November 10, 2015, Introduced by Senators HILDENBRAND, SCHUITMAKER and MACGREGOR and referred to the Committee on Michigan Competitiveness.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 19 and 22 (MCL 211.19 and 211.22), section 19
as amended by 2014 PA 87 and section 22 as amended by 2013 PA 153,
and by adding section 9p.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9p. (1) Beginning December 31, 2015, eligible data center
property for which an exemption has been properly claimed under
this section is exempt from the collection of taxes under this act.
(2) An owner of eligible data center property shall claim the
exemption under this section by annually filing an affidavit with
the local tax collecting unit in which the eligible data center
property is located not later than December 31 in each tax year.
The affidavit shall be in a form prescribed by the state tax
commission and shall include any address where any property owned
by, leased to, or in the possession of that owner and any
affiliated colocated business is located within that local tax
collecting unit.
(3) If an affidavit claiming the exemption under this section
is filed as provided in subsection (2), the owner of that eligible
data center property is not required to also file a statement under
section 19 in that tax year.
(4) A person who claims an exemption for eligible data center
property under this section shall maintain books and records and
shall provide access to those books and records as provided in
section 22.
(5) If the assessor of the local tax collecting unit believes
that property for which an affidavit claiming an exemption is filed
under subsection (2) is not eligible data center property, the
assessor may deny that claim for exemption by notifying the person
that filed the affidavit in writing of the reason for the denial
and advising the person that the denial may be appealed to the
board of review under section 30 or 53b during that tax year. The
assessor may deny a claim for exemption under this subsection for
the current year only. If the assessor denies a claim for
exemption, the assessor shall remove the exemption of that property
and 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.
(6) If a person fraudulently claims an exemption for property
under this section, that person is subject to the penalties
provided for in section 21(2).
(7) As used in this section:
(a) "Colocated business" means a person that enters into a
contract with a data center to use or occupy all or part of the
data center for the purpose described in subdivision (c).
(b) "Commercial personal property" means personal property
that is classified as commercial personal property under section
34c or would be classified as commercial personal property under
section 34c if not exempt from the collection of taxes under this
act under this section.
(c) "Data center" means 1 or more buildings located at 1 or
more physical locations in this state that are owned or operated by
an entity whose primary business is owning, operating, managing, or
maintaining a group of networked computers for the purpose of
centralizing the storage, management, and dissemination of data or
information pertaining to 1 or more businesses. The term includes
any modular or preassembled components, associated
telecommunications and storage systems, and, if the data center
includes more than 1 building or physical location, any network or
connection between those buildings or physical locations.
(d) "Eligible data center property" means property that meets
all of the following conditions:
(i) Is industrial personal property or commercial personal
property, or is a fixture on or appurtenance to land.
(ii) Is directly used to operate, maintain, manage, or support
the business of a data center or a colocated business.
(e) "Fixture on or appurtenance to land" means those terms as
used in section 2.
(f) "Industrial personal property" means personal property
that is classified as industrial personal property under section
34c or would be classified as industrial personal property under
section 34c if not exempt from the collection of taxes under this
act under this section.
Sec. 19. (1) A supervisor or other assessing officer, as soon
as possible after entering upon the duties of his or her office or
as required under the provisions of any charter that makes special
provisions for the assessment of property, shall ascertain the
taxable property in his or her assessing district, the person to
whom it should be assessed, and that person's residence.
(2)
Except as otherwise provided in section 9m, 9n, or 9o, or
9p, the supervisor or other assessing officer shall require any
person whom he or she believes has personal property in their
possession to make a statement of all the personal property of that
person whether owned by that person or held for the use of another
to be completed and delivered to the supervisor or assessor on or
before February 20 of each year. A notice the supervisor or other
assessing officer provides regarding that statement shall also do
all of the following:
(a) Notify the person to whom such notice is given of the
exemptions available under sections 9m, 9n, and 9o.
(b) Explain where information about those exemptions, the
forms and requirements for claiming those exemptions, and the forms
for the statement otherwise required under this section are
available.
(c) Be sent or delivered by not later than January 10 of each
year.
(3) If a supervisor, an assessing officer, a county tax or
equalization department provided for in section 34, or the state
tax commission considers it necessary to require from any person a
statement of real property assessable to that person, it shall
notify the person, and that person shall submit the statement.
(4) A local tax collecting unit may provide for the electronic
filing of the statement required under subsection (2) or (3).
(5) A statement under subsection (2) or (3) shall be in a form
prescribed by the state tax commission. If a local tax collecting
unit has provided for electronic filing of the statement under
subsection (4), the filing format shall be prescribed by the state
tax commission. The state tax commission shall not prescribe more
than 1 format for electronically filing a statement under
subsection (2) or more than 1 format for electronically filing a
statement under subsection (3).
(6) A statement under subsection (2) or (3) shall be signed
manually, by facsimile, or electronically. A supervisor or assessor
shall not require that a statement required under subsection (2) or
(3) be filed before February 20 of each year.
(7) A supervisor or assessor shall not accept a statement
under subsection (2) or (3) as final or sufficient if that
statement is not in the proper form or does not contain a manual,
facsimile, or electronic signature. A supervisor or assessor shall
preserve a statement that is not in the proper form or is not
signed as in other cases, and that statement may be used to make
the assessment and as evidence in any proceeding regarding the
assessment of the person furnishing that statement.
(8) An electronic or facsimile signature shall be accepted by
a local tax collecting unit using a procedure prescribed by the
state tax commission.
(9) A statement under subsection (2) for 2015 shall include a
schedule of when any personal property included in the statement
will become eligible for exemption under section 9m or 9n. For 2015
statements under subsection (2) that identify property eligible for
exemption under section 9m or 9n, a supervisor or assessor shall
provide to the department of treasury by June 1, 2015 a copy of the
statement, or the information on the statement, as prescribed by
the department of treasury. The department of treasury's use of a
statement, or information on a statement, provided under this
subsection is subject to section 28(1)(f) of 1941 PA 122, MCL
205.28.
Sec. 22. (1) If a supervisor, assessing officer, member of the
state tax commission, or director or deputy director of the county
tax or equalization department is satisfied that a statement
required under section 19 is incorrect, or if a statement required
under section 19 cannot be obtained from the person, firm, or
corporation whose property is assessed, a supervisor, assessing
officer, member of the state tax commission, or director or deputy
director of the county tax or equalization department may examine,
under oath to be administered by the supervisor, assessing officer,
member of the state tax commission, or director or deputy director
of the county tax or equalization department, any person he or she
believes has knowledge of the amount or value of any property
owned, held, or controlled by the person neglecting, refusing, or
omitting to be examined or to furnish the statement required under
section 19.
(2) A person who files an affidavit claiming an exemption for
personal property under section 9o shall maintain adequate books
and records relating to the description; the date of purchase,
lease, or acquisition; and the purchase price, lease amount, or
value of all industrial personal property and commercial personal
property owned by, leased by, or in the possession of that person
or a related entity for 4 years after filing an affidavit claiming
the exemption. A person who files an affidavit claiming an
exemption for personal property under section 9o shall provide
access to the books and records relating to the description; the
date of purchase, lease, or acquisition; and the purchase price,
lease amount, or value of all industrial personal property and
commercial personal property owned by, leased by, or in the
possession of that person or a related entity if requested by the
assessor of the local tax collecting unit, county equalization
department, or department of treasury for 4 years immediately
succeeding the year in which that person files an affidavit
claiming the exemption.
(3) A person who files an affidavit claiming an exemption for
personal property under section 9m or 9n shall maintain adequate
books and records relating to the description; the date of
purchase, lease, or acquisition; and the purchase price, lease
amount, or value of that personal property; the customary
industrial use for that personal property; and the asset
classification grouping of that personal property as applied in
mass appraisal techniques for assessing purposes until that
personal property is no longer eligible for exemption under section
9m or 9n. A person who claims an exemption for personal property
under section 9m or 9n shall provide access to the books and
records relating to the description; the date of purchase, lease,
or acquisition; and the purchase price, lease amount, or value of
that personal property; the customary industrial use for that
personal property; and the asset classification grouping of that
personal property as applied in mass appraisal techniques for
assessing purposes if requested by the assessor of the local tax
collecting unit, county equalization department, or department of
treasury in any year in which that person claims an exemption for
that personal property under section 9m or 9n.
(4) A person who files an affidavit claiming an exemption for
property under section 9p shall maintain adequate books and records
relating to the description; the date of purchase, lease, or
acquisition; and the purchase price, lease amount, or value of all
property owned by, leased by, or in the possession of that person
for 4 years after filing an affidavit claiming the exemption. A
person who files an affidavit claiming an exemption for property
under section 9p shall provide access to the books and records
relating to the description; the date of purchase, lease, or
acquisition; and the purchase price, lease amount, or value of all
property owned by, leased by, or in the possession of that person
if requested by the assessor of the local tax collecting unit,
county equalization department, or department of treasury for 4
years immediately succeeding the year in which that person files an
affidavit claiming the exemption.
(5) (4)
The assessor of a local tax
collecting unit shall
preserve all affidavits claiming an exemption for personal property
filed
under sections 9m, 9n, and 9o,
and 9p for not less than 4
years after completion of the assessment roll for which the
affidavits are filed.
(6) (5)
A supervisor or assessing officer
is authorized to
assess to a person, firm, or corporation subject to assessment the
amount of real and personal property the supervisor or assessing
officer considers reasonable and just.