HOUSE BILL No. 6043

 

May 9, 2006, Introduced by Reps. Pastor, Taub, Acciavatti, Jones, Amos, Garfield and Gosselin and referred to the Committee on Commerce.

 

     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 acres in size  of a qualified local

 

governmental unit established as provided in section 3.

 

     (c) "Commercial rehabilitation exemption certificate" or

 

"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) "Qualified facility" means a building or group of

 

contiguous buildings of commercial property  consisting of

 

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.

 

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.

 

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

 

or township.

 

     (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 condition. Rehabilitation

 

shall not include improvements aggregating less than 10% of the

 

true cash value of the property at commencement of the

 

rehabilitation of the qualified facility.

 

     (j) "Taxable value" means the value determined under section

 

27a of the general property tax act, 1893 PA 206, MCL 211.27a.