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2015 Senate Bill 616: Exempt developers of “Pyramid” building from sales tax

Public Act 251 of 2015

Introduced by Sen. Tonya Schuitmaker (R) on November 10, 2015 To exempt from sales tax the purchase of specified business equipment by the developers of a proposed “data center” to be located in the former Steelcase “Pyramid” building in Grand Rapids, including computers, servers, construction materials, infrastructure, machinery, wiring, cabling, devices, tools, vehicles, technology, software, hardware and more.
Related bills (Senate bill 618 and 5076) would exempt the owners of this operation from having to pay use tax and property tax on business tools and equipment.   Official Text and Analysis.
Referred to the Senate Michigan Competitiveness Committee on November 10, 2015
Reported in the Senate on December 3, 2015 With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
Amendment offered in the Senate on December 3, 2015 To only exempt eligible firms from two-thirds of the sales tax.
The amendment passed by voice vote in the Senate on December 3, 2015
Amendment offered by Sen. David Knezek (D) on December 3, 2015 To require the legislature to appropriate money to public schools from other revenue to compensate for the amount the proposed tax breaks reduce revenue that currently flow into the state school aid fund.
The amendment passed by voice vote in the Senate on December 3, 2015
Passed 21 to 15 in the Senate on December 3, 2015.
    See Who Voted "Yes" and Who Voted "No".
To partially exempt business equipment purchases made by an internet data center from the state sales tax. The bill originally applied only to the developers of proposed data center in the vacant “Pyramid” building near Grand Rapids, but was expanded to all companies in this particular business. For the next 15 years these firms would only have to pay 2 percent sales tax on most equipment and construction materials, rather than 6 percent like others.
Received in the House on December 3, 2015
Referred to the House Tax Policy Committee on December 3, 2015
Reported in the House on December 9, 2015 With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered by Rep. Ken Yonker (R) on December 15, 2015 To exempt these firms from the full 6 percent sales tax, not just two-thirds of it, and add some additional conditions on the tax breaks.
The substitute passed by voice vote in the House on December 15, 2015
Amendment offered by Rep. Jim Townsend (D) on December 15, 2015 To end the tax breaks if the companies do not create a specified number of jobs by specific dates.
The amendment passed by voice vote in the House on December 15, 2015
Amendment offered by Rep. Michael Webber (R) on December 15, 2015 To clarify details of sales and use tax levied on "cloud" computing software and services.
The amendment failed by voice vote in the House on December 15, 2015
Passed 61 to 45 in the House on December 15, 2015.
    See Who Voted "Yes" and Who Voted "No".
To exempt business equipment purchases made by an internet data center from the state sales tax. The bill originally applied only to the developers of proposed data center in the vacant “Pyramid” building near Grand Rapids, but was expanded to all companies in this particular business. The House did not adopt the proposal in Senate Bill 618 to also exempt these firms from property taxes levied on business tools and equipment (the so-called "personal property tax").
Received in the Senate on December 15, 2015
Passed 26 to 12 in the Senate on December 15, 2015.
    See Who Voted "Yes" and Who Voted "No".
To concur with the House-passed version of the bill, which exempts these firms from the full 6 percent sales tax, not just two-thirds of it.
Signed by Gov. Rick Snyder on December 23, 2015

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