EXEMPT PERSONAL PROPERTY TAX

Senate Bill 102 with House committee

Addendum to SFA analysis (3-3-99)

Senate Committee: Finance

House Committee: Tax Policy

ADDENDUM TO SENATE FISCAL AGENCY ANALYSIS OF SB 102 DATED 3-1-99:

HOUSE COMMITTEE ACTION:

The House Tax Policy adopted two amendments. (1) For the purposes of the section of the act being amended by Senate Bill 102, new personal property would not include, generally speaking, personal property located on real property owned by another, including buildings on leased land. The bill would cite property described in sections 14(6) and 8(h), (I), and (j) of the General Property Act, which deal with lease arrangements, among other things. (2) As passed by the Senate, the bill defined "eligible business" as a business engaged in manufacturing, mining, research and development, wholesale trade, or office operations. The second House amendment would make the term refer to a business "primarily engaged" in those activities.

POSITIONS:

The Michigan Jobs Commission supports the bill. (3-2-99)

The City of Lansing supports the bill. (3-2-99)

The Michigan Municipal League supports the bill. (3-2-99)

The Michigan Retailers Association does not oppose the bill but would encourage the legislature "to consider a more balanced and equitable application of any future efforts to provide personal property tax relief." (3-2-99)

The Michigan Assessors Association has indicated its opposition to the bill. (3-2-99)

Analyst: C. Couch

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.