Bill Text: MI SB0048 | 2019-2020 | 100th Legislature | Engrossed


Bill Title: Property tax; exemptions; alternative energy personal property; modify exemption. Amends sec. 9i of 1893 PA 206 (MCL 211.9i). TIE BAR WITH: SB 0047'19

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed) 2019-06-12 - Referred To Committee On Ways And Means [SB0048 Detail]

Download: Michigan-2019-SB0048-Engrossed.html

SB-0048, As Passed Senate, June 12, 2019

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 48

 

 

January 22, 2019, Introduced by Senators BARRETT, WOJNO and ALEXANDER and referred to the Committee on Finance.

 

 

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 9i (MCL 211.9i), as added by 2002 PA 549.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9i. (1) Alternative Subject to subsection (2),

 

alternative energy personal property is exempt from the collection

 

of taxes under this act as provided in this section.

 

     (2) If the Michigan next energy authority certifies

 

alternative energy personal property as eligible for the exemption

 

under this section as provided in the Michigan next energy

 

authority act, the Michigan next energy authority shall forward a

 

copy of that certification to all of the following:

 


     (a) The secretary of the local school district in which the

 

alternative energy personal property is located.

 

     (b) The treasurer of the local tax collecting unit in which

 

the alternative energy personal property is located.

 

     (3) Within 60 days after receipt of the certification of

 

alternative energy personal property under subsection (2), the

 

school board for the local school district in which the alternative

 

energy personal property is located, with the written concurrence

 

of the superintendent of the local school district, may adopt a

 

resolution to not exempt that alternative energy personal property

 

from a tax levied in that local school district under section 1212

 

of the revised school code, 1976 PA 451, MCL 380.1212, or a tax

 

levied under the revised school code, 1976 PA 451, MCL 380.1 to

 

380.1852, to retire outstanding bonded indebtedness. If a

 

resolution is adopted under this subsection, a copy of the

 

resolution shall be forwarded to the Michigan next energy

 

authority, to the treasurer of the local tax collecting unit, and

 

to the state treasurer. If a resolution is not adopted under this

 

subsection, that alternative energy personal property is exempt

 

from a tax levied in that local school district under section 1212

 

of the revised school code, 1976 PA 451, MCL 380.1212, or a tax

 

levied under the revised school code, 1976 PA 451, MCL 380.1 to

 

380.1852, to retire outstanding bonded indebtedness, for the period

 

provided in subsection (5).

 

     (4) Within 60 days after receipt of the certification of

 

alternative energy personal property under subsection (2), the

 

governing body of the local tax collecting unit in which the


alternative energy personal property is located may adopt a

 

resolution to not exempt that alternative energy personal property

 

from the taxes collected in that local tax collecting unit, except

 

taxes collected under sections 1211 and 1212 of the revised school

 

code, 1976 PA 451, MCL 380.1211 and 380.1212, a tax levied under

 

the revised school code, 1976 PA 451, MCL 380.1 to 380.1852, to

 

retire outstanding bonded indebtedness, or the tax levied by this

 

state under the state education tax act, 1993 PA 331, MCL 211.901

 

to 211.906. The clerk of the local tax collecting unit shall notify

 

in writing the assessor of the local tax collecting unit in which

 

the alternative energy personal property is located and the

 

legislative body of each taxing unit that levies ad valorem

 

property taxes in that local tax collecting unit in which the

 

alternative energy personal property is located. Notice of the

 

meeting at which the resolution will be considered shall be

 

provided as required under the open meetings act, 1976 PA 267, MCL

 

15.261 to 15.275. Before acting on the resolution, the governing

 

body of the local tax collecting unit shall afford the assessor and

 

a representative of the affected taxing units an opportunity for a

 

hearing. If a resolution is adopted under this subsection, a copy

 

of the resolution shall be forwarded to the Michigan next energy

 

authority and to the state treasurer. If a resolution is not

 

adopted under this subsection, that alternative energy personal

 

property is exempt from the taxes collected in that local tax

 

collecting unit for the period provided in subsection (5), except

 

as otherwise provided in this section.

 

     (2) (5) The exemption under this section applies to taxes


levied the following:

 

     (a) Taxes levied on alternative energy personal property after

 

December 31, 2002 and before January 1, 2013.

 

     (b) Taxes levied on that category of alternative energy

 

personal property described in subsection (3)(a)(i) after the

 

effective date of the amendatory act that added this subdivision,

 

without regard to ownership of the alternative energy personal

 

property, provided that all of the following conditions are met:

 

     (i) The alternative energy personal property has a generating

 

capacity of not more than 150 kilowatts and is used solely to

 

offset all or a portion of the commercial or industrial energy

 

usage of the person upon whose real property the alternative energy

 

personal property is located.

 

     (ii) If installed after the effective date of the amendatory

 

act that added this subparagraph, the alternative energy personal

 

property has a true cash value that, when combined with the true

 

cash value of all personal property exempt under section 9o as

 

eligible personal property of the person claiming the exemption

 

under this section or a related entity, equals less than

 

$80,000.00.

 

     (3) (6) As used in this section:

 

     (a) "Alternative energy personal property" means all of the

 

following:

 

     (i) An alternative energy system.

 

     (ii) An alternative energy vehicle.

 

     (iii) All personal property of an alternative energy

 

technology business.


     (iv) The personal property of a business that is not an

 

alternative energy technology business that is used solely for the

 

purpose of researching, developing, or manufacturing an alternative

 

energy technology.

 

     (b) "Alternative energy system", "alternative energy vehicle",

 

"alternative energy technology", and "alternative energy technology

 

business" mean those terms as defined in the Michigan next energy

 

authority act, 2002 PA 593, MCL 207.821 to 207.827.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 47

 

of the 100th Legislature is enacted into law.

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