SB-1303, As Passed House, July 6, 2004                                      

SUBSTITUTE FOR

SENATE BILL NO. 1303

                                                                             A bill to amend 1990 PA 100, entitled                                             

"City utility users tax act,"                                               

by amending section 5 of chapter 1 (MCL 141.1155), as amended by            

1998 PA 241.                                                                

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1                               CHAPTER 1                                       

2       Sec. 5.  (1) The uniform city utility users tax ordinance                   

3   does not apply to a person or corporation as to whom or which it            

4   is beyond the power of the city to impose the tax provided for in           

5   the uniform city utility users tax ordinance.                               

6       (2) For tax years beginning after December 31, 1996, a person               

7   or corporation, except a casino, is exempt from the tax imposed             

8   under this ordinance for public utility services provided in a              

9   renaissance zone to the extent and for the duration provided                

10  pursuant to the Michigan renaissance zone act, 1996 PA 376, MCL             

1   125.2681 to 125.2696.  As used in this subsection, "casino" means           

2   a casino or a parking lot, hotel, motel, or retail store owned or           

3   operated by a casino, an affiliate, or an affiliated company,               

4   regulated by this state pursuant to the Michigan gaming control             

5   and revenue act, the Initiated Law of 1996, MCL 432.201 to                  

6   432.216.                                                                    

7   (3) For tax years beginning after December 31, 2004, a                      

8   qualified start-up business is exempt from the tax imposed under            

9   this ordinance for the 12-month period beginning November 1 for             

10  each tax year in which all of the following occur:                          

11      (a) The qualified start-up business applies for the exemption               

12  as provided in subsection (4).                                              

13      (b) The governing body of the city adopts a resolution                      

14  approving the exemption as provided in subsection (5).                      

15      (4) A qualified start-up business may claim the exemption                   

16  under subsection (3) by filing an exemption affidavit claiming              

17  the exemption with the treasurer of the city that imposes the tax           

18  under this ordinance on a form prescribed by the city.  The                 

19  affidavit under this subsection shall be filed on or before                 

20  September 1 of each year that a taxpayer claims the exemption               

21  under subsection (3) and shall include all of the following:                

22      (a) A statement that the qualified start-up business was                    

23  eligible for and claimed the credit allowed under section 31a of            

24  the single business tax act, 1975 PA 228, MCL 208.31a, in the tax           

25  year that ended immediately before the November 1 in which the              

26  exemption under subsection (3) will be claimed.                             

27  (b) A copy of the qualified start-up business's annual return               

Senate Bill No. 1303 as amended June 24, 2004                               

1   required under the single business tax act, 1975 PA 228, MCL                

2   208.1 to 208.145, for the year in which the credit was claimed              

3   under section 31a of the single business tax act, 1975 PA 228,              

4   MCL 208.31a, upon which the exemption under subsection (3) is               

5   based.                                                                      

6       (c) A statement authorizing the department of treasury to                   

7   release information contained in the qualified start-up                     

8   business's annual return filed under the single business tax act,           

9   1975 PA 228, MCL 208.1 to 208.145, that pertains to the qualified           

10  start-up business credit claimed under section 31a of the single            

11  business tax act, 1975 PA 228, MCL 208.31a, upon which an                   

12  exemption under subsection (3) is based to the city.                        

13      (5) An exemption under subsection (3) is not allowed unless                 

14  the governing body of the city that collects the tax under this             

15  act adopts a resolution approving the exemption.  Exemptions                

16  under subsection (3) shall be approved at the last official                 

17  meeting of the governing body of the city in September of each              

18  year.  The resolution adopted by the governing body of the city             

19  may approve the exemption provided in subsection (3) for 1 or               

20  more of the qualified start-up businesses that claim the                    

21  exemption under subsection (3) by filing an affidavit on or                 

22   before September 1 as provided in subsection (4).

    <<(6) A qualified start-up business shall not receive the exemption under subsection (3) for more than a total of 5 tax years.  A qualified start-up business may receive the exemption under subsection (3) in nonconsecutive tax years.

23      (7)>> As used in this section, "qualified start-up business"                

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

25  tax act, 1975 PA 228, MCL 208.31a.