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• Introduced by Sen. Jud Gilbert (R) on December 3, 2003, to exempt for five years a "qualified start-up business" from the "city utility users tax." 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.
  • Referred to the Senate Economic Development, Small Business and Regulatory Reform Committee on December 3, 2003.
    • Reported in the Senate on December 17, 2003, with the recommendation that the bill pass.
• Passed 36 to 1 in the Senate on February 11, 2004, to exempt for five years a "qualified start-up business" from the "city utility users tax." 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, is not publicly traded, and did not have net income for two consecutive tax years. This does not necessarily apply only to new firms, and the proposed five year exemption is not necessarily the firm's first five years of operation.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on February 11, 2004.
  • Referred to the House Commerce Committee on February 11, 2004.
  • Referred to the House Tax Policy Committee on February 12, 2004.
  • Reported in the House on April 21, 2004, with the recommendation that the substitute (H-3) be adopted and that the bill then pass.
  • Substitute offered in the House on April 27, 2004, to exempt a "qualified start-up business" from paying property tax 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 substitute passed by voice vote in the House 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 by voice vote in the House on April 27, 2004.
• Passed 80 to 27 in the House on April 27, 2004, to exempt for five years a "qualified start-up business" from the "city utility users tax." 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, is not publicly traded, and did not have net income for two consecutive tax years. This does not necessarily apply only to new firms, and the proposed five year exemption is not necessarily the firm's first five years of operation.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on April 28, 2004.
• Passed 37 to 0 in the Senate on May 13, 2004.
  Who Voted "Yes" and Who Voted "No"
• Vetoed by Gov. Jennifer Granholm on May 28, 2004.