SB-1302, As Passed House, July 6, 2004

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1302

                                                                             A bill to amend 1984 PA 385, entitled                                             

"Technology park development act,"                                          

by amending section 12 (MCL 207.712), as amended by 1996 PA 445.            

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 12.  (1) Except as provided in  subsection subsections

2   (8) and (9), there is levied upon every owner of record and every           

3   user or occupant, if known, of a facility to which a certificate            

4   is issued, a specific tax to be known as a technology park                  

5   facilities tax.                                                             

6       (2) The amount of the technology park facilities tax in each                

7   year shall be determined by multiplying the state equalized                 

8   valuation of the facility excluding the land and the inventory              

9   personal property by the sum of 1/2 of the total mills levied as            

10  ad valorem taxes for that year by all taxing units within which             

11  the facility is located other than mills levied by a local or               

1   intermediate school district within which the facility is located           

2   for school operating purposes or mills levied under the state               

3   education tax act,  Act No. 331 of the Public Acts of 1993, being           

4   sections 211.901 to 211.906 of the Michigan Compiled Laws 1993             

5   PA 331, MCL 211.901 to 211.906, plus 1/2 of the number of mills             

6   levied for school operating purposes in 1993.                               

7       (3) The technology park facilities tax shall be collected,                  

8   disbursed, and assessed in accordance with this act.                        

9       (4) The technology park facilities tax shall be an annual tax               

10  payable at the same time, in the same manner, and to the same               

11  officer or officers as taxes imposed under the general property             

12  tax act,  Act No. 206 of the Public Acts of 1893, being sections            

13  211.1 to 211.157 of the Michigan Compiled Laws 1893 PA 206, MCL            

14  211.1 to 211.157, are payable.  Except as otherwise provided in             

15  this section, the officer or officers shall disburse technology             

16  park facilities tax payments received each year to the state,               

17  cities, townships, villages, school districts, counties,                    

18  community and junior colleges, and authorities, at the times and            

19  in the proportions required by law for the disbursement of taxes            

20  collected under  Act No. 206 of the Public Acts of 1893 the                

21  general property tax act, 1893 PA 206, MCL 211.1 to 211.157.  To            

22  determine the proportion for the disbursement of taxes under this           

23  subsection and for attribution of taxes under subsection (6) for            

24  taxes collected pursuant to technology park facilities exemption            

25  certificates issued before January 1, 1994, the number of mills             

26  levied for local school district operating purposes to be used in           

27  the calculation shall equal the number of mills for local school            

1   district operating purposes levied in 1993 minus the number of              

2   mills levied under  Act No. 331 of the Public Acts of 1993 the             

3   state education tax act, 1993 PA 331, MCL 211.901 to 211.906, for           

4   the year for which the disbursement is calculated.                          

5       (5) Except as provided in subsection (6), all or a portion of               

6   the amount to be disbursed to intermediate school districts                 

7   receiving state aid under sections 56, 62, and 81 of the state              

8   school aid act of 1979,  Act No. 94 of the Public Acts of 1979,             

9   being sections 388.1656, 388.1662, and 388.1681 of the Michigan             

10  Compiled Laws 1979 PA 94, MCL 388.1656, 388.1662, and 388.1681,            

11  as determined on the basis of the tax rates being utilized to               

12  compute the amount of state aid, shall be paid to the state                 

13  treasury and credited to the state school aid fund established by           

14  section 11 of article IX of the state constitution of 1963.                 

15      (6) For technology park facilities taxes levied after 1993                  

16  for school operating purposes, the amount to be disbursed to a              

17  local school district shall be paid to the state treasury and               

18  credited to the state school aid fund established by section 11             

19  of article IX of the state constitution of 1963.                            

20      (7) The officer or officers shall send a copy of the amount                 

21  of disbursement made to each unit under this section to the                 

22  department on a form provided by the department.                            

23      (8) A facility located in a renaissance zone under the                      

24  Michigan renaissance zone act,  Act No. 376 of the Public Acts of           

25  1996, being sections 125.2681 to 125.2696 of the Michigan                   

26  Compiled Laws 1996 PA 376, MCL 125.2681 to 125.2696, is exempt             

27  from the technology park facilities tax levied under this act to            

1   the extent and for the duration provided pursuant to  Act No. 376           

2   of the Public Acts of 1996 the Michigan renaissance zone act,              

3   1996 PA 376, MCL 125.2681 to 125.2696, except for that portion of           

4   the technology park facilities tax attributable to a special                

5   assessment or a tax described in section 7ff(2) of the general              

6   property tax act,  Act No. 206 of the Public Acts of 1893, being            

7   section 211.7ff of the Michigan Compiled Laws 1893 PA 206, MCL             

8   211.7ff.  The technology park facilities tax calculated under               

9   this subsection shall be disbursed proportionately to the local             

10  taxing unit or units that levied the special assessment or the              

11  tax described in section 7ff(2) of  Act No. 206 of the Public               

12  Acts of 1893 the general property tax act, 1893 PA 206, MCL                

13  211.7ff.                                                                    

14  (9) Upon application for an exemption under this subsection                 

15  by a qualified start-up business, the governing body of a local             

16  tax collecting unit may adopt a resolution to exempt a facility             

17  of a qualified start-up business from the collection of the                 

18  technology park facilities tax levied under this act in the same            

19  manner and under the same terms and conditions as provided for              

20  the exemption in section 7hh of the general property tax act,               

21  1893 PA 206, MCL 211.7hh.  The clerk of the local tax collecting            

22  unit shall notify in writing the assessor of the local tax                  

23  collecting unit and the legislative body of each taxing unit that           

24  levies ad valorem property taxes in the local tax collecting                

25  unit.  Before acting on the resolution, the governing body of the           

26  local tax collecting unit shall afford the assessor and a                   

27  representative of the affected taxing units an opportunity for a            

1   hearing.  If a resolution authorizing the exemption is adopted in           

2   the same manner as provided in section 7hh of the general                   

3   property tax act, 1893 PA 206, MCL 211.7hh, the facility owned or           

4   operated by a qualified start-up business is exempt from the                

5   technology park facilities tax levied under this act, except for            

6   that portion of the technology park facilities tax attributable             

7   to a special assessment or a tax described in section 7ff(2) of             

8   the general property tax act, 1893 PA 206, MCL 211.7ff, for the             

9   year in which the resolution is adopted.  A qualified start-up              

10  business is not eligible for an exemption under this subsection             

11  for more than 5 years.  A qualified start-up business may receive           

12  the exemption under this subsection in nonconsecutive years.  The           

13  technology park facilities tax calculated under this subsection             

14  shall be disbursed proportionately to the taxing unit or units              

15  that levied the special assessment or the tax described in                  

16  section 7ff(2) of the general property tax act, 1893 PA 206,                

17  MCL 211.7ff.  As used in this subsection, "qualified start-up               

18  business" means that term as defined in section 31a of the single           

19  business tax act, 1975 PA 228, MCL 208.31a.