2023 Senate Bill 237

Use tax: definitions; data center equipment used by an enterprise data center; exempt.

A bill to amend 1937 PA 94, entitled “Use tax act,” by amending section 4cc (MCL 205.94cc), as added by 2015 PA 252.

Mackinac Center Analysis

Extends exemptions of particular data centers from sales and use taxes to 2050. Exemptions are only available to large data centers who meet other criteria and apply for exemptions.

Introduced in the Senate

March 23, 2023

Introduced by Sen. Kevin Hertel (D-12) and five co-sponsors

Co-sponsored by Sens. Joseph Bellino (R-16), Roger Victory (R-31), Paul Wojno (D-10), Veronica Klinefelt (D-11) and Sylvia Santana (D-2)

Referred to the Committee on Finance, Insurance, and Consumer Protection

March 13, 2024

Reported with substitute S-5

March 14, 2024

Referred to the Committee of the Whole

May 9, 2024

Reported with substitute S-11

1. Amend page 8, following line 13, by inserting:

“(9) The Michigan Strategic Fund Board shall not issue any new certificates of exemption under the provisions of this Section after December 31, 2029. This sunset shall not affect any existing certificates of exemption in effect on December 31, 2029.” and renumbering the remaining subsection.

Substitute S-11 concurred in by voice vote

Passed in the Senate 24 to 11 (details)

Received in the House

May 14, 2024

Sept. 25, 2024

Substitute H-3 offered by Rep. Joey Andrews (D-38)

The substitute failed by voice vote

Substitute H-6 offered by Rep. Alabas Farhat (D-3)

The substitute passed by voice vote

Amendment offered by Rep. Mike Harris (R-52)

1. Amend page 14, following line 21, by inserting:

“(x) The facility will not take electric service under any of the following rates:

(A) The long-term industrial load rate established under section 10gg of 1939 PA 3, MCL 460.10gg, unless the designated power supply resource on which the long-term industrial load rate is based was placed in operation after January 1, 2024, and the rate is at least equivalent to the average industrial rate charged to other industrial customers of the electric utility that serves the facility.

(B) A tariff rate approved in Michigan Public Service Commission Case No. U-21160, U-21163, or U-21646.

(C) A rate that causes residential customers to subsidize the costs incurred to provide electric service to the facility.”.

The amendment passed by voice vote

Passed in the House 56 to 41 (details)

Motion to give immediate effect by Rep. Abraham Aiyash (D-9)

The motion prevailed by voice vote

Received in the Senate

Sept. 26, 2024