2012 Senate Bill 1071 / Public Act 403

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Introduced in the Senate

April 17, 2012

Introduced by Sen. Mike Nofs (R-19)

To eliminate (starting in 2015) the so-called “personal property tax” that manufacturers currently pay on tools and equipment (including things like assembly lines), if the equipment has been in use for at least 10 years. This is part of a package comprised of Senate Bills 1065 to 1072.

Referred to the Committee on Finance

May 10, 2012

Amendment offered by Sen. Dave Hildenbrand (R-29)

To suspend the proposed personal property tax cuts on business tools and equipment if the legislature fails to appropriate the reimbursements of foregone revenue to local governments proposed by Senate Bill 1072.

The amendment passed by voice vote

Passed in the Senate 24 to 13 (details)

Received in the House

May 10, 2012

Referred to the Committee on Tax Policy

Dec. 5, 2012

Reported without amendment

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

Dec. 13, 2012

Substitute offered

The substitute passed by voice vote

Amendment offered by Rep. Phil Cavanagh (D-17)

To reimpose the tax imposed on business tools and equipment if the legislature fails to appropriate replacement revenue to local governments.

The amendment failed by voice vote

Amendment offered by Rep. Vicki Barnett (D-37)

To delay the proposed phase-out of this tax.

The amendment failed 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

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

To revise a detail of how the tax cut (which comes in the form of a tax "credit") will be claimed by businesses.

The amendment passed by voice vote

Amendment offered by Rep. Jud Gilbert (R-81)

To classify some specific types of business activity as "industrial," which means larger tax cuts under this legislative package.

The amendment passed by voice vote

Passed in the House 57 to 51 (details)

To gradually eliminate the so-called “personal property tax” that manufacturers currently pay on tools and equipment (including things like assembly lines). This is part of a package comprised of Senate Bills 1065 to 1072.

Received in the Senate

Dec. 14, 2012

Passed in the Senate 25 to 13 (details)

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

Signed by Gov. Rick Snyder

Dec. 20, 2012