SB-0294, As Passed Senate, December 12, 2007

SUBSTITUTE FOR

SENATE BILL NO. 294

A bill to amend 2005 PA 210, entitled

"Commercial rehabilitation act,"

by amending section 2 (MCL 207.842), as amended by 2006 PA 554.

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 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 or contains a qualified retail food establishment, 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) "Qualified facility" means a qualified retail food

establishment or a building or group of contiguous buildings of

commercial property that is 15 years old or older or has been

allocated for a new markets tax credit under section 45d of 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) "Qualified local governmental unit" means a city, village,

or township.

(j) "Qualified retail food establishment" means property that

meets all of the following:

(i) The property will be used primarily as a retail

supermarket, grocery store, produce market, or delicatessen that

offers fresh USDA-inspected meat and poultry products, fresh fruits

and vegetables, and dairy products for sale to the public.

(ii) The property meets 1 of the following:

(A) Is located in a qualified local governmental unit that is

also located in a qualified local governmental unit as defined in

section 2 of the obsolete property rehabilitation act, 2000 PA 146,

MCL 125.2782, and is located in an underserved area.

(B) Is located in a qualified local governmental unit that is

designated as rural as defined by the United States census bureau

and is located in an underserved area.

(iii) The property was used as residential, commercial, or

Senate Bill No. 294 as amended December 11, 2007

industrial property as allowed and conducted under the applicable

zoning ordinance for the immediately preceding 30 years.

(k) ~~(j)~~ "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 for

a qualified retail food establishment also includes new

construction. 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.

(l) ~~(k)~~ "Taxable value" means the value determined under

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

211.27a.

<<(m) "Underserved area" means an area determined by the Michigan

department of agriculture that contains a low or moderate income census

tract and a below average supermarket density, an area that has a

supermarket customer base with more than 50% living in a low income

census tract, or an area that has demonstrated significant access