August 22, 2007, Introduced by Reps. Bieda and Rocca and referred to the Committee on New Economy and Quality of Life.
A bill to amend 2005 PA 210, entitled
"Commercial rehabilitation act,"
by amending sections 2 and 3 (MCL 207.842 and 207.843), section 2
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 as determined by the legislative body of the
qualified local governmental unit, the district may be less than 3
acres in size.
(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) "Multifamily residential use" means multifamily housing
consisting of 5 or more units.
(h) "Qualified facility" means 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
1996 IL 1, MCL 432.201 to 432.226.
(i) "Qualified local governmental unit" means a city, village,
or township.
(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
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.
(k) "Taxable value" means the value determined under section
27a of the general property tax act, 1893 PA 206, MCL 211.27a.
Sec. 3. (1) A qualified local governmental unit, by resolution
of its legislative body, may establish 1 or more qualified
rehabilitation districts that may consist of 1 or more parcels or
tracts of land or a portion of a parcel or tract of land, if at the
time the resolution is adopted, the parcel or tract of land or
portion of a parcel or tract of land within the district is a
qualified facility.
(2) The legislative body of a qualified local governmental
unit may establish a commercial rehabilitation district on its own
initiative or upon a written request filed by the owner or owners
of property comprising at least 50% of all taxable value of the
property located within a proposed commercial rehabilitation
district. The written request must be filed with the clerk of the
qualified local governmental unit.
(3) Before adopting a resolution establishing a commercial
rehabilitation district, the legislative body shall give written
notice by certified mail to the county in which the proposed
district is to be located and the owners of all real property
within the proposed commercial rehabilitation district and shall
afford an opportunity for a hearing on the establishment of the
commercial rehabilitation district at which any of those owners and
any other resident or taxpayer of the qualified local governmental
unit may appear and be heard. The legislative body shall give
public notice of the hearing not less than 10 days or more than 30
days before the date of the hearing.
(4) The legislative body of the qualified local governmental
unit, in its resolution establishing a commercial rehabilitation
district, shall set forth a finding and determination that the
district meets the requirements set forth in subsection (1) and
shall provide a copy of the resolution by certified mail to the
county in which the district is located.
(5) Within 28 days after receiving a copy of the resolution
establishing a commercial rehabilitation district that was
established before October 1, 2007, the county may reject the
establishment of the district by 1 of the following methods:
(a) If the county has an elected county executive, by written
notification to the qualified local governmental unit.
(b) If the county does not have an elected county executive,
by a resolution of the county board of commissioners provided to
the qualified local governmental unit.