This bill amends the 1974 Public Act 198, which governs the establishment of plant rehabilitation and industrial development districts in Michigan. It introduces new provisions regarding the industrial facility tax, which is levied on owners of speculative buildings, new facilities, or replacement facilities that receive an industrial facilities exemption certificate. The bill specifies that the tax and an administrative fee must be paid annually, aligning with the payment schedule of ad valorem taxes under the general property tax act. Additionally, it clarifies the distribution of the industrial facility tax payments to various local governmental units and modifies the calculation of disbursements to local school districts, particularly in relation to state school aid.

Key changes include the insertion of language that defines the "state school aid fund" and the exemption of facilities located in renaissance zones or HOPE zones from the industrial facility tax, except for certain assessments. The bill also updates the language regarding the disbursement of taxes, ensuring that the calculations reflect current tax rates and conditions. Furthermore, it removes outdated provisions related to exemptions for qualified start-up businesses, streamlining the process for tax exemptions while maintaining the requirement for local governing bodies to adopt resolutions for such exemptions. Overall, the bill aims to modernize the tax framework for industrial facilities in Michigan while ensuring equitable distribution of tax revenues to local entities.

Statutes affected:
House Introduced Bill: 207.561