2021 Senate Bill 46

Exempt some developers' “broadband equipment” from personal property tax

Introduced in the Senate

Jan. 26, 2021

Introduced by Sen. Aric Nesbitt (R-26)

To exempt “broadband equipment” owned by certain internet developers claiming to serve "underserved areas" from personal property taxes levied on business tools and equipment. The bill is connected to House Bill 4210, and the Senate Fiscal Agency is unable to quantify the amount of foregone revenue the tax subsidies they promise would cost the state, in part because the bills would permit developers to claim them in areas where broadband internet may already be available.

Referred to the Committee on Energy and Technology

Feb. 10, 2021

Reported without amendment

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

Feb. 18, 2021

Passed in the Senate 20 to 15 (details)

Received in the House

Feb. 18, 2021

Referred to the Committee on Communications and Technology

March 9, 2021

Reported without amendment

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

March 24, 2021

Amendment offered by Rep. Abraham Aiyash (D-4)

To require public hearings before the proposed selective tax breaks may be given; require the developers granted this privilege to send a written notice clearly describing the new service to every address in the area covered, and put time limits on the tax breaks.

The amendment failed by voice vote

Amendment offered by Rep. Abraham Aiyash (D-4)

To establish that all records related the tax breaks be subject to open records law disclosure requirements; require developers granted this privilege to let customers opt out of having to share personal data; and notify customers of any security breach.

The amendment failed by voice vote

Amendment offered by Rep. Abraham Aiyash (D-4)

To establish customer uptake thresholds that if not met would cause the selective tax break given to a developer to be terminated. Also, to require the Department of Treasury to publish detailed information on the exemptions granted under the bill and the amount of foregone property tax revenue they represent.

The amendment failed by voice vote

Amendment offered by Rep. Abraham Aiyash (D-4)

To make the proposed tax breaks prospective only, rather than also giving them to developers whose projects were in the works before the start of 2021.

The amendment failed by voice vote

March 25, 2021

Passed in the House 57 to 49 (details)

To exempt “broadband equipment” owned by certain internet developers claiming to serve "underserved areas" from personal property taxes levied on business tools and equipment. The bill is connected to House Bill 4210, and the Senate Fiscal Agency is unable to quantify the amount of foregone revenue the tax subsidies they promise would cost the state, in part because the bills would permit developers to claim them in areas where broadband internet may already be available.

Received in the Senate

April 13, 2021

April 21, 2021

Substitute offered by Sen. Aric Nesbitt (R-26)

The substitute passed by voice vote

Passed in the Senate 19 to 14 (details)

Motion to reconsider by Sen. Dan Lauwers (R-25)

The vote by which the bill was passed.

The motion passed by voice vote

Received

Passed in the Senate 20 to 14 (details)

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

Received in the House

April 21, 2021

April 27, 2021

Passed in the House 58 to 51 (details)

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

Vetoed by Gov. Gretchen Whitmer

May 13, 2021

Received in the Senate

May 13, 2021

May 18, 2021

Failed in the Senate 20 to 15 (details)

To override the governor's veto. This requires a two-thirds majority and so failed.