August 9, 2006, Introduced by Reps. Alma Smith, Tobocman, Hood, Kolb, Hunter, Polidori, Espinoza, Mayes, Vagnozzi, Zelenko, Clack, Kathleen Law, Cushingberry, Plakas, Accavitti, Condino, Angerer, Bennett, Bieda, Leland, Lemmons, Jr., McDowell, Byrum, Gillard, Murphy, Meisner and Lemmons, III and referred to the Committee on Commerce.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending section 10 (MCL 125.2690), as amended by 2005 PA 164.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10. (1) An individual who is a resident of a renaissance
zone or a business that is located and conducts business activity
within a renaissance zone or a person that owns property located in
a renaissance zone is not eligible for the exemption, deduction, or
credit listed in section 9(1) or (2) for that taxable year if 1 or
more of the following apply:
(a) The resident, business, or property owner is delinquent on
December 31 of the prior tax year under 1 or more of the following:
(i) The single business tax act, 1975 PA 228, MCL 208.1 to
208.145.
(ii) The income tax act of 1967, 1967 PA 281, MCL 206.1 to
206.532.
(iii) 1974 PA 198, MCL 207.551 to 207.572.
(iv) The commercial redevelopment act, 1978 PA 255, MCL 207.651
to 207.668.
(v) The enterprise zone act, 1985 PA 224, MCL 125.2101 to
125.2123.
(vi) 1953 PA 189, MCL 211.181 to 211.182.
(vii) The technology park development act, 1984 PA 385, MCL
207.701 to 207.718.
(viii) Part 511 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.51101 to 324.51120.
(ix) The neighborhood enterprise zone act, 1992 PA 147, MCL
207.771 to 207.786.
(x) The city utility users tax act, 1990 PA 100, MCL 141.1151
to 141.1177.
(b) The resident, business, or property owner is substantially
delinquent as defined in a written policy by the qualified local
governmental unit in which the renaissance zone is located on
December 31 of the prior tax year under 1 or both of the following:
(i) The city income tax act, 1964 PA 284, MCL 141.501 to
141.787.
(ii) Taxes, fees, and special assessments collected under the
general property tax act, 1893 PA 206, MCL 211.1 to 211.157.
(c) For residential rental property in a renaissance zone, the
residential rental property is not in substantial compliance with
all applicable state and local zoning, building, and housing laws,
ordinances, or codes and, except as otherwise provided in this
subdivision, the residential rental property owner has not filed an
affidavit before December 31 in the immediately preceding tax year
with the local tax collecting unit in which the residential rental
property is located as required under section 7ff of the general
property tax act, 1893 PA 206, MCL 211.7ff. Beginning December 31,
2004, a residential rental property owner is not required to file
an affidavit if the qualified local governmental unit in which the
residential rental property is located determines that the
residential rental property is in substantial compliance with all
applicable state and local zoning, building, and housing laws,
ordinances, and codes on December 31 of the immediately preceding
tax year.
(d) Beginning January 1, 2006, that individual or business has
been found guilty of a criminal violation or found responsible for
a civil violation under 29 USC 1131 or 1132 in the immediately
preceding 10 years from the date of filing for the exemption,
deduction, or credit described in this act.
(2) An individual who is a resident of a renaissance zone is
eligible for an exemption, deduction, or credit under section 9(1)
and (2) until the department of treasury determines that the
aggregate state and local tax revenue forgone as a result of all
exemptions, deductions, or credits granted under this act to that
individual reaches $10,000,000.00.
(3) A casino located and conducting business activity within a
renaissance zone is not eligible for the exemption, deduction, or
credit listed in section 9(1) or (2). Real property in a
renaissance zone on which a casino is operated, personal property
of a casino located in a renaissance zone, and all property
associated or affiliated with the operation of a casino is not
eligible for the exemption, deduction, or credit listed in section
9(1) or (2). As used in this subsection, "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.
(4) For tax years beginning on or after January 1, 1997, an
individual who is a resident of a renaissance zone shall not be
denied the exemption under subsection (1) if the individual failed
to file a return on or before December 31 of the prior tax year
under subsection (1)(a)(ii) and that individual was entitled to a
refund under that act.
(5) Beginning January 1, 2006, an individual who is a resident
of a renaissance zone or a business entity that is located and
conducts business activity within a renaissance zone or a person
that owns property located in a renaissance zone who is found
guilty of a criminal violation or found responsible for a civil
violation under 29 USC 1131 or 1132 is responsible for the payment
of a penalty described in this subsection. The penalty is equal to
all of the exemptions, deductions, or credits that the individual
or business has taken under this act.