June 19, 2008, Introduced by Rep. Johnson 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), 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, or vacant
property that will be used as commercial property if that vacant
property has been vacant for not less than 15 years and is located
in a qualified local governmental unit as that term is defined in
section 2 of the obsolete property rehabilitation act, 2000 PA 146,
MCL 125.2782. 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, except as
otherwise provided in this act, a city, village, or township.
(j)
"Rehabilitation" means changes 1 of the following:
(i) 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.
(ii) New construction of a qualified facility that is located
in a qualified local governmental unit as that term is defined in
section 2 of the obsolete property rehabilitation act, 2000 PA 146,
MCL 125.2782.
(k) "Taxable value" means the value determined under section
27a of the general property tax act, 1893 PA 206, MCL 211.27a.