Michigan House Bill HB4207

Michigan 2023-2024 Regular Session

• Introduced: 3/8/23
• Refer: 3/8/23

Caption

Property tax: utility property; eligible broadband equipment; exempt from certain taxes. Amends 1905 PA 282 (MCL 207.1 - 207.21) by adding sec. 5c. TIE BAR WITH: HB 4208'23

Impact

If enacted, HB4207 will directly influence how broadband equipment is taxed, aligning the state’s tax policies with its objectives of enhancing internet accessibility. This legislative change anticipates fostering economic growth in the technology sector, promoting investment in broadband infrastructure, and facilitating greater access to high-speed internet services in both urban and rural locales. By eliminating property tax obligations for eligible equipment, the bill aims to incentivize more businesses to invest in broadband technologies, which is critical for both economic development and education in the digital age.

Summary

House Bill 4207 proposes an amendment to the 1905 Public Act 282 regarding the assessment of property taxes on utility properties, particularly focusing on broadband equipment. The bill introduces a new section which exempts eligible broadband equipment used by qualified businesses from property taxation, given certain conditions are met. This exemption is intended to support the expansion of broadband services across Michigan by reducing the financial burden on businesses that are pivotal in delivering high-speed internet service to underserved areas. The exemption is set to begin on December 31, 2023, with specific application requirements outlined for businesses seeking this benefit.

Contention

Critics of HB4207 may argue that while the bill seeks to enhance broadband access, it poses challenges in terms of potential revenue loss for local governments. The state treasurer is tasked with estimating the revenue impact on the state school aid fund due to these exemptions, which could lead to significant budgetary implications. Additionally, there might be concerns regarding the precision in defining 'qualified businesses' and 'eligible broadband equipment,' which can lead to discrepancies in tax relief implementation. The bill is tied to Senate Bill 4208, suggesting that the adoption of both is crucial for the successful realization of its objectives.