February 13, 2014, Introduced by Senators CASWELL, BOOHER, GREEN, WALKER and PAPPAGEORGE and referred to the Committee on Finance.
A bill to provide for the exemption of certain property from
certain taxes; to levy and collect a specific tax upon the owners
of certain property; to provide for the disposition of the tax; to
prescribe the powers and duties of certain local government
officials; and to provide penalties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"hydroponics and aquaculture production facilities specific tax
act".
Sec. 2. As used in this act:
(a) "Aquaculture" means the commercial husbandry of
aquaculture species, including, but not limited to, culturing,
producing, growing, propagating, and harvesting aquaculture
products under any applicable permits or registration.
(b) "Aquaculture production facility" means an indoor
aquaculture production operation using aquaculture techniques or
practices for growing aquaculture species. An aquaculture
production facility includes the pumps, tanks, controls,
application systems, indoor recirculating systems, and related
infrastructure required to grow aquaculture species using
aquaculture techniques or practices. An aquaculture production
facility includes any warehouse or shipping area integrated into
the aquaculture production operation. An aquaculture production
facility includes offices integrated into the aquaculture
production operation if the taxable value of the offices is less
than 50% of the combined taxable value of the aquaculture
production facility and the offices.
(c) "Commission" means the state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(d) "Hydroponics" means a system in which water-soluble
nutrients are placed in intimate contact with a plant's root
system, being grown in an inert supportive medium that supplies
physical support for the roots but that does not add or subtract
plant nutrients.
(e) "Hydroponics production facility" means an indoor
agriculture production operation using hydroponics techniques or
practices for growing plants produced by agriculture that are
useful to human beings, including, but not limited to, forages,
field crops, sod, berries, herbs, fruits, vegetables, flowers,
seeds, and nursery stock. Hydroponics production facility does not
include an indoor agriculture production operation for growing
plants that are illegal under federal law. A hydroponics production
facility includes, but is not limited to, the pumps, tanks,
controls, application systems, and related infrastructure required
to grow agricultural crops using hydroponics techniques or
practices. A hydroponics production facility includes any warehouse
or shipping area integrated into the hydroponics production
facility operation. A hydroponics production facility includes
offices integrated into the indoor agriculture production operation
if the taxable value of the offices is less than 50% of the
combined taxable value of the hydroponics production facility and
the offices.
(f) "Taxable value" means the taxable value as determined
under section 27a of the general property tax act, 1893 PA 206, MCL
211.27a.
Sec. 3. For taxes levied after December 31, 2013, a
hydroponics production facility or an aquaculture production
facility is exempt from ad valorem property taxes collected under
the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, as
provided under section 7uu of the general property tax act, 1893 PA
206, MCL 211.7uu.
Sec. 4. The assessor of each local tax collecting unit in
which there is a hydroponics production facility or an aquaculture
production facility shall determine annually as of December 31 the
value and taxable value of each hydroponics production facility or
aquaculture production facility located in that local tax
collecting unit.
Sec. 5. (1) There is levied upon the owner of every
hydroponics production facility or aquaculture production facility
a specific tax to be known as the hydroponics and aquaculture
production facilities specific tax.
(2) The amount of the hydroponics and aquaculture production
facilities specific tax in each year shall be determined as
follows:
(a) Multiply the number of mills that would be assessed in the
local tax collecting unit if the property were subject to the
collection of taxes under the general property tax act, 1893 PA
206, MCL 211.1 to 211.155, and if the property was exempt as
provided under section 7cc of the general property tax act, 1893 PA
206, MCL 211.7cc, by the hydroponics production facility's or
aquaculture production facility's taxable value.
(b) Multiply the result of the calculation in subdivision (a)
by .25.
(c) If a new millage is approved in the local tax collecting
unit in which a hydroponics production facility or aquaculture
production facility is located after the effective date of this
act, multiply the number of mills that were approved that would be
assessed if the hydroponics production facility or aquaculture
production facility were subject to the collection of taxes under
the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, by
the hydroponics production facility's or aquaculture production
facility's taxable value. Repeat this calculation for each
individual millage approved in the local tax collecting unit after
the effective date of this act.
(d) Add the result of the calculation under subdivision (b)
and the result of all calculations under subdivision (c).
(3) The hydroponics and aquaculture production facilities
property specific tax is an annual tax, payable at the same times,
in the same installments, and to the same collecting officer or
officers as taxes collected under the general property tax act,
1893 PA 206, MCL 211.1 to 211.155.
(4) The collecting officer or officers shall disburse the
hydroponics and aquaculture production facilities property specific
tax to and among this state and cities, townships, villages, school
districts, counties, or other taxing units, 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 211.155.
(5) The collecting officer or officers shall send a copy of
the amount of disbursement made to each taxing unit under this
section to the commission on a form provided by the commission.
Sec. 6. Unpaid hydroponics and aquaculture production
facilities specific taxes are subject to forfeiture, foreclosure,
and sale in the same manner and at the same time as taxes returned
as delinquent under the general property tax act, 1893 PA 206, MCL
211.1 to 211.155.
Enacting section 1. This act does not take effect unless
Senate Bill No.786 of
the 97th Legislature is enacted into law.