P.A. 198 ADMINISTRATIVE FEE - H.B. 4156 (H-1): FLOOR ANALYSIS
House Bill 4156 (Substitute H-1 as reported without amendment)
Sponsor: Representative Gary Woronchak
House Committee: Commerce
Senate Committee: Economic Development, International Trade and Regulatory Affairs
CONTENT
The bill would amend the plant rehabilitation and industrial development Act (commonly referred to as P.A. 198) to levy an administrative fee upon every owner of a speculative building, new facility, or replacement facility to which an industrial facilities exemption certificate is issued under the Act.
The Act imposes on those owners a specific tax known as the industrial facility tax, in lieu of property taxes under the General Property Tax Act. The bill would levy an administrative fee calculated in the same manner and at the same rate that the local tax collecting unit imposed on ad valorem taxes collected under the General Property Tax Act. As with the industrial facility tax imposed under P.A. 198, the fee levied under the bill would have to be paid annually and at the same times, in the same installments, and to the same officer or officers as taxes and administrative fees imposed under the General Property Tax Act.
(The General Property Tax Act provides that, if the governing body of a local property tax collecting unit approves, by resolution or ordinance, an authorization for the imposition of a property tax administration fee, the local property tax collecting unit must add a property tax administration fee of not more than 1% of the total tax bill per parcel. A property tax administration fee is "a fee to offset costs incurred by a collecting unit in assessing property values, in collecting the property tax levies, and in the review and appeal process".)
MCL 207.561 - Legislative Analyst: P. Affholter
FISCAL IMPACT
State Impact: The bill would have no fiscal impact on the State.
Local Impact: The bill would increase revenues received by local units that have passed ordinances allowing the imposition of an administrative fee for the collection of property taxes. The administrative fee is limited by the General Property Tax Act to 1% of the tax imposed. An unknown number of local units have passed ordinances allowing the imposition of administrative fees, although it is likely that most, if not all, local units have such ordinances. Tax revenues under P.A. 198 are expected to total $123.0 million in fiscal year 2000-01. If all local units were to assess the administrative fee at its maximum level, local unit revenues under the bill would increase by $1.2 million per year.
Date Completed: 10-18-01 - Fiscal Analyst: D. ZinFloor\hb4156 - Bill Analysis @ http://www.senate.state.mi.us/sfa
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.