Property tax: exemptions; general property tax act; reflect repeal of data center tax exemptions. Amends sec. 7ff of 1893 PA 206 (MCL 211.7ff). TIE BAR WITH: HB 5396'25, HB 5397'25
Impact
This legislation has significant implications for local governments and property owners within renaissance zones. It outlines specific exemptions for residential rental properties and personal properties that meet certain conditions, reinforcing compliance with local zoning and building laws. Furthermore, properties associated with casinos within renaissance zones remain subjected to these taxes, which could lead to increased tax revenue for local governments. The interaction of this bill with previously established data center tax exemptions marks a notable shift in taxation policy for technology-based businesses operating in the area.
Summary
House Bill 5398 proposes to amend the General Property Tax Act to address tax exemptions concerning property located in renaissance zones in Michigan. Specifically, it aims to reflect the repeal of certain data center tax exemptions while maintaining existing exemptions for real and personal property in such zones as stipulated by the Michigan renaissance zone act. The bill outlines the boundaries of what properties can be exempt from the general collection of taxes while also preserving local tax collection rights for special assessments and certain ad valorem property taxes.
Contention
HB 5398 has sparked discussions regarding the balance between incentivizing business development in renaissance zones and ensuring adequate tax revenue for local governments. Critics may raise concerns about the fairness of repealing data center tax exemptions while continuing to offer substantial exemptions for other properties. Moreover, there is an ongoing debate about the role of local governments in managing property taxes and how state-level legislation can inadvertently undermine local authority to meet their unique needs.
Same As
Use tax: exemptions; data center exemption; eliminate. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & repeals sec. 4cc of 1937 PA 94 (MCL 205.94cc).
Same As
Sales tax: exemptions; data center exemption; eliminate. Amends sec. 25 of 1933 PA 167 (MCL 205.75) & repeals sec. 4ee of 1933 PA 167 (MCL 205.54ee).
Property tax: exemptions; property tax exemption for certain utility personal property; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 4788'25
Economic development: obsolete property and rehabilitation; HOPE zone exemption; provide for. Amends sec. 10 of 2000 PA 146 (MCL 125.2790). TIE BAR WITH: HB 5852'26, HB 5856'26
Economic development: enterprise zones; HOPE zone exemption; provide for. Amends sec. 21c of 1985 PA 224 (MCL 125.2121c). TIE BAR WITH: HB 5852'26, HB 5856'26
Use tax: exemptions; compliance with enterprise data center construction labor act; require. Amends sec. 4cc of 1937 PA 94 (MCL 205.94cc). TIE BAR WITH: HB 5786'26, HB 5787'26
Economic development: other; the general property tax act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 9f of 1893 PA 206 (MCL 211.9f). TIE BAR WITH: SB 0631'25, SB 0659'25
Property tax: exemptions; property tax exemption from certain school-related millages if the property's owner has no children attending public schools in this state; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 5377'25, HB 5378'25, HB 5379'25