2005 Senate Bill 175

Tax break for certain warehouses

Introduced in the Senate

Feb. 9, 2005

Introduced by Sen. Cameron Brown (R-16)

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 150,000 square feet, and pays employees more than the average county wage.

Referred to the Committee on Economic Development, Small Business, and Regulatory Reform

May 10, 2005

Reported without amendment

With the recommendation that the bill pass.

May 12, 2005

Passed in the Senate 25 to 12 (details)

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 150,000 square feet, and pays employees more than the average county wage. This was introduced after Performance Foods chose to locate a warehouse in Indiana rather than in Constantine, Michigan, near the Indiana border, but it could qualify other warehouses for a tax break, including a Wal-Mart facility near Mt. Pleasant (see <a href="http://www.michiganvotes.org/2005-SB-434">Senate Bill 434</a>).

Received in the House

May 17, 2005

Referred to the Committee on Commerce

Sept. 13, 2005

Reported without amendment

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

Oct. 18, 2005

Substitute offered

To replace the previous version of the bill with one that strips out the requirement that the facility pay an average weekly wage equal or greater than the average weekly wage in the county. Also, to lower the size threshold from 150,000 square feet to 100,000 square feet.

The substitute passed by voice vote

Passed in the House 60 to 48 (details)

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 was introduced after Performance Foods chose to locate a warehouse in Indiana rather than in Constantine, Michigan, near the Indiana border, but it could qualify other warehouses for a tax break, including a Wal-Mart facility near Mt. Pleasant (see <a href="http://www.michiganvotes.org/2005-SB-434">Senate Bill 434</a>).

Received in the Senate

Oct. 19, 2005

Oct. 26, 2005

Amendment offered by Sen. Deborah Cherry (D-26)

To put back in the requirement that the facility pay an average weekly wage equal or greater than the average weekly wage in the county.

The amendment failed 18 to 20 (details)

Substitute offered by Sen. Cameron Brown (R-16)

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Amendment offered by Sen. Ray Basham (D-8)

To tie-bar the bill to Senate Bill 734, meaning this bill cannot become law unless that one does also. SB 734 would impose a new “Medicaid tax” on large employers that spend less than a specified amount on employee health insurance, which could apply to Wal-Mart. This bill is would authorize a targeted property tax break for a warehouse near the Indiana border, but could qualify other warehouses for a tax break, including a Wal-Mart facility near Mt. Pleasant (see <a href="http://www.michiganvotes.org/2005-SB-434">Senate Bill 434</a>.

The amendment failed by voice vote

Passed in the Senate 22 to 16 (details)

To concur with the House-passed version of the bill, which does not have the requirement that the facility pay an average weekly wage equal or greater than the average weekly wage in the county.

Received in the House

Oct. 26, 2005

Passed in the House 60 to 48 (details)

Vetoed by Gov. Jennifer Granholm

Nov. 17, 2005