REDEVELOPMENT RENAISSANCE ZONE

Senate Bill 1453

Sponsor:  Sen. Alan L. Cropsey

Senate Committee:  Commerce and Labor

House Committee:  Commerce

Complete to 11-29-04

A SUMMARY OF SENATE BILL 1453 AS PASSED BY THE SENATE

The bill would amend the Michigan Renaissance Zone Act to authorize the board of the Michigan Strategic Fund to designate a "redevelopment renaissance zone."  (This would be in addition to currently authorized zones). A redevelopment renaissance zone would have to promote the development of existing industrial facilities.

Under the act, businesses and residents within a renaissance zone are eligible for tax exemptions and credits, including exemptions from the single business tax, the state income tax, a city income tax, and property taxes. Under the bill, residents and businesses in a redevelopment renaissance zone would not be eligible for the city income tax exemption or the property tax exemption.

"Redevelopment renaissance zone" would mean a renaissance zone that contains an industrial site of 200 or more acres located in a city with a population of more than 7,500 and less than 8,500 and in a county with a population of more than 60,000 and less than 70,000 (i.e., the City of Greenville in Montcalm County).

MCL 125.2688a and 125.2689

FISCAL IMPACT:

The bill could reduce state revenue by an indeterminate amount.  Without knowing the amount of economic activity that would result from the additional renaissance zone, the bill's fiscal impact cannot be accurately determined.

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Jim Stansell

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.