HB-4972, As Passed House, August 31, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 4972

     A bill to amend 1975 PA 228, entitled

"Single business tax act,"

(MCL 208.1 to 208.145) by adding section 35d.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 35d. (1) For tax years beginning on and after January 1,

2006 and for which subsection (2) does not apply, a person may

claim a credit against the tax imposed by this act equal to the

following percentages of the property taxes paid in the tax year by

the person on industrial personal property:

     (a) For the tax year following the calendar year in which the

tangible personal property is initially sold at retail and first

purchased from a manufacturer or a dealer or distributor of the

original manufacturer by the taxpayer, the taxpayer may claim the

following percentage of the property taxes paid in the tax year on

the tangible personal property for that year:

     (i) If the tangible personal property is first purchased in

calendar year 2006 or 2007, 50%.

     (ii) If the tangible personal property is first purchased in

calendar year 2008 or after calendar year 2008, 20%.

     (b) For the tax year immediately following the tax year in

subdivision (a), the taxpayer may claim the following percentages

of the property taxes paid by the taxpayer in the tax year on the

tangible personal property:

     (i) If the tangible personal property was first purchased in

calendar year 2006 or 2007, 30%.

     (ii) If the tangible personal property was first purchased in

calendar year 2008 or after calendar year 2008, 20%.

     (c) For the tax year immediately following the tax year in

subdivision (b), the taxpayer may claim the following percentages

of the property taxes paid by the taxpayer in the tax year on the

tangible personal property:

     (i) If the tangible personal property was first purchased in

calendar year 2006 or 2007, 25%.

     (ii) If the tangible personal property was first purchased in

calendar year 2008 or after calendar year 2008, 20%.

     (d) Except as otherwise provided in this subsection, a

taxpayer may claim a 15% credit for property taxes paid in calendar

years 2006, 2007, and 2008 on tangible personal property and a 20%

credit for property taxes paid in calendar year 2009 and after

calendar year 2009.

     (2) For tax years after the calendar year in which the fourth

reduction under section 31(7) was made, if the revenue estimating

conference that meets in the May after the calendar year in which

the fourth reduction under section 31(7) was made, as provided in

section 367b of the management and budget act, 1984 PA 431, MCL

18.1367b, determines that the amount estimated by that revenue

estimating conference for revenues under this act for that state

fiscal year exceeds the revenues under this act for the state

fiscal year immediately preceding the state fiscal year in which

the revenue estimating conference meets by $80,000,000.00 or more,

a taxpayer may claim a credit equal to the following percentages of

the property taxes paid on tangible personal property purchased in

that calendar year, in the tax year immediately following the

calendar year in which the tangible personal property was

purchased:

     (a) For the tax year following the calendar year in which the

tangible personal property is initially sold at retail and first

purchased from a manufacturer or a dealer or distributor of the

original manufacturer by the taxpayer, 50%.

     (b) For the tax year immediately following the tax year in

subdivision (a), 30%.

     (c) For the tax year immediately following the tax year in

subdivision (b), 25%.

     (3) A person that is not otherwise required to file a return

under this act may claim the credit under this section.

     (4) To qualify for the credits under this section for an item

of tangible personal property, a person that is otherwise eligible

to claim the credit allowed under this section shall file within

the time required the statement of personal property described in

section 19 of the general property tax act, 1893 PA 206, MCL

211.19, for items of tangible personal property that are classified

as industrial personal property for the location at which the

tangible personal property that is the basis of the credit allowed

under this section is located.

     (5) If the credit allowed under this section exceeds the tax

liability of the person for the tax year or if person does not have

a tax liability under this act for the tax year, the excess or the

amount of the credit shall be refunded or paid to the person. The

state treasurer shall establish a reserve account in the department

to fund and provide for payment of the amount of refunds or

payments for credits under this section that are attributable to

the fiscal years ending in the tax years for which credits are

claimed.

     (6) As used in this section:

     (a) "First purchased" means when tangible personal property

was initially sold at retail and first bought from a manufacturer

or a dealer or distributor of the original manufacturer.

     (b) "Industrial personal property" means personal property

classified as industrial personal property under section 34c of the

general property tax act, 1893 PA 206, MCL 211.34c.

     (c) "Property taxes" means any of the following:

     (i) Taxes levied under the general property tax act, 1893 PA

206, MCL 211.1 to 211.157.

     (ii) Taxes levied under 1974 PA 198, MCL 207.551 to 207.572.

     (iii) Taxes levied under the obsolete property rehabilitation

act, 2000 PA 146, MCL 125.2781 to 125.2797.

     (iv) Any payments made by the taxpayer pursuant to a contract

with the Michigan strategic fund in connection with the creation of

a renaissance zone under the Michigan renaissance zone act, 1996 PA

376, MCL 125.2681 to 125.2696, to the extent that those payments

are made by the taxpayer to reimburse all taxing units for property

taxes that would otherwise be exempt under section 7ff of the

general property tax act, 1893 PA 206, MCL 211.7ff.

     Enacting section 1.  This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) House Bill No. 4973.

     (b) House Bill No. 4980.

     (c) House Bill No. 5095.

     (d) House Bill No. 5096.

     (e) House Bill No. 5097.

     (f) House Bill No. 5098.

     (g) House Bill No. 5106.

     (h) House Bill No. 5107.

     (i) House Bill No. 5108.