HB-6609, As Passed House, November 13, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6609

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

(MCL 211.1 to 211.155) by adding section 7mm.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 7mm. (1) Beginning December 31, 2009, an eligible energy

conversion device for which an exemption certificate is issued

under this section is exempt from the collection of taxes under

this act as prescribed in this section.

(2) An exemption under this section is effective beginning on

December 31 in the year in which an exemption certificate is issued

under this section and shall continue unless revoked as provided in

this section.

(3) An owner of an energy conversion device may submit an

application for an exemption certificate to the state tax

commission and to the Michigan next energy authority. The

application shall be in a form prescribed by the state tax

commission and the Michigan next energy authority.

(4) If the Michigan next energy authority determines that the

energy conversion device is an eligible energy conversion device,

the Michigan next energy authority shall certify the energy

conversion device's eligibility to the state tax commission and the

state tax commission shall issue an exemption certificate for that

energy conversion device. If the Michigan next energy authority

determines that the energy conversion device is not an eligible

energy conversion device, the Michigan next energy authority shall

notify the state tax commission that the energy conversion device

is not eligible for an exemption under this section. An exemption

certificate issued under this section shall state the total

acquisition cost of the energy conversion device.

(5) The state tax commission shall send an exemption

certificate issued under subsection (4), or notice of the Michigan

next energy authority's refusal to certify the energy conversion

device, to the owner of the energy conversion device subject to the

certificate and to the assessor of the local tax collecting unit in

which the energy conversion device subject to the certificate is

located. The exemption certificate or notice of refusal shall be

sent by first-class mail.

(6) The state tax commission shall revoke an exemption

certificate issued under this section if the exemption certificate

was obtained by fraud or misrepresentation. The state tax

commission shall send notice of an exemption certificate's

revocation under this section to the owner of the personal property

subject to the certificate and to the assessor of the local tax

collecting unit in which the personal property subject to the

certificate is located. The revocation notice shall be sent by

first-class mail. If an exemption certificate is revoked under this

subsection, the assessor shall remove the exemption of the energy

conversion device and, if the tax roll is in the local tax

collecting unit's possession, amend the tax roll to reflect the

denial and the local treasurer shall within 30 days of the date of

the denial issue a corrected tax bill for any additional taxes with

interest and penalties computed from the date the taxes were last

payable without interest or penalty if the energy conversion device

had not been exempted from the collection of taxes under this

section. If the tax roll is in the county treasurer's possession,

the tax roll shall be amended to reflect the denial and the county

treasurer shall within 30 days of the date of the denial prepare

and submit a supplemental tax bill for any additional taxes,

together with interest and penalties computed from the date the

taxes were last payable without interest or penalty if the energy

conversion device had not been exempted from the collection of

taxes under this section. Interest on any tax set forth in a

corrected or supplemental tax bill shall again begin to accrue 60

days after the date the corrected or supplemental tax bill is

issued. Taxes levied in a corrected or supplemental tax bill shall

be returned as delinquent on March 1 in the year immediately

succeeding the year in which the corrected or supplemental tax bill

is issued.

House Bill No. 6609 (H-2) as amended November 13, 2008

(7) An exemption certificate for an eligible energy conversion

device shall not be issued under this section if installation of

the energy conversion device is completed [before the effective date of

the amendatory act that added this section or more than 2 years before the application for the certificate is made or] after December 31, 2013.

Any exemption certificates issued under this section before

December 31, 2013 shall remain in effect unless revoked as provided

in subsection (6).

(8) Any party aggrieved by the issuance, refusal to issue, or

revocation of an exemption certificate under this section may

appeal that issuance, refusal to issue, or revocation to the

Michigan tax tribunal.

(9) This section does not preclude the necessity of obtaining

a permit for construction required by any other law or ordinance.

(10) As used in this section:

(a) "Eligible energy conversion device" means a small-scale

solar, wind, geothermal, or water energy conversion device which

meets all standards for a solar, wind, geothermal, or water energy

conversion device prescribed by the Michigan next energy authority.

(b) "Michigan next energy authority" means the Michigan next

energy authority created in section 3 of the Michigan next energy

authority act, 2002 PA 593, MCL 207.823.

of not more than 150 kilowatts.

(d) "Solar, wind, geothermal, or water energy conversion

device" means a mechanism or series of mechanisms designed

primarily to collect, convert, transfer, or store for future use

solar, wind, geothermal, or water energy for the purposes of

heating, cooling, or electric supply, but not those parts of a

heating, cooling, or electric supply system that would be required

regardless of the energy source being utilized. However, a water

energy conversion device includes only those devices that utilize

groundwater heat pumps or low-head hydro-energy conversion systems.

Low-head hydro-energy conversion systems do not include public

utility property.