Vote Smart's Synopsis:

Vote to pass a bill that establishes a property tax surcharge on property valued over $1 million.

Highlights:

• Defines “integrated production operation” as an integrated series of operations at a manufacturing or processing plant or facility to process, transform, or convert tangible personal property by physical, chemical, or other means into a different form, composition, or character from that in which it originally existed. Integrated production operations begin when raw material is first changed physically, chemically, or otherwise in form, composition, or character, including being removed from storage or introduced for this manipulation, and end when the product is placed in initial packaging and includes production line operations, including initial packaging operations, and waste, pollution, and environmental control operations (Sec. 4.C.i).

• Requires the General Fund to be composed of revenues from the following sources (Sec. 2.b):

• 33 percent of the revenue from the property transfer taxes levied and the revenue from the gains taxes levied each year; and

• The revenue raised by the surcharge imposed.

• Requires 2 percent of the revenues received from the property transfer tax to be deposited in a special fund in the Department of Taxes for Property Valuation and Review administration costs (Sec. 3.c).

• Requires the Commissioner of Taxes to annually estimate the revenue raised by the surcharge imposed and transfer that same amount to the General Fund (Sec. 3.e).

• Specifies machinery and equipment will be deemed to be used as an integral or essential part of an integrated production operation when used during the integrated production operation (Sec. 4.D).

• Establishes when machinery or equipment is used as an integral or essential part of production operations part of the time and for nonproduction purposes at other times, the primary use of the machinery or equipment shall determine the qualification of the machinery or equipment for the exemption (Sec. 4.F).

• Appropriates in any fiscal year,an award to the allocating agency of up to (Sec. 5):

• $400,000 in total first-year credit allocations to all applicants for rental housing projects, for an aggregate limit of $2 million over any given 5-year period that credits are available;

• $675,000 in total first-year credit allocations for loans or grants for owner-occupied unit financing or down payment loans consistent with the allocation plan, including for new construction and manufactured housing, for an aggregate limit of $3.37 million over any given 5-year period that credits are available.

• Specifies if the full amount of first-year credits authorized by an award are not allocated to a taxpayer, the Agency may reclaim the amount not allocated and re-award such allocations to other applicants (Sec. 5-2).

Full Bill Text