Use tax: other; reference to the brownfield redevelopment financing act; update. Amends sec. 4dd of 1937 PA 94 (MCL 205.94dd). TIE BAR WITH: SB 0129'23
Impact
The passage of SB 0131 is expected to enhance the state's capacity to incentivize redevelopment projects in brownfield areas. By exempting certain materials from taxation, the bill aims to lower project costs, ultimately stimulating improvements that can revitalize underdeveloped or contaminated properties. This legislative change could foster a more attractive environment for businesses engaged in property improvements, thus impacting local economies positively by encouraging job creation and investment.
Summary
Senate Bill 0131, enacted in 2023, amends the 1937 PA 94 concerning the specific excise tax levied on the storage, use, or consumption of tangible personal property and certain services. The primary focus of this bill is to exempt certain tangible personal property involved in the alteration, repair, or improvement of real estate for others from the tax, provided that these activities are associated with a transformational brownfield plan. This change reflects an effort to promote economic development in such areas by encouraging investments that enhance properties within designated plans.
Sentiment
The general sentiment around SB 0131 appears to be favorable, particularly among stakeholders in the construction and real estate sectors who see the tax exemption as a means to lower financial barriers to improvement projects. However, there may be concerns among fiscal watchdogs or those who believe that tax exemptions should be approached cautiously, given their potential impact on state revenue. Overall, the bill has garnered support among legislators who prioritize economic development through infrastructure renovation.
Contention
Some points of contention may arise from the broader implications of providing tax exemptions, including debates about fairness and fiscal responsibility. Critics may argue that while the intention to spur development is positive, it could lead to reduced tax revenue that supports essential public services. Detractors may also question the effectiveness of such tax incentives in truly driving growth, suggesting that clearer performance metrics be included to assess their impact.
Same As
Economic development: brownfield redevelopment authority; certain housing activities; allow, and modify tax capture revenues. Amends title & secs. 2, 8, 8a, 11, 13, 13b, 13c, 14, 14a, 15 & 16 of 1996 PA 381 (MCL 125.2652 et seq.).
Sales tax: other; reference to the brownfield redevelopment financing act; update. Amends sec. 4d of 1933 PA 167 (MCL 205.54d). TIE BAR WITH: SB 0129'23
Property tax: other; reference to the brownfield redevelopment financing act; update. Amends sec. 7gg of 1893 PA 206 (MCL 211.7gg). TIE BAR WITH: SB 0129'23
Economic development: brownfield redevelopment authority; brownfield redevelopment financing act; amend to exempt museum authorities. Amends sec. 2 of 1996 PA 381 (MCL 125.2652).
Economic development: brownfield redevelopment authority; definitions of housing property and tax capture revenues and cap on total tax capture revenues; clarify definitions and modify cap. Amends secs. 2, 14a & 16 of 1996 of 381 (MCL 125.2652 et seq.).
Property tax: payment in lieu of taxes; payment in lieu of taxes for renewable energy facilities; provide for. Amends secs. 9 & 9f of 1893 PA 206 (MCL 211.9 & 211.9f). TIE BAR WITH: HB 4317'23
Economic development: brownfield redevelopment authority; definitions of housing property and tax capture revenues and cap on total tax capture revenues; clarify definitions and modify cap. Amends secs. 2, 14a & 16 of 1996 of 381 (MCL 125.2652 et seq.).
Economic development: brownfield redevelopment authority; brownfield redevelopment financing act; amend to exempt museum authorities. Amends sec. 2 of 1996 PA 381 (MCL 125.2652).
An Act Concerning The Creation Of Connecticut Brownfield Land Banks, Certain Lender Responsibility For Releases At Brownfields And Revisions To Brownfield Remediation And Development Programs.