SB-1069, As Passed House, December 13, 2012

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1069

(As amended December 13, 2012)

     A bill to amend 1893 PA 206, entitled

"The general property tax act,"

(MCL 211.1 to 211.155) by adding section 9m.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 9m. (1) Beginning December 31, 2015 and each year

thereafter, qualified new personal property is exempt from the

collection of taxes under this act.

     (2) An owner of qualified new personal property shall claim

the exemption under this section by filing an affidavit with the

local tax collecting unit in which the qualified new personal

property is located and with the department of treasury not later

than [February 20], 2016. The affidavit shall be in a form prescribed by

the department of treasury. An owner of qualified new personal

property is only required to file the affidavit claiming the

Senate Bill No. 1069 (H-1) as amended December 13, 2012

exemption under this section in 2016.

     (3) If an affidavit claiming the exemption under this section

is filed in 2016 as provided in subsection (2), the owner of that

qualified new personal property is not required to also file a

statement under section 19 for that qualified new personal property

in 2016.

     (4) Beginning in 2017 and each year after 2017, an owner of

qualified new personal property is not required to file an

affidavit claiming the exemption under this section for qualified

new personal property and is not required to file a statement under

section 19 for that qualified new personal property. An owner of

qualified new personal property exempt under this section shall

provide documentation evidencing the date of purchase of that

qualified new personal property to the assessor of the local tax

collecting unit upon request.

     (5) As used in this section:

     (a) "Direct integrated support" means research and development

functions, testing and quality control functions, engineering

functions, [warehousing facilities that directly support the owner or

 lessee engaging in industrial processing and that store tangible personal property owned by that owner or lessee, and sorting and distribution centers that optimize transportation and use just-in-time inventory management and material handling for inputs to industrial processing.]

     (b) "Eligible manufacturing personal property" means all

personal property that is located on a parcel of real property if

that personal property is used more than 50% of the time in

industrial processing or in direct integrated support. The

percentage of use of personal property in industrial processing or

in direct integrated support shall be determined in the following

manner:

Senate Bill No. 1069 (H-1)as amended December 13, 2012

     (i) Multiply the true cash value of each individual item of

personal property located on that parcel of real property by its

percentage of use in industrial processing or in direct integrated

support.

     (ii) Add the result of the calculation under subparagraph (i)

for all personal property located on that parcel of real property.

     (iii) Divide the result of the calculation under subparagraph

(ii) by the total true cash value of all personal property located

on that parcel of real property.

     (c) "Industrial processing" means the conversion or

conditioning of tangible personal property by changing the form,

composition, quality, combination, or character of the property for

ultimate sale at retail or for use in the manufacturing of a

product to ultimately be sold at retail. Industrial processing does

not include the generation of electricity for sale.

     (d) "New personal property" means property that meets all of

the following conditions:

     (i) Before January 1, 2013, was not subject to or exempt from

the collection of taxes under this act, except inventory exempt

under section 9c, and was not in use or placed in service in this

state.

     (ii) Before January 1, 2013, was not in use or placed in

service outside of this state.

     (iii) Was initially purchased from the manufacturer, dealer,

distributor, or other vendor of new property after December 31,

[2012].

     (e) "Qualified new personal property" means property that

Senate Bill No. 1069 (H-1) as amended December 13, 2012

meets all of the following conditions:

     (i) Is eligible manufacturing personal property.

     (ii) Was new personal property after December 31, 2012.

[Enacting section 1. Section 9m of the general property tax act, 1893 PA 206, MCL 211.9m, as added by this amendatory act, is repealed if House Bill No. 6026 of the 96th Legislature is not approved by a majority of the qualified electors of this state voting on the question at an election to be held on the August regular election date in 2014.]