2014 Senate Bill 829 / Public Act 92

Revise 2012 “personal property tax” reform law

Introduced in the Senate

Feb. 25, 2014

Introduced by Sen. Rebekah Warren (D-18)

To replace a local “essential services special assessment” (tax) with a state version. The local version was authorized by a <a href=" http://www.legislature.mi.gov/documents/2011-2012/billanalysis/Senate/pdf/2011-SFA-1065-N.pdf">2012 personal property tax reform law</a> to reimburse local governments for lost revenue from the tax cuts in that 2012 law. Senate Bill 822 would increase an earmark of the state use tax to essentially replace all of the foregone local government revenue instead of most of it. The revenue the state gives up to the earmark would be replaced by imposing the tax authorized by this bill on some but not all of the businesses getting a tax cut. In addition, the political appointees on the board of the state economic development agency empowered to grant exemptions to particular firms they select. For any of this to happen voters must approve related changes to the state use tax in an August, 2014 ballot initiative; the current proposal is intended to forestall local government opposition to that measure.

Referred to the Committee on Finance

Feb. 27, 2014

Reported without amendment

With the recommendation that the bill pass.

March 4, 2014

Substitute offered

The substitute passed by voice vote

Passed in the Senate 36 to 2 (details)

Received in the House

March 4, 2014

Referred to the Committee on Tax Policy

March 19, 2014

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

March 25, 2014

Substitute offered

The substitute passed by voice vote

Amendment offered by Rep. Jeff Farrington (R-30)

To clarify details of which business tools and equipment the new tax would be levied on.

The amendment passed by voice vote

Passed in the House 105 to 4 (details)

To replace a local “essential services special assessment” (tax) with a state version. The local version was authorized by a <a href=" http://www.legislature.mi.gov/documents/2011-2012/billanalysis/Senate/pdf/2011-SFA-1065-N.pdf">2012 personal property tax reform law</a> to reimburse local governments for lost revenue from the tax cuts in that 2012 law. Senate Bill 822 would increase an earmark of the state use tax to essentially replace all of the foregone local government revenue instead of most of it. The revenue the state gives up to the earmark would be replaced by imposing the tax authorized by this bill on some but not all of the businesses getting a tax cut. In addition, the political appointees on the board of the state economic development agency empowered to grant exemptions to particular firms they select. For any of this to happen voters must approve related changes to the state use tax in an August, 2014 ballot initiative; the current proposal is intended to forestall local government opposition to that measure.

Received in the Senate

March 26, 2014

March 27, 2014

Passed in the Senate 35 to 2 (details)

To concur with the House-passed version of the bill.

Signed by Gov. Rick Snyder

April 1, 2014