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Legislation watch

2012 House Bill 6008: Establish new “non-ferrous” mine taxation regime

Public Act 410 of 2012

Introduced by Rep. Matt Huuki (R) on November 8, 2012 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”.   Official Text and Analysis.
Referred to the House Tax Policy Committee on November 8, 2012
Reported in the House on November 27, 2012 With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered in the House on November 28, 2012
The substitute passed by voice vote in the House on November 28, 2012
Amendment offered by Rep. Matt Huuki (R) on November 28, 2012 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 in the House on November 28, 2012
Amendment offered by Rep. Steven Lindberg (D) on November 28, 2012 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 in the House on November 28, 2012
Amendment offered by Rep. Steven Lindberg (D) on November 28, 2012 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 in the House on November 28, 2012
Amendment offered by Rep. Steven Lindberg (D) on November 28, 2012 To give a portion portion of the proposed new tax to local school districts.
The amendment failed by voice vote in the House on November 28, 2012
Amendment offered by Rep. Steven Lindberg (D) on November 28, 2012 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 in the House on November 28, 2012
Passed 62 to 45 in the House on November 29, 2012
Received in the Senate on November 29, 2012
Referred to the Senate Economic Development Committee on November 29, 2012
Reported in the Senate on December 6, 2012 With the recommendation that the bill pass.
Substitute offered in the Senate on December 13, 2012
The substitute passed by voice vote in the Senate on December 13, 2012
Passed 26 to 12 in the Senate on December 13, 2012 (same description)
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 on December 13, 2012
Passed 67 to 38 in the House on December 14, 2012 To concur with the Senate-passed version of the bill.
Signed by Gov. Rick Snyder on December 20, 2012

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