February 28, 2007, Introduced by Senators JANSEN, VAN WOERKOM, GEORGE, HARDIMAN, THOMAS, ALLEN and SCOTT and referred to the Committee on Economic Development and Regulatory Reform.
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.
(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 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 as a retail supermarket, grocery
store, produce market, or delicatessen that offers 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
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 that contains a low or
moderate income census tract and a below average supermarket
density or an area that has a supermarket customer base with more
than 50% living in a low income census tract or that has
demonstrated significant access limitations due to travel distance,
as determined by the Michigan department of agriculture.