Michigan House Bill HB5744

Michigan 2023-2024 Regular Session

• Introduced: 5/23/24
• Refer: 5/23/24

Caption

Property tax: exemptions; personal property constituting certain hydrogen fuel pumps; exempt. Amends secs. 27 & 34d of 1893 PA 206 (MCL 211.27 & 211.34d) & adds sec. 9q.

Impact

The introduction of this tax exemption is expected to impact the state's property tax revenues significantly, especially as it pertains to companies investing in hydrogen fuel technology. By exempting these fueling stations from property taxes, the state is looking to encourage investment in alternative energy sources, potentially leading to increased infrastructure for hydrogen fuel across Michigan. This aligns with broader goals of energy diversification and reducing carbon emissions.

Summary

House Bill 5744 aims to amend the General Property Tax Act of 1893 by introducing a new provision that exempts specific types of personal property from tax collection. This exemption specifically applies to industrial and commercial personal properties that qualify as hydrogen fuel pumps, set to take effect for taxes levied after December 31, 2024. The bill defines what constitutes a 'qualified hydrogen fuel pump', referring to devices used for filling motor vehicles with hydrogen fuel that meet specific pressure standards designated as H35 and H70.

Contention

While the bill has garnered support from advocates of alternative energy, concerns have been raised regarding possible revenue losses for local governments that depend on property taxes. Opponents argue that the exemption may create disparities in tax burdens, placing a heavier burden on other taxpayers to compensate for the lost revenue from hydrogen fuel facilities. Additionally, some have questioned whether the measure could lead to a rush of businesses to claim exemptions under potentially ambiguous definitions of qualifying equipment.