May 24, 2005, Introduced by Senator THOMAS and referred to the Committee on Finance.
A bill to amend 1992 PA 147, entitled
"Neighborhood enterprise zone act,"
by amending sections 12 and 13 (MCL 207.782 and 207.783), section
12 as amended by 2004 PA 396.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 12. (1) Except as otherwise provided in this section,
unless earlier revoked as provided in section 11, a neighborhood
enterprise zone certificate issued before January 1, 2005 shall
remain in effect for 6 to 12 years and a neighborhood enterprise
zone certificate issued after December 31, 2004 shall remain in
effect for 6 to 15 years from the effective date of the certificate
as determined by the governing body of the local governmental unit.
The governing body of a local governmental unit that issued a
neighborhood enterprise zone certificate for a new facility or a
rehabilitated facility before January 1, 2005 may extend the
certificate for an additional 3 years if the extension is approved
by resolution before the original neighborhood enterprise zone
certificate expires. If the homestead facility, new facility, or
rehabilitated facility is sold or transferred to another owner who
otherwise complies with this act and, for a homestead facility or a
new facility, uses the homestead facility or the new facility as a
principal residence, the certificate shall remain in effect.
(2) If a rehabilitated facility was sold before December 29,
1994 and a certificate was in effect for that facility at the time
of the sale, and the new owner of the rehabilitated facility
otherwise complies with this act, the certificate shall be
reinstated and remain in effect for the remainder of the original
period described in subsection (1), unless earlier revoked under
section 11.
(3) Except as provided in subsection (4), a change in
ownership of a rehabilitated facility constituting all or a portion
of a qualified historic building, occurring after the effective
date of a neighborhood enterprise zone certificate for that
rehabilitated facility, shall not affect the validity of that
neighborhood enterprise zone certificate, and the certificate shall
remain in effect for the period specified in this section as long
as the rehabilitated facility has as its primary purpose
residential housing.
(4) Unless revoked earlier as provided in section 11, a
neighborhood enterprise zone certificate in effect for a
rehabilitated facility constituting all or a portion of a qualified
historic building shall remain in effect for 11 to 17 years from
the effective date of the certificate as determined by the
governing body of the local governmental unit. However, if a
rehabilitated facility constituting all or a portion of a qualified
historic building is not transferred or sold to a person who will
own and occupy the rehabilitated facility as his or her principal
residence within 6 years of the effective date of the neighborhood
enterprise zone certificate, the neighborhood enterprise zone
certificate is revoked.
Sec. 13. (1) The assessor of each local governmental unit in
which is located a homestead facility, a new facility, or a
rehabilitated facility for which a neighborhood enterprise zone
certificate is in effect shall determine annually, with respect to
each homestead facility, new facility, or rehabilitated facility,
the assessed valuation of the property comprising the facility
having the benefit of a neighborhood enterprise zone certificate
and the amount of ad valorem property tax that would have been paid
with respect to each homestead facility, new facility, and
rehabilitated
facility under the general property tax act, Act No.
206
of the Public Acts of 1893, being sections 211.1 to 211.157 of
the
Michigan Compiled Laws 1893 PA 206, MCL 211.1
to 211.157, if
the certificate had not been in force, and the assessed valuation
on which the neighborhood enterprise zone tax is based for a
homestead facility or a rehabilitated facility. A holder of a
certificate shall furnish to the assessor the information necessary
for the determination.
(2) After making the determinations under subsection (1), the
assessor shall send annually notification of those determinations
to the Michigan enterprise zone authority and the governing body of
each taxing unit that levies taxes upon property in the local
governmental unit in which the new facility or rehabilitated
facility is located and the holder of the certificate for which the
determination is made. The notice shall be sent by certified mail
not later than October 15 and shall be based upon the valuation as
of the immediately preceding December 31.