September 24, 2008, Introduced by Rep. Leland and referred to the Committee on New Economy and Quality of Life.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 9f (MCL 211.9f), as amended by 2008 PA 230.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9f. (1) The governing body of an eligible local assessing
district or the board of an aerotropolis development corporation in
which an eligible local assessing district is a constituent member
may adopt a resolution to exempt from the collection of taxes under
this act all new personal property owned or leased by an eligible
business located in 1 or more eligible districts or distressed
parcels designated in the resolution. The clerk of the eligible
local assessing district or the recording officer of an
aerotropolis development corporation shall notify in writing the
assessor of the local tax collecting unit in which the eligible
district or distressed parcel is located and the legislative body
of each taxing unit that levies ad valorem property taxes in the
eligible local assessing district in which the eligible district or
distressed parcel is located. Before acting on the resolution, the
governing body of the eligible local assessing district or an
aerotropolis development corporation shall afford the assessor and
a representative of the affected taxing units an opportunity for a
hearing. An aerotropolis development corporation shall not grant
more than 2 exemptions under this section per year and shall not
grant an exemption to an eligible business other than a qualified
aerotropolis business without the prior written approval of the
eligible local assessing district in which the aerotropolis
development area is located.
(2) The exemption under this section is effective on the
December 31 immediately succeeding the adoption of the resolution
by the governing body of the eligible local assessing district or
an aerotropolis development corporation and shall continue in
effect for a period specified in the resolution. A copy of the
resolution shall be filed with the state tax commission and, for a
resolution adopted by an aerotropolis development corporation, with
the state treasurer, the president of the Michigan strategic fund,
and the clerk of the eligible local assessing district. A
resolution
is not effective unless approved by the state tax
commission
as provided in subsection (3) or (4).
(3) Not more than 60 days after receipt of a copy of the
resolution adopted by the governing body of an eligible local
assessing district under subsection (1), the state tax commission
shall approve or disapprove the resolution. The state treasurer,
with the written concurrence of the president of the Michigan
strategic fund, shall advise the state tax commission as to whether
exempting new personal property of the eligible business is
necessary to reduce unemployment, promote economic growth, and
increase capital investment in this state.
(4) Not more than 60 days after receipt of a copy of the
resolution adopted by the board of an aerotropolis development
corporation under subsection (1), the state treasurer and the
president of the Michigan strategic fund shall approve or
disapprove the resolution. In determining whether to approve or
disapprove the resolution the state treasurer and the president of
the Michigan strategic fund shall consider all of the following:
(a) Whether the eligible business or the qualified
aerotropolis business has the ability to be located outside of this
state.
(b) The number of jobs that will be created or will be
maintained by the eligible business or the qualified aerotropolis
business as a result of the exemption under this section and the
amount of the wages for those jobs.
(c) If the eligible business or the qualified aerotropolis
business is seeking to locate in this state, whether granting the
exemption under this section to the eligible business or the
qualified aerotropolis business will be a net benefit for this
state.
(d) Whether granting the exemption under this section to the
eligible business or the qualified aerotropolis business will have
a negative effect on employment in other areas of this state.
(e) Whether the eligible business or the qualified
aerotropolis business will likely locate in this state without the
exemption under this section and whether the exemption puts other
portions of this state at an unfair competitive disadvantage.
(5) (4)
Subject to subsection (5) (6),
if an existing eligible
business sells or leases new personal property exempt under this
section to an acquiring eligible business, the exemption granted to
the existing eligible business shall continue in effect for the
period specified in the resolution adopted under subsection (1) for
the new personal property purchased or leased from the existing
eligible business by the acquiring eligible business and for any
new personal property purchased or leased by the acquiring eligible
business.
(6) (5)
After December 31, 2007, an
exemption for an existing
eligible business shall continue in effect for an acquiring
eligible
business under subsection (4) (5)
only if the continuation
of the exemption is approved in a resolution adopted by the
governing body of an eligible local assessing district or the board
of an aerotropolis development corporation in which the local
assessing district is a constituent member.
(7) (6)
Notwithstanding the amendatory act
that added section
2(1)(c), all of the following shall apply to an exemption under
this section that was approved by the state tax commission on or
before April 30, 1999, regardless of the effective date of the
exemption:
(a) The exemption shall be continued for the term authorized
by the resolution adopted by the governing body of the eligible
local assessing district and approved by the state tax commission
with respect to buildings and improvements constructed on leased
real property during the term of the exemption if the value of the
real property is not assessed to the owner of the buildings and
improvements.
(b) The exemption shall not be impaired or restricted with
respect to buildings and improvements constructed on leased real
property during the term of the exemption if the value of the real
property is not assessed to the owner of the buildings and
improvements.
(8) (7)
As used in this section:
(a) "Acquiring eligible business" means an eligible business
that purchases or leases assets of an existing eligible business,
including the purchase or lease of new personal property exempt
under this section, and that will conduct business operations
similar to those of the existing eligible business at the location
of the existing eligible business within the eligible district.
(b) "Aerotropolis development area" means that term as defined
in the local development financing act, 1986 PA 281, MCL 125.2151
to 125.2174.
(c) "Aerotropolis development corporation" means that term as
defined in the Michigan renaissance zone act, 1996 PA 376, MCL
125.2681 to 125.2696.
(d) (b)
"Distressed parcel" means
a parcel of real property
located in a city or village that meets all of the following
conditions:
(i) Is located in a qualified downtown revitalization district.
As used in this subparagraph, "qualified downtown revitalization
district" means an area located within 1 or more of the following:
(A) The boundaries of a downtown district as defined in
section 1 of 1975 PA 197, MCL 125.1651.
(B) The boundaries of a principal shopping district or a
business improvement district as defined in section 1 of 1961 PA
120, MCL 125.981.
(C) The boundaries of the local governmental unit in an area
that is zoned and primarily used for business as determined by the
local governmental unit.
(ii) Meets 1 of the following conditions:
(A) Has a blighted or functionally obsolete building located
on the parcel. As used in this sub-subparagraph, "blighted" and
"functionally obsolete" mean those terms as defined in section 2 of
the brownfield redevelopment financing act, 1996 PA 381, MCL
125.2652.
(B) Is a vacant parcel that had been previously occupied.
(iii) Is zoned to allow for mixed use.
(e) (c)
"Eligible business"
means, effective August 7, 1998, a
business engaged primarily in manufacturing, mining, research and
development, wholesale trade, or office operations. Eligible
business does not include a casino, retail establishment,
professional sports stadium, or that portion of an eligible
business used exclusively for retail sales. As used in this
subdivision, "casino" means a casino regulated by this state
pursuant to the Michigan gaming control and revenue act, 1996 IL 1,
MCL 432.201 to 432.226, and all property associated or affiliated
with the operation of a casino, including, but not limited to, a
parking lot, hotel, motel, or retail store.
(f) (d)
"Eligible district" means
1 or more of the following:
(i) An industrial development district as that term is defined
in 1974 PA 198, MCL 207.551 to 207.572.
(ii) A renaissance zone as that term is defined in the Michigan
renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696.
(iii) An enterprise zone as that term is defined in the
enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123.
(iv) A brownfield redevelopment zone as that term is designated
under the brownfield redevelopment financing act, 1996 PA 381, MCL
125.2651 to 125.2672.
(v) An empowerment zone designated under subchapter U of
chapter 1 of the internal revenue code of 1986, 26 USC 1391 to
1397F.
(vi) An authority district or a development area as those terms
are defined in the tax increment finance authority act, 1980 PA
450, MCL 125.1801 to 125.1830.
(vii) An authority district as that term is defined in the
local development financing act, 1986 PA 281, MCL 125.2151 to
125.2174.
(viii) A downtown district or a development area as those terms
are defined in 1975 PA 197, MCL 125.1651 to 125.1681.
(ix) An aerotropolis development area.
(g) (e)
"Eligible distressed
area" means 1 of the following:
(i) That term as defined in section 11 of the state housing
development authority act of 1966, 1966 PA 346, MCL 125.1411.
(ii) An area that contains an eligible business as described in
section 8(5)(b)(ii) of the Michigan economic growth authority act,
1995 PA 24, MCL 207.808.
(iii) A local development financing authority district that
contains an aerotropolis development area.
(h) (f)
"Eligible local assessing
district" means a city,
village, or township that contains an eligible distressed area or
that is a party to an intergovernmental agreement under the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512, the metropolitan councils act, 1989 PA 292, MCL 124.651 to
124.729, or 1951 PA 35, MCL 124.1 to 124.13, creating an
aerotropolis development corporation.
(i) (g)
"Existing eligible
business" means an eligible
business identified in a resolution adopted under subsection (1)
for which an exemption has been granted under this section.
(j) "Local development financing authority district" means an
authority district as defined in the local development financing
authority act, 1986 PA 281, MCL 125.2151 to 125.2174.
(k) (h)
"New personal property"
means personal property that
was not previously subject to tax under this act and that is placed
in an eligible district after a resolution under subsection (1) is
approved. by
the eligible local assessing district. As used in this
subdivision, for exemptions approved by the state tax commission
under subsection (3) after April 30, 1999, new personal property
does not include buildings described in section 14(6) and personal
property described in section 8(h), (i), and (j).
(l) "Qualified aerotropolis business" means an air-commerce
linked business, a supply chain business, or a business needing to
be physically located near an airport for business purposes that
has been approved by the aerotropolis development corporation and
has been certified by the president of the Michigan strategic fund.
A supply chain business includes, but is not limited to, a business
that provides value to customers through applying an integrated
approach to planning, implementing, and controlling the flow of
information, materials, and services from initiation of product
concept and development through and including the distribution of
the finished product to the end customer, including, but not
limited to, procurement, manufacturing, technology, distribution,
warehousing, marketing, logistics, transportation, or related
value-added processes and activities, including related corporate
offices. A qualified aerotropolis business does not include a
casino, retail establishment, professional sports stadium, or that
portion of a qualified aerotropolis business used exclusively for
retail sales. As used in this subdivision, "casino" means a casino
regulated by this state pursuant to the Michigan gaming control and
revenue act, 1996 IL 1, MCL 432.201 to 432.226, and all property
associated or affiliated with the operation of a casino, including,
but not limited to, a parking lot, hotel, motel, or retail store.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 94th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 6502(request no.
07377'08 **).
(b) Senate Bill No.____ or House Bill No. 6503(request no.
07781'08 **).
(c) Senate Bill No.____ or House Bill No. 6504(request no.
07806'08 **).
(d) Senate Bill No.____ or House Bill No. 6506(request no.
08280'08 *).
(e) Senate Bill No.____ or House Bill No. 6507(request no.
08281'08 *).
(f) Senate Bill No.____ or House Bill No. 6508(request no.
08282'08 *).
(g) Senate Bill No.____ or House Bill No. 6509(request no.
08283'08 *).
(h) Senate Bill No.____ or House Bill No. 6510(request no.
08284'08 *).
(i) Senate Bill No.____ or House Bill No. 6511(request no.
08285'08 *).