August 9, 2006, Introduced by Reps. Angerer, Alma Smith, Polidori, Tobocman, Hood, Kolb, Sheltrown, Hunter, Espinoza, Mayes, Vagnozzi, Zelenko, Clack, Kathleen Law, Cushingberry, Plakas, Accavitti, Condino, Bennett, Bieda, Leland, Lemmons, Jr., McDowell, Byrum, Gillard, Murphy, Meisner and Lemmons, III and referred to the Committee on Commerce.
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 sections 5 and 22 (MCL 207.555 and 207.572), section 5
as amended by 1996 PA 323 and section 22 as amended by 1994 PA 266.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) After the establishment of a district, the owner
or lessee of a facility may file an application for an industrial
facilities exemption certificate with the clerk of the local
governmental unit that established the plant rehabilitation
district or industrial development district. The application shall
be filed in the manner and form prescribed by the commission. The
application shall contain or be accompanied by a general
description of the facility and a general description of the
proposed use of the facility, the general nature and extent of the
restoration, replacement, or construction to be undertaken, a
descriptive list of the equipment that will be a part of the
facility, a time schedule for undertaking and completing the
restoration, replacement, or construction of the facility, and
information relating to the requirements in section 9.
(2) Upon receipt of an application for an industrial
facilities exemption certificate, the clerk of the local
governmental unit shall notify in writing the assessor of the
assessing unit in which the facility is located or to be located,
and the legislative body of each taxing unit that levies ad valorem
property taxes in the local governmental unit in which the facility
is located or to be located. Before acting upon the application,
the legislative body of the local governmental unit shall afford
the applicant, the assessor, and a representative of the affected
taxing units an opportunity for a hearing.
(3) The local governmental unit may charge the applicant an
application fee to process an application for an industrial
facilities exemption certificate. The application fee shall not
exceed the actual cost incurred by the local governmental unit in
processing the application or 2% of the total property taxes abated
under this act for the term that the industrial facilities
exemption certificate is in effect, whichever is less. A local
governmental unit shall not charge an applicant any other fee under
this act.
(4) Beginning January 1, 2006, the owner or lessee of a
facility who has been found guilty of a criminal violation or found
responsible for a civil violation under 29 USC 1131 or 1132 in the
immediately preceding 10 years from the date of application is not
eligible for an industrial facilities exemption certificate under
this act.
Sec. 22. (1) A new industrial facilities exemption certificate
shall not be approved and issued under this act after April 1,
1994, unless a written agreement is entered into between the local
governmental unit and the person to whom the certificate is to be
issued, and filed with the department of treasury.
(2) Beginning January 1, 2006, all written agreements
described in subsection (1) shall contain a provision requiring the
payment of a penalty if the person to whom the certificate is
issued is found guilty of a criminal violation or found responsible
for a civil violation under 29 USC 1131 or 1132. The penalty is
equal to the difference between the industrial facility tax and the
general ad valorem taxes that would have been levied if the
certificate was not granted for each year the certificate was in
effect.