SB-0933, As Passed Senate, December 6, 2007
November 29, 2007, Introduced by Senator STAMAS and referred to the Committee on Finance.
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 11 (MCL 207.561), as amended by 2004 PA 323.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) Except as provided in subsections (6) and (7),
there is levied upon every owner of a speculative building, a new
facility, or a replacement facility to which an industrial
facilities exemption certificate is issued a specific tax to be
known as the industrial facility tax and an administrative fee
calculated in the same manner and at the same rate that the local
tax collecting unit imposes on ad valorem taxes collected under the
general
property tax act, 1893 PA 206, MCL 211.1 to 211.157
211.155.
(2) The industrial facility tax and administrative fee are to
be paid annually, at the same times, in the same installments, and
to the same officer or officers as taxes and administrative fees,
if any, imposed under the general property tax act, 1893 PA 206,
MCL
211.1 to 211.157 211.155, are payable. Except as otherwise
provided in this section, the officer or officers shall disburse
the industrial facility tax payments received each year to and
among the state, cities, townships, villages, school districts,
counties, and authorities, at the same times and in the same
proportions as required by law for the disbursement of taxes
collected under the general property tax act, 1893 PA 206, MCL
211.1
to 211.157 211.155. To determine the proportion for the
disbursement of taxes under this subsection and for attribution of
taxes under subsection (5) for taxes collected under industrial
facilities exemption certificates issued before January 1, 1994,
the number of mills levied for local school district operating
purposes to be used in the calculation shall equal the number of
mills for local school district operating purposes levied in 1993
minus the number of mills levied under the state education tax act,
1993 PA 331, MCL 211.901 to 211.906, for the year for which the
disbursement is calculated.
(3) Except as provided by subsections (4) and (5), for an
intermediate school district receiving state aid under section 56,
62, or 81 of the state school aid act of 1979, 1979 PA 94, MCL
388.1656, 388.1662, and 388.1681, of the amount that would
otherwise be disbursed to or retained by the intermediate school
district, all or a portion, to be determined on the basis of the
tax rates being utilized to compute the amount of the state school
aid, shall be paid instead to the state treasury to the credit of
the state school aid fund established by section 11 of article IX
of the state constitution of 1963. If the sum of any commercial
facilities taxes prescribed by the commercial redevelopment act,
1978 PA 255, MCL 207.651 to 207.668, and the industrial facility
taxes paid to the state treasury to the credit of the state school
aid fund that would otherwise be disbursed to the local or
intermediate school district, under section 12 of the commercial
redevelopment act, 1978 PA 255, MCL 207.662, and this section,
exceeds the amount received by the local or intermediate school
district under sections 56, 62, and 81 of the state school aid act
of 1979, 1979 PA 94, MCL 388.1656, 388.1662, and 388.1681, the
department of treasury shall allocate to each eligible local or
intermediate school district an amount equal to the difference
between the sum of the commercial facilities taxes and the
industrial facility taxes paid to the state treasury to the credit
of the state school aid fund and the amount the local or
intermediate school district received under sections 56, 62, and 81
of the state school aid act of 1979, 1979 PA 94, MCL 388.1656,
388.1662, and 388.1681. This subsection does not apply to taxes
levied for either of the following:
(a) Mills allocated to an intermediate school district for
operating purposes as provided for under the property tax
limitation act, 1933 PA 62, MCL 211.201 to 211.217a.
(b) An intermediate school district that is not receiving
state aid under section 56 or 62 of the state school aid act of
1979, 1979 PA 94, MCL 388.1656 and 388.1662.
(4) For industrial facilities taxes levied before 1994, a
local or intermediate school district shall receive or retain its
industrial facility tax payment that is levied in any year and
becomes a lien before December 1 of the year if the district files
a statement with the state treasurer not later than June 30 of the
year certifying that the district does not expect to receive state
school aid payments under section 56, 62, or 81 of the state school
aid act of 1979, 1979 PA 94, MCL 388.1656, 388.1662, and 388.1681,
in the state fiscal year commencing in the year this statement is
filed and if the district did not receive state school aid payments
under section 56, 62, or 81 of the state school aid act of 1979,
1979 PA 94, MCL 388.1656, 388.1662, and 388.1681, for the state
fiscal year concluding in the year the statement required by this
subsection is filed. However, if a local or intermediate school
district receives or retains its summer industrial facility tax
payment under this subsection and becomes entitled to receive state
school aid payments under section 56, 62, or 81 of the state school
aid act of 1979, 1979 PA 94, MCL 388.1656, 388.1662, and 388.1681,
in the state fiscal year commencing in the year in which it filed
the statement required by this subsection, the district immediately
shall pay to the state treasury to the credit of the state school
aid fund an amount of the summer industrial facility tax payments
that would have been paid to the state treasury to the credit of
the state school aid fund under subsection (3) had not this
subsection allowed the district to receive or retain the summer
industrial facility tax payment.
(5) For industrial facilities taxes levied after 1993, the
amount to be disbursed to a local school district, except for that
amount of tax attributable to mills levied under section 1211(2) or
1211c of the revised school code, 1976 PA 451, MCL 380.1211 and
380.1211c, and mills that are not included as mills levied for
school operating purposes under section 1211 of the revised school
code, 1976 PA 451, MCL 380.1211, shall be paid to the state
treasury and credited to the state school aid fund established by
section 11 of article IX of the state constitution of 1963.
(6) A speculative building, a new facility, or a replacement
facility located in a renaissance zone under the Michigan
renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, is
exempt from the industrial facility tax levied under this act to
the extent and for the duration provided pursuant to the Michigan
renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, except
for that portion of the industrial facility tax attributable to a
special assessment or a tax described in section 7ff(2) of the
general property tax act, 1893 PA 206, MCL 211.7ff. The industrial
facility tax calculated under this subsection shall be disbursed
proportionately to the local taxing unit or units that levied the
special assessment or the tax described in section 7ff(2) of the
general property tax act, 1893 PA 206, MCL 211.7ff.
(7) Upon application for an exemption under this subsection by
a qualified start-up business, the governing body of a local tax
collecting unit may adopt a resolution to exempt a speculative
building, a new facility, or a replacement facility of a qualified
start-up business from the collection of the industrial facility
tax levied under this act in the same manner and under the same
terms and conditions as provided for the exemption in section 7hh
of the general property tax act, 1893 PA 206, MCL 211.7hh. The
clerk of the local tax collecting unit shall notify in writing the
assessor of the local tax collecting unit and the legislative body
of each taxing unit that levies ad valorem property taxes in the
local tax collecting unit. Before acting on the resolution, the
governing body of the local tax collecting unit shall afford the
assessor and a representative of the affected taxing units an
opportunity for a hearing. If a resolution authorizing the
exemption is adopted in the same manner as provided in section 7hh
of the general property tax act, 1893 PA 206, MCL 211.7hh, a
speculative building, a new facility, or a replacement facility
owned or operated by a qualified start-up business is exempt from
the industrial facility tax levied under this act, except for that
portion of the industrial facility tax attributable to a special
assessment or a tax described in section 7ff(2) of the general
property tax act, 1893 PA 206, MCL 211.7ff, for the year in which
the resolution is adopted. A qualified start-up business is not
eligible for an exemption under this subsection for more than 5
years. A qualified start-up business may receive the exemption
under this subsection in nonconsecutive years. The industrial
facility tax calculated under this subsection shall be disbursed
proportionately to the taxing unit or units that levied the special
assessment or the tax described in section 7ff(2) of the general
property tax act, 1893 PA 206, MCL 211.7ff. As used in this
subsection, "qualified start-up business" means that term as
defined in section 31a of the single business tax act, 1975 PA 228,
MCL 208.31a, or in section 415 of the Michigan business tax act,
2007 PA 36, MCL 208.1415.