HB 6043, As Passed Senate

HB-6043, As Passed Senate, December 12, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 6043

A bill to amend 2005 PA 210, entitled

"Commercial rehabilitation act,"

by amending section 2 (MCL 207.842).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. As used in this act:

(a) "Commercial property" means land improvements classified

by law for general ad valorem tax purposes as real property

including real property assessable as personal property pursuant to

sections 8(d) and 14(6) of the general property tax act, 1893 PA

206, MCL 211.8 and 211.14, the primary purpose and use of which is

the operation of a commercial business enterprise or multifamily

residential use. Commercial property shall also include facilities

related to a commercial business enterprise under the same

ownership at that location, including, but not limited to, office,

engineering, research and development, warehousing, parts

distribution, retail sales, and other commercial activities.

Commercial property also includes a building or group of contiguous

buildings previously used for industrial purposes that will be

converted to the operation of a commercial business enterprise.

Commercial property does not include any of the following:

(i) Land.

(ii) Property of a public utility.

(b) "Commercial rehabilitation district" or "district" means

an area not less than 75 3 acres in size of a qualified local

governmental unit established as provided in section 3. However, if

the commercial rehabilitation district is located in a downtown or

business area as determined by the legislative body of the

qualified local governmental unit, the district may be less than 3

acres in size.

"certificate" means the certificate issued under section 6.

(d) "Commercial rehabilitation tax" means the specific tax

levied under this act.

(e) "Commission" means the state tax commission created by

1927 PA 360, MCL 209.101 to 209.107.

(f) "Department" means the department of treasury.

(g) "Multifamily residential use" means multifamily housing

consisting of 5 or more units.

(h) ~~(g)~~ "Qualified facility" means a building or group of

contiguous buildings of commercial property ~~consisting of~~

House Bill No. 6043 (H-2) as amended June 29, 2006

~~1,000,000 or more square feet of space that is 40% or more vacant~~

~~for 12 or more consecutive months immediately preceding the date of~~

~~application for the certificate and~~ that is 15 years old or older

or [HAS BEEN ALLOCATED] for a new markets tax credit under section 45d

the internal revenue code, 26 USC 45d. A qualified facility does

not include property that is to be used as a professional sports

stadium. A qualified facility does not include property that is to

be used as a casino. As used in this subdivision, "casino" means a

casino or a parking lot, hotel, motel, or retail store owned or

operated by a casino, an affiliate, or an affiliated company,

regulated by this state pursuant to the Michigan gaming control and

revenue act, the Initiated Law of 1996, MCL 432.201 to 432.226.

(i) ~~(h)~~ "Qualified local governmental unit" means a city,

village, or township.

(j) ~~(i)~~ "Rehabilitation" means changes to a qualified

facility that are required to restore or modify the property,

together with all appurtenances, to an economically efficient

condition. Rehabilitation includes major renovation and

modification including, but not necessarily limited to, the

improvement of floor loads, correction of deficient or excessive

height, new or improved fixed building equipment, including

heating, ventilation, and lighting, reducing multistory facilities

to 1 or 2 stories, improved structural support including

foundations, improved roof structure and cover, floor replacement,

improved wall placement, improved exterior and interior appearance

of buildings, and other physical changes required to restore or

change the obsolete property to an economically efficient