PLANT REHAB ABATEMENTS H.B. 5136 (S-1): FLOOR ANALYSIS
House Bill 5136 (Substitute S-1 as reported) Sponsor: Representative Gerald Law House Committee: Tax Policy
Senate Committee: Economic Development, International Trade and Regulatory Affairs
The bill would amend the plant rehabilitation and industrial development Act to specify that if an industrial facilities tax exemption certificate were awarded to a new facility, a replacement facility, or a speculative building for less than the maximum period permitted under the Act, the owner or lessee could apply for another certificate. If the local unit disapproved the application, there would be no right of appeal as there is with an initial application. The sum of the exemption periods could not exceed the maximum for a single certificate. The bill would apply to certificates that became effective after December 31, 1995.
The Act allows owners of industrial facilities located in plant rehabilitation or industrial development districts to apply for tax exemption certificates exempting the facilities from any ad valorem real and personal property taxes. Instead, the owners pay an industrial facility tax. Unless revoked, an exemption certificate generally is in effect for the period determined by the local legislative body, but not more than 12 years.
MCL 207.559 et al. Legislative Analyst: L. Burghardt
The bill would have an indeterminate fiscal impact on the State and local governments. It would depend on the number of subsequent abatements granted.
Date Completed: 11-9-95 Fiscal Analyst: R. Ross
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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.