after April

 

30, 1999, new personal property does not include buildings

 

described in section 14(6) and personal property described in

 

section 8(h), (i), and (j). For exemptions subject to resolutions

 

adopted under subsection (1) after December 31, 2014, new personal

 

property does not include eligible manufacturing personal property.

 

     (n) "Next Michigan development corporation" and "Next Michigan

 

development district" mean those terms as defined under the Next

 

Michigan development act, 2010 PA 275, MCL 125.2951 to 125.2959.