HOUSE BILL No. 6506

 

September 24, 2008, Introduced by Rep. Hildenbrand and referred to the Committee on New Economy and Quality of Life.

 

     A bill to amend 1996 PA 376, entitled

 

"Michigan renaissance zone act,"

 

by amending section 10 (MCL 125.2690), as amended by 2008 PA 242.

 

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) Former 1975 PA 228 or the Michigan business tax act, 2007

 

PA 36, MCL 208.1101 to 208.1601.


 

     (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 211.155.

 

     (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.

 

     (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, 1996

 

IL 1, 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) A business that is located and conducts business activity

 

within a renaissance zone shall not be denied the exemption under

 

subsection (1) if the business failed to file a return on or before

 

December 31 of the prior tax year under subsection (1)(a)(i) and

 

that business had no tax liability under that act for the tax year

 

for which the return was not filed.

 

     (6) In an aerotropolis development zone, only property owned

 

or leased by a qualified aerotropolis business and business

 

activity conducted in an aerotropolis development zone by a

 

qualified aerotropolis business are eligible for the exemptions,

 

deductions, or credits described in section 9.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 94th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 6502(request no.

 

07377'08 **).

 

     (b) Senate Bill No.____ or House Bill No. 6503(request no.


 

07781'08 **).

 

     (c) Senate Bill No.____ or House Bill No. 6504(request no.

 

07806'08 **).

 

     (d) Senate Bill No.____ or House Bill No. 6505(request no.

 

07807'08 **).

 

     (e) Senate Bill No.____ or House Bill No. 6507(request no.

 

08281'08 *).

 

     (f) Senate Bill No.____ or House Bill No. 6508(request no.

 

08282'08 *).

 

     (g) Senate Bill No.____ or House Bill No. 6509(request no.

 

08283'08 *).

 

     (h) Senate Bill No.____ or House Bill No. 6510(request no.

 

08284'08 *).

 

     (i) Senate Bill No.____ or House Bill No. 6511(request no.

 

08285'08 *).