Introduced by Sen. Cameron Brown (R) on March 2, 2006, to authorize property tax abatements for property used for warehousing, distribution, or logistic purposes, or as a communication service center, if the facility is at least 100,000 square feet. This is essentially the same bill as Senate Bill 175, which was vetoed by Gov. Jennifer Granholm. This would allow a proposed Wal-Mart warehouse near Mt. Pleasant to qualify for a tax break.
Referred to the Senate Economic Development, Small Business and Regulatory Reform Committee on March 2, 2006.
Reported in the Senate on April 18, 2006, with the recommendation that the bill pass.
Amendment offered by Sen. Gilda Jacobs (D) on April 20, 2006, to narrow the scope of the bill to facilities in villages within 15 miles of the state border (such as Caspian, Michigan). The amendment failed 13 to 23 in the Senate on April 20, 2006. Who Voted "Yes" and Who Voted "No"
Amendment offered by Sen. Mark Schauer (D) on April 20, 2006, to narrow the scope of the bill to facilities within 15 miles of the state border. The amendment failed 15 to 21 in the Senate on April 20, 2006. Who Voted "Yes" and Who Voted "No"
Referred to the House Commerce Committee on April 25, 2006.
Reported in the House on May 16, 2006, without amendment and with the recommendation that the bill pass.
Substitute offered by Rep. Andy Dillon (D) on December 14, 2006, to replace the previous version of the bill with one that does not contain the original provisions that would have allowed a proposed Wal-Mart warehouse near Mt. Pleasant to qualify for a tax break, but instead extends a tax break for a particular facility in Gibraltar. The substitute passed by voice vote in the House on December 14, 2006.
Received in the Senate on December 14, 2006, to extend a personal property tax break for a certain company in Gibraltar, notwithstanding the fact that it had previously been revoked by the state tax commission on certain procedural grounds. Passed 35 to 0 in the Senate on December 14, 2006. Who Voted "Yes" and Who Voted "No"
Signed by Gov. Jennifer Granholm on December 28, 2006.
1) Sen. Schauer's " journal statement" by Admin003 on April 22, 2006 Senator Schauer's statement is as follows:
The sponsors of this bill and those who voted against the amendments that were offered would have this state reduce its School Aid Fund by giving broad, unfocused tax giveaways to all commercial facilities that meet this definition. I hope that you've read this bill. I'm sure you have and realize that the current law, which became effective December 16th in an amendment that I believe the sponsor of this bill offered to help this one community in his district, would allow these commercial properties to qualify under PA 196--again the industrial facilities exemption certificate if at least 90percent of the property, excluding surrounding green space, was used for warehousing, distribution, and logistics to provide food for institutional, restaurant, hospital, or hotel customers; at least 90 percent.
This bill removes this. It not only removes the 90 percent requirement, but there is virtually no requirement at all. In fact, I'll find that. It just says that in striking that 90 percent requirement, it just says "is used for." So any percent--pick a percent--would have to meet that requirement. So really what we are saying with this bill is that any kind of commercial facility that has any percentage of warehousing would qualify for this abatement. The idea, I guess, is that those proponents want to replace lost manufacturing jobs with these kinds of warehousing jobs or other commercial jobs. Not the best idea in terms of long-range planning. It's certainly bad tax policy and one that would put our schools at risk.
2) Sen. Garcia's "journal statement" by Admin003 on April 22, 2006 Senator Garcia's statement is as follows:
With the state losing jobs by the thousands, it's imperative that we work together in a bipartisan manner to bring jobs to Michigan and to help create jobs in Michigan. The Governor has said that she would go anywhere, do anything to bring jobs to Michigan. It is my hope that she will keep her promise to do so and sign this piece of legislation.
It was recently reported that Michigan ranks No.5 in the nation in home foreclosures, which means people don't have jobs to keep paying for their homes. They are going to leave this state. They're going to leave this state in dire economic straits and continue to foster a situation and economic climate here in Michigan where it's just going to get even worse.
So it is my hope that the Governor will do anything and will specifically sign this piece of legislation which will create jobs in Michigan and will help real people.
3) Sen. Brown's "journal statement" by Admin003 on April 22, 2006 Senator Brown's statement is as follows:
To the Senator from the 14th District, here are my frustrations. We have people out of work. To the Senator from the 19th District, this bill will create jobs and that is the larger point. To the Senator from the 8th District, the only smiley face associated with this legislation is the smiling faces of children whose parents could possibly have a job as a result of this legislation.
Madam President, the main challenge confronting this state is the lack of jobs. The best way to meet this challenge is to create jobs. The best way to create jobs is to give locals the tools they need to compete not just against India, but Indiana.
Our state's unemployment rate, and there's a litany that you're familiar with, but our state's unemployment rate--and we need to hear this--went up from 6.6 percent in February to 6.8 percent in March. Unemployment in Detroit area went up another 1/2 percent to 7.2 percent. The national unemployment rate is 4.7 percent. The gap between Michigan and the rest of the nation is growing, not shrinking. Hurricane-ravaged Louisiana's unemployment rate, as high as 12 percent in the months after the storm, is now at 4.3 percent. According to The Detroit News, Michigan has lost 1 of 3 manufacturing jobs since 1999 and 20,000 since March of last year alone.
Just yesterday--yesterday afternoon--Klein Tools of Jonesville announced they were moving 110 quality jobs from Jonesville, not to 15 miles within the border, but all the way to Illinois. Last week, Federal Mogul of St. Johns announced the closure of its 420-employee plant in St. Johns. Just over two weeks ago, Delphi announced the eventual closure of plants in Adrian, Coopersville, Flint, and Saginaw--totaling 10,000 Michigan employees.
When it comes time to fill these massive buildings and hire these workers, the replacement business, Madam President, could be, guess what?--a distribution or logistics company, a commercial warehouse that could fill some of the void left by these manufacturing companies. These modern-day commercial warehouses, if you read The World Is Flat, are engaging enterprises beyond our wildest dreams. Certainly, beyond what the founders envisioned when they established Public Act 198 in 1974-1975. But we won't replace these facilities with these commercial distribution centers if we don't give Michigan communities the same tools our neighboring states give their communities.
Why would a distribution center fill a building in St. Johns or Adrian if they could fill a similar building and receive the incentive to do so in Indiana, as they have? Why would a logistics center move to Coopersville or Saginaw if a similar community in Ohio or Illinois can offer the same economic incentive that our communities cannot?
Is diversification of Michigan's economy really our goal? Do we really believe in local control? Do we trust our local economic development directors in our cities, villages, and townships--15 miles, 100 miles, wherever--and township officials to make decisions in the best interests of their communities? Do we want to increase our chances of attracting quality jobs to our state when we desperately need them? The answer is yes. We need to vote for this bill. This is a small but important step that this Legislature can take to turn our economy around and I trust that the Governor will concur.