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HB-4972, As Passed Senate, October 25, 2005

SENATE 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:

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

2 1, 2006 and for which subsection (2) does not apply, a person may

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

4 following percentages of the property taxes paid in the specified

5 years by the person on industrial personal property purchased in

6 the following years:

7 Tax Tax Tax Tax Tax Tax

8 Year Property Year Year Year Year Year Year

1 Purchased 2006 2007 2008 2009 2010 2011 and after

2 Prior to 2001 10% 10% 10% 10% 10% 10%

3 2001 20% 10% 10% 10% 10% 10%

4 2002 20% 20% 10% 10% 10% 10%

5 2003 20% 20% 20% 10% 10% 10%

6 2004 20% 20% 20% 20% 10% 10%

7 2005 20% 20% 20% 20% 20% 10%

8 2006 ---- 45% 30% 25% 20% 20%

9 2007 ---- ---- 45% 30% 25% 20%

10 2008 ---- ---- ---- 40% 30% 25%

11 2009 ---- ---- ---- ---- 30% 25%

12 2010 and after ---- ---- ---- ---- ---- 20%

13 (2) For tax years that begin after the January 1 after the

14 first time after December 31, 2006 that the criteria under

15 section 74 are considered to have been met and each tax year

16 after that, a person may claim a credit against the tax imposed

17 by this act equal to the following percentages of the property

18 taxes paid in the specified tax year by the person on industrial

19 personal property purchased in the following years:

20 Year Property Year 4

21 Purchased Year 1 Year 2 Year 3 and After

22 Prior to 2001 10% 10% 10% 10%

23 2001 10% 10% 10% 10%

24 2002 10% 10% 10% 10%

25 2003 25% 10% 10% 10%

26 2004 25% 25% 10% 10%

1 2005 25% 30% 25% 10%

2 2006 40% 40% 30% 20%

3 2007 60% 50% 50% 40%

4 2008 ---- 60% 50% 40%

5 2009 ---- ---- 50% 40%

6 2010 and after ---- ---- ---- 40%

7 (3) A taxpayer shall not claim a credit calculated under

8 subsection (1) after subsection (2) is in effect.

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

10 item of tangible personal property, a person that is otherwise

11 eligible to claim the credit allowed under this section shall

12 file within the time required the statement of personal property

13 described in section 19 of the general property tax act, 1893 PA

14 206, MCL 211.19, for items of tangible personal property that are

15 classified as industrial personal property for the location at

16 which the tangible personal property that is the basis of the

17 credit allowed under this section is located.

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

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

20 have a tax liability under this act for the tax year, the excess

21 or the amount of the credit shall not be refunded or paid to the

22 person and shall not be carried forward.

23 (6) As used in this section:

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

25 was initially sold at retail and first bought from a manufacturer

26 or a dealer or distributor of the original manufacturer.

1 (b) "Industrial personal property" means personal property

2 classified as industrial personal property under section 34c of

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

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

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

6 206, MCL 211.1 to 211.157.

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

8 (iii) Taxes levied under the obsolete property rehabilitation

9 act, 2000 PA 146, MCL 125.2781 to 125.2797.

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

11 with the Michigan strategic fund in connection with the creation

12 of a renaissance zone under the Michigan renaissance zone act,

13 1996 PA 376, MCL 125.2681 to 125.2696, to the extent that those

14 payments are made by the taxpayer to reimburse all taxing units

15 for property taxes that would otherwise be exempt under section

16 7ff of the general property tax act, 1893 PA 206, MCL 211.7ff.

17 Enacting section 1. This amendatory act does not take

18 effect unless all of the following bills of the 93rd Legislature

19 are enacted into law:

20 (a) House Bill No. 4980.

21 (b) House Bill No. 5095.

22 (c) House Bill No. 5096.

23 (d) House Bill No. 5097.

24 (e) House Bill No. 5098.

25 (f) House Bill No. 5106.

26 (g) House Bill No. 5107.

27 (h) House Bill No. 5108.