SB-0865, As Passed Senate, February 11, 2004                                

SUBSTITUTE FOR

SENATE BILL NO. 865

                                                                             A bill to amend 1953 PA 189, entitled                                             

"An act to provide for the taxation of lessees and users of                 

tax-exempt property,"                                                       

(MCL 211.181 to 211.182) by adding section 1a.                              

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 1a.  (1) For taxes levied after December 31, 2003,                     

2   except as otherwise provided in subsection (2), real and personal           

3   property of a qualified start-up business is exempt from the tax            

4   levied under this act for 5 years beginning on the December 31 in           

5   the year in which the qualified start-up business first claimed             

6   the credit under section 31a of the single business tax act, 1975           

7   PA 228, MCL 208.31a, or section 51f of the income tax act of                

8   1967, 1967 PA 281, MCL 206.51f.                                             

9   (2) Real and personal property of a qualified start-up                      

10  business is not exempt from collection of the following:                    

11      (a) A special assessment levied by the local tax collecting                 

1   unit in which the property is located.                                      

2       (b) Ad valorem property taxes specifically levied for the                   

3   payment of principal and interest of obligations approved by the            

4   electors or obligations pledging the unlimited taxing power of              

5   the local governmental unit.                                                

6       (c) A tax levied under section 705 or 1212 of the revised                   

7   school code, 1976 PA 451, MCL 380.705 and 380.1212.                         

8       (3) A qualified start-up business may claim the exemption                   

9   under subsection (1) by filing an affidavit claiming the                    

10  exemption with the assessor of the local tax collecting unit.               

11  The affidavit shall be in a form prescribed by the state tax                

12  commission.                                                                 

13      (4) As used in this section, "qualified start-up business"                  

14  means that term as defined in section 31a of the single business            

15  tax act, 1975 PA 228, MCL 208.31a.