HB-5737, As Passed House, May 19, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5737

                                                                             A bill to amend 1974 PA 198, entitled                                             

"An act to provide for the establishment of plant rehabilitation            

districts and industrial development districts in local                     

governmental units; to provide for the exemption from certain               

taxes; to levy and collect a specific tax upon the owners of                

certain facilities; to impose and provide for the disposition of            

an administrative fee; to provide for the disposition of the tax;           

to provide for the obtaining and transferring of an exemption               

certificate and to prescribe the contents of those certificates;            

to prescribe the powers and duties of the state tax commission              

and certain officers of local governmental units; and to provide            

penalties,"                                                                 

by amending section 7 (MCL 207.557), as amended by 1996 PA 513.             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 7.  (1) Within 60 days after receipt of an approved                    

2   application or an appeal of a disapproved application that was              

3   submitted to the commission before October 31 of that year, the             

4   commission shall determine whether the facility is a speculative            

5   building or designed and acquired primarily for the purpose of              

6   restoration or replacement of obsolete industrial property or the           

1   construction of new industrial property, and whether the facility           

2   otherwise complies with section 9 and with the other provisions             

3   of this act.  If the commission so finds, it shall issue an                 

4   industrial facilities exemption certificate.  Before issuing a              

5   certificate the commission shall notify the state treasurer of              

6   the application and shall obtain the written concurrence of the             

7   department of  consumer and industry services labor and economic           

8   growth that the application complies with the requirements in               

9   section 9.  Except as otherwise provided in section 7a, the                 

10  effective date of the certificate for a replacement facility or             

11  new facility is the immediately succeeding December 31 following            

12  the date the certificate is issued.  For a speculative building             

13  or a portion of a speculative building, except as otherwise                 

14  provided in section 7a, the effective date of the certificate is            

15  the immediately succeeding December 31 following the date the               

16  speculative building, or the portion of a speculative building,             

17  is used as a manufacturing facility.                                        

18      (2) The commission shall send an industrial facilities                      

19  exemption certificate, when issued, by certified mail to the                

20  applicant, and a certified copy by certified mail to the assessor           

21  of the assessing unit in which the facility is located or to be             

22  located, and that copy shall be filed in his or her office.                 

23  Notice of the commission's refusal to issue a certificate shall             

24  be sent by certified mail to the same persons.                              

25      (3) Notwithstanding any other provision of this act, if on                  

26  December 29, 1986 a local governmental unit passed a resolution             

27  approving an exemption certificate for 10 years for real and                

1   personal property but the commission did not receive the                    

2   application until 1992 and the application was not made complete            

3   until 1995, then the commission shall issue, for that property,             

4   an industrial facilities exemption certificate that begins                  

5   December 30, 1987 and ends December 30, 1997.                               

6   (4) Notwithstanding any other provision of this act, if                     

7   pursuant to section 16a a local governmental unit passed a                  

8   resolution approving an industrial facilities exemption                     

9   certificate for a new facility on October 14, 2003 for a                    

10  certificate that expired in December 2002, the commission shall             

11  issue for that property an industrial facilities exemption                  

12  certificate that begins on December 30, 2002 and ends December              

13  30, 2009.