2012 House Bill 6008 / Public Act 410

Establish new “non-ferrous” mine taxation regime

Introduced in the House

Nov. 8, 2012

Introduced by Rep. Matt Huuki (R-110)

To revise the taxation of “non-ferrous” mines (including new copper and other mineral mines in the Upper Peninsula). The bill is part of a package that would exempt these mines from property, income, sales and use taxes, and instead levy a “severance tax” on them based on the amount of material extracted. Various credits would be allowed against pre-operational start-up costs, including regulatory compliance costs. Most of the tax revenue would go to the local government, but some would go to a new state “rural development fund”.

Referred to the Committee on Tax Policy

Nov. 27, 2012

Reported without amendment

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

Nov. 28, 2012

Substitute offered

The substitute passed by voice vote

Amendment offered by Rep. Matt Huuki (R-110)

To clarify that this new tax regime would not apply to the following other minerals: gypsum, lime, limestone,salt, dolomite, basalt, granite, sandstone, shale, clay, stone, gravel, marl, peat, sand, gemstones, coal, substances extracted from potable water or brine, or substances extracted from oil or natural gas.

The amendment passed by voice vote

Amendment offered by Rep. Steven Lindberg (D-109)

To strip out a provision that includes in the new tax regime (including its property tax exemption) property on which the ore is processed.

The amendment failed by voice vote

Amendment offered by Rep. Steven Lindberg (D-109)

To limit including "buffer lands" around the mind in the proposed tax regime (including its property tax exemption), by limiting these to contiguous land within one-quarter mile of the mine.

The amendment failed by voice vote

Amendment offered by Rep. Steven Lindberg (D-109)

To give a portion portion of the proposed new tax to local school districts.

The amendment failed by voice vote

Amendment offered by Rep. Steven Lindberg (D-109)

To give 80 percent of the revenue from the proposed tax to local governments (instead of 65 percent), with the rest going to the state school aid fund instead of into a government "rural development fund" proposed as part of this legislative package.

The amendment failed by voice vote

Nov. 29, 2012

Passed in the House 62 to 45 (details)

Received in the Senate

Nov. 29, 2012

Referred to the Committee on Economic Development

Dec. 6, 2012

Reported without amendment

With the recommendation that the bill pass.

Dec. 13, 2012

Substitute offered

The substitute passed by voice vote

Passed in the Senate 26 to 12 (details)

To revise the taxation of “non-ferrous” mines (including new copper and other mineral mines in the Upper Peninsula). The bill is part of a package that would exempt these mines from property, income, sales and use taxes, and instead levy a “severance tax” on them based on the amount of material extracted. Various credits would be allowed against pre-operational start-up costs, including regulatory compliance costs. Most of the tax revenue would go to the local government, but some would go to a new state “rural development fund”.

Received in the House

Dec. 13, 2012

Dec. 14, 2012

Passed in the House 67 to 38 (details)

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

Signed by Gov. Rick Snyder

Dec. 20, 2012