2014 Senate Bill 821 / Public Act 86

Revise 2012 “personal property tax” reform law

Introduced in the Senate

Feb. 25, 2014

Introduced by Sen. Jack Brandenburg (R-11)

To revise details of a mechanism created by a <a href=" http://www.legislature.mi.gov/documents/2011-2012/billanalysis/Senate/pdf/2011-SFA-1065-N.pdf">2012 legislative package</a> enacted to distribute some state use tax revenue to local governments, which would replace revenue they lose due to reductions in the "personal property tax" imposed on business tools and equipment. The bill is part of a package comprised of Senate Bills 821 to 830, which essentially replace all of the foregone local personal property tax revenue from that 2012 tax cut, rather than most of it. For any of this to happen voters must approve related changes to the state “use tax” in an August, 2014 ballot initiative; this legislative package was negotiated to forestall local government opposition to that measure.

Referred to the Committee on Finance

Feb. 27, 2014

Reported without amendment

With the recommendation that the bill pass.

March 4, 2014

Substitute offered

The substitute passed by voice vote

Amendment offered by Sen. Gretchen Whitmer (D-23)

To "tie bar" the bill to Senate Bill 658, which would impose sales tax on many catalog or internet purchases made from sellers outside the state, by placing in statute a broad definition of “nexus,” or affiliation with a different business located in Michigan, in the manner pioneered by internet retailer Amazon.com.

The amendment failed 12 to 26 (details)

Passed in the Senate 36 to 2 (details)

Received in the House

March 4, 2014

Referred to the Committee on Tax Policy

March 19, 2014

Reported without amendment

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

March 25, 2014

Substitute offered

The substitute passed by voice vote

Passed in the House 107 to 2 (details)

To revise details of a mechanism created by a <a href=" http://www.legislature.mi.gov/documents/2011-2012/billanalysis/Senate/pdf/2011-SFA-1065-N.pdf">2012 legislative package</a> enacted to distribute some state use tax revenue to local governments, which would replace revenue they lose due to reductions in the "personal property tax" imposed on business tools and equipment. The bill is part of a package comprised of Senate Bills 821 to 830, which essentially replace all of the foregone local personal property tax revenue from that 2012 tax cut, rather than most of it. For any of this to happen voters must approve related changes to the state “use tax” in an August, 2014 ballot initiative; this legislative package was negotiated to forestall local government opposition to that measure.

Received in the Senate

March 26, 2014

March 27, 2014

Passed in the Senate 34 to 2 (details)

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

Motion to reconsider by Sen. Arlan Meekhof (R-30)

The vote by which the bill was passed.

The motion passed by voice vote

Received

Passed in the Senate 35 to 2 (details)

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

Signed by Gov. Rick Snyder

April 1, 2014