2012 House Bill 6024 / Public Act 406

Authorize “essential services” tax on industrial plants

Introduced in the House

Nov. 8, 2012

Introduced by Rep. Jud Gilbert (R-81)

To give local governments the power to impose targeted property taxes on industrial and commercial property that is said by the bill to be “especially benefited” by fire, police and ambulance services. This would replace some of the revenue from proposed reductions in the property tax imposed on business tools and equipment ("personal property tax").

Referred to the Committee on Tax Policy

Dec. 5, 2012

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Dec. 6, 2012

Substitute offered

The substitute failed by voice vote

Passed in the House 57 to 52 (details)

To give local governments the power to impose targeted property taxes on industrial and commercial property deemed by the bill to be “especially benefited” by fire, police and ambulance services. This would replace some of the revenue from proposed reductions in the property tax imposed on business tools and equipment ("personal property tax"); see Senate Bills 1065 to 1071.

Received in the Senate

Dec. 6, 2012

Referred to the Committee on Finance

Dec. 12, 2012

Reported without amendment

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

Substitute offered

The substitute passed by voice vote

Passed in the Senate 23 to 14 (details)

To give local governments the power to impose targeted property taxes on industrial and commercial property deemed by the bill to be “especially benefited” by fire, police and ambulance services. This would replace some of the revenue from proposed reductions in the property tax imposed on business tools and equipment ("personal property tax"); see Senate Bills 1065 to 1071.

Received in the House

Dec. 12, 2012

Dec. 13, 2012

Amendment offered by Rep. Sean McCann (D-60)

To also let local governments use revenue from the proposed tax to cover jail operations.

The amendment passed by voice vote

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

To make the bill's provisions contingent on approval by voters of a measure earmarking a portion to the state use tax to replacing local government revenue foregone by cutting the property tax on business tools and equipment.

The amendment passed by voice vote

Passed in the House 57 to 52 (details)

To give local governments the power to impose targeted property taxes on industrial and commercial property deemed by the bill to be “especially benefited” by fire, police and ambulance services. This would replace some of the revenue from proposed reductions in the property tax imposed on business tools and equipment ("personal property tax"); see Senate Bills 1065 to 1071.

Received in the Senate

Dec. 14, 2012

Passed in the Senate 24 to 14 (details)

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

Signed by Gov. Rick Snyder

Dec. 20, 2012