Whitmer signs bills negotiated in Ford plant spending deal

Gov. Gretchen Whitmer signed several bipartisan bills into law Monday, including the last remaining pieces of a negotiation hammered out with Republicans to obtain enough GOP votes to secure nearly $630 million for a Ford Motor Co. electric vehicle battery plant expected to create 2,500 jobs in the Marshall area.

Whitmer said the bills will reduce taxes for businesses, help fund school district needs and improve the transparency of insurance board meetings. "Let's keep working together to lower costs, help schools better serve their students, and ensure Michiganders have greater access to information that impacts their bills," Whitmer said in a statement.

A pair of bills included in the negotiation over the Ford plant — House Bill 4054 and Senate Bill 97 — clarify tax exemptions for equipment used in industrial processing. The legislation signed by Whitmer allows equipment used in the industrial processing of aggregate — sand, gravel, and similar materials commonly used in construction — to qualify for a personal property tax exemption from the state's sales and use taxes.

The end product is subject to either the sales or use tax.

The exemptions are expected to cost the state $1 million or less. The bills hold harmless the School Aid Fund, which benefits from sales and use taxes, by having the general fund absorb any financial impact.

The governor must report an estimate of the tax forgone from exemptions under the state's use tax act. Senate Bill 160 would update the reporting requirements to reflect tax changes Whitmer approved that exempt delivery and installation charges from the 6% use tax.

The bill would specifically update a reference to reporting forgone taxes on the difference between the agreed-upon value of a motor vehicle, recreational vehicle or titled watercraft and the full retail price. This was the final bill in the negotiation to secure enough GOP votes to approve spending to support the Ford battery plant.

Whitmer also signed Senate Bill 63, which would expand how school districts pay for transportation by letting them use an alternate funding source to cover costs. Most districts pay for transportation out of their general fund, according to a Senate Fiscal Agency analysis.

The bill signed by Whitmer would allow school districts that levy taxes for a sinking fund — an account into which districts deposit voter-approved millage revenue — to purchase school buses and other vehicles used to transport students. It would still allow a sinking fund tax to be used to purchase school buildings as well as security and technology upgrades. Proponents argue the legislation frees up general fund resources for the classroom.

During the COVID-19 pandemic, stockholders, members or directors of insurance companies could meet electronically to amend their corporation's bylaws. But that provision expired last September. Senate Bill 101 would eliminate that sunset, allowing electronic insurance company meetings indefinitely.

Clara Hendrickson fact-checks Michigan issues and politics as a corps member with Report for America, an initiative of The GroundTruth Project. Make a tax-deductible contribution to support her work at bit.ly/freepRFA. Contact her at [email protected] or 313-296-5743. Follow her on Twitter @clarajanehen.