November 6, 2008, Introduced by Reps. Mayes, Accavitti, Sheltrown, Brown, Polidori, Espinoza, Melton, Hammel, Clemente, Angerer, Warren, Meisner, LeBlanc, Corriveau, Coulouris, Alma Smith, Lahti, Byrnes, Robert Jones, Johnson, Spade, Meadows, Condino, Cushingberry, Byrum, Sak, Constan, Lindberg, McDowell, Jackson, Donigan, Bauer, Ebli, Dean and Simpson and referred to the Committee on Energy and Technology.
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.
(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 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, or water energy conversion device which meets all
standards for a solar, wind, 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.
(c) "Small-scale" means having a generating capacity of not
more than 50 kilowatts.
(d) "Solar, wind, 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, 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.