Bill > HB4788

This bill establishes the "Replacement Electric Distribution Infrastructure Specific Tax Act," which creates a new tax mechanism for utility infrastructure replacement. The bill defines "qualified replacement electric distribution infrastructure" as utility personal property (such as poles, wires, and supporting hardware) installed by electric utilities to replace depreciated infrastructure within the same service territory, without expanding the service area. For taxes levied after December 31, 2025, this type of infrastructure will be exempt from traditional property taxes. Instead, a specific annual tax will be levied, initially calculated at 30 mills based on the taxable value of the replaced infrastructure, with subsequent years' rates adjusted according to the Consumer Price Index. The tax will be collected and disbursed in the same manner as standard property taxes, with funds distributed to various local government entities proportionally. Unpaid specific taxes will be subject to the same forfeiture and foreclosure processes as standard property taxes. Notably, the bill is tied to House Bill 4787, meaning it will only take effect if that companion bill is also enacted into law. The primary intent appears to be creating a standardized tax approach for utility infrastructure replacement that provides predictable revenue for local governments while supporting infrastructure modernization.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4788