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• Introduced by Rep. Matt Milosch (R) on December 3, 2003, to exempt a "qualified start-up business" from paying property tax on real and personal property for five years. A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, and is not publicly traded. This does not necessarily apply only to new firms, and the five year exemption is not necessarily the firm's first five years of operation. The personal property tax is a tax on the tools and equipment that businesses use to provide goods and services. It is assessed and levied in the same manner as regular property taxes on real estate.
  • Referred to the House Tax Policy Committee on December 3, 2003.
  • Reported in the House on April 21, 2004, with the recommendation that the substitute (H-5) be adopted and that the bill then pass.
  • Substitute offered in the House on April 27, 2004, to replace the previous version of the bill with one that makes the tax break contingent on approval by the local government, and incorporates certain additional restrictions and requirements designed to more narrowly target the tax breaks at certain kinds of businesses, and make it harder for non-targeted firms to make themselves eligible by changing their business structure. The substitute passed in the House by voice vote on April 27, 2004.
  • Amendment offered by Rep. Lorence Wenke (R) on April 27, 2004, to tie-bar the bill to House Bill 5331, meaning this bill cannot become law unless that one does also. The amendment passed in the House by voice vote on April 27, 2004.
• Passed in the House (79 to 25) on April 27, 2004. [Vote Details and Comments]
• Received in the Senate on April 28, 2004.
  • Referred to the Senate Economic Development, Small Business and Regulatory Reform Committee on April 28, 2004.
  • Reported in the Senate on May 11, 2004, with the recommendation that the bill pass.
  • Amendment offered in the Senate on May 12, 2004, to clarify that the tax break only applies to property used in conducting business activities. The amendment passed in the Senate by voice vote on May 12, 2004.
• Passed in the Senate (37 to 0) on May 13, 2004, to exempt a "qualified start-up business" from paying property tax on real and personal property for five years. A "qualified start-up business" is defined as a firm that has fewer than 25 full-time equivalent employees, has annual sales of less than $1 million, has research and development expenses that make up at least 15-percent of its annual expenses, and is not publicly traded. This does not necessarily apply only to new firms, and the five year exemption is not necessarily the firm's first five years of operation. The personal property tax is a tax on the tools and equipment that businesses use to provide goods and services. It is assessed and levied in the same manner as regular property taxes on real estate. [Vote Details and Comments]
• Received in the House on May 13, 2004.
• Passed in the House (78 to 28) on May 18, 2004, to concur with the Senate-passed version of the bill. [Vote Details and Comments]
• Vetoed by Gov. Jennifer Granholm on May 28, 2004.