December 6, 2007, Introduced by Senators RICHARDVILLE, ALLEN, SANBORN, KUIPERS, GILBERT, BIRKHOLZ, HUNTER, STAMAS, BROWN, HARDIMAN, KAHN, CLARK-COLEMAN, CLARKE, GEORGE, BARCIA, PAPPAGEORGE, JACOBS, THOMAS and SCOTT and referred to the Committee on Commerce and Tourism.
A bill to amend 1978 PA 255, entitled
"Commercial redevelopment act,"
by amending sections 4, 12, and 18 (MCL 207.654, 207.662, and
207.668), section 12 as amended by 1998 PA 243 and section 18 as
amended by 1984 PA 342, and by adding section 12a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) "Local governmental unit" means, except as
otherwise provided in this subsection, a city, village, or
township. For local governmental units designating a commercial
redevelopment district after June 30, 2008, local governmental unit
means a city or village.
(2) "New facility" means 1 of the following:
(a) Through June 30, 2008, new commercial property other than
a replacement facility to be built in a redevelopment district.
(b) Beginning July 1, 2008, new commercial property other than
a replacement facility to be built in a redevelopment district that
meets all of the following:
(i) Is located on property that is zoned to allow for mixed use
that includes high-density residential use.
(ii) Is located in a downtown district as defined in section 1
of 1975 PA 197, MCL 125.1651.
(iii) The local governmental unit in which the new facility is
to be located agrees to all of the following:
(A) To expedite the local permitting and inspection process in
the commercial rehabilitation district.
(B) To modify its master plan to provide for walkable
nonmotorized interconnections, including sidewalks and streetscapes
throughout the commercial redevelopment district.
(3) "Obsolete commercial property" means commercial property
the condition of which is impaired due to changes in design,
construction, technology, or improved production processes, or
damage due to fire, natural disaster, or general neglect.
(4) "Replacement" means the complete or partial demolition of
obsolete commercial property and the complete or partial
reconstruction or installation of new property of similar utility.
(5) "Replacement facility" means 1 of the following:
(a) Through June 30, 2008, commercial property on the same or
contiguous land within the district which land is or is to be
acquired, constructed, altered, or installed for the purpose of
being substituted for obsolete commercial property together with
any
part of the old altered property which that remains for use as
commercial property after the replacement.
(b) Beginning July 1, 2008, commercial property on the same or
contiguous land within the district which land is or is to be
acquired, constructed, altered, or installed for the purpose of
being substituted for obsolete commercial property and any part of
the old altered property that remains for use as commercial
property after the replacement, that meets all of the following:
(i) Is located on property that is zoned to allow for mixed use
that includes high-density residential use.
(ii) Is located in a downtown district as defined in section 1
of 1975 PA 197, MCL 125.1651.
(iii) Is located in a local governmental unit that agrees to all
of the following:
(A) To expedite the local permitting and inspection process in
the commercial rehabilitation district.
(B) To modify its master plan to provide for walkable
nonmotorized interconnections, including sidewalks and streetscapes
throughout the commercial redevelopment district.
(6) "Restoration" means changes to obsolete commercial
property other than replacement as may be required to restore the
property, together with all appurtenances thereto, to an
economically
efficient condition. Restoration shall include
includes
major renovation 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 the
commercial property to an economically efficient condition.
Restoration
shall does not include improvements aggregating less
than 10% of the true cash value of the property at commencement of
the restoration of the commercial property.
(7) "Restored facility" means a facility that has undergone
restoration.
(8) "State equalized valuation" means the valuation determined
under
Act No. 44 of the Public Acts of 1911, as amended, being
sections
209.1 to 209.8 of the Michigan Compiled Laws 1911 PA 44,
MCL 209.1 to 209.8.
Sec. 12. (1) Except as provided in subsection (9), there is
levied upon every owner of a new, replacement, or restored facility
to which a commercial facilities exemption certificate is issued a
specific tax to be known as the commercial facilities tax.
(2) The amount of the commercial facilities tax, in each year,
in the case of a restored facility shall be determined by
multiplying the total mills levied as ad valorem taxes for that
year by all taxing units within which the facility is located by
the state equalized valuation of the obsolete commercial property
for the tax year immediately preceding the effective date of the
commercial facilities exemption certificate after deducting the
state equalized valuation of the land and of personal property
other than personal property assessed pursuant to section 14(6) of
the general property tax act, 1893 PA 206, MCL 211.14.
(3) The amount of the commercial facilities tax, in each year,
in the case of a new or replacement facility shall be determined by
multiplying the state equalized valuation of the facility excluding
the land and personal property other than personal property
assessed pursuant to section 14(6) of the general property tax act,
1893 PA 206, MCL 211.14, by the sum of 1/2 of the total mills
levied as ad valorem taxes for that year by all taxing units within
which the facility is located other than mills levied for school
operating purposes by a local or intermediate school district
within which the facility is located or mills levied under the
state education tax act, 1993 PA 331, MCL 211.901 to 211.906, plus
1/2
of the number of mills levied for
school operating purposes in
1993.
(4) The commercial facilities tax shall be collected,
disbursed, and assessed in accordance with this act.
(5) The commercial facilities tax is an annual tax, payable at
the same times, in the same installments, and to the same officer
or officers as taxes imposed under the general property tax act,
1893
PA 206, MCL 211.1 to 211.157 211.155, are payable. Except as
otherwise provided in this section, the officer or officers shall
disburse the commercial facilities tax payments received by the
officer or officers each year to and among the state, cities,
townships, villages, school districts, counties, and authorities,
at the same times and in the same proportions as required by law
for the disbursement of taxes collected under the general property
tax
act, 1893 PA 206, MCL 211.1 to 211.157 211.155. To determine
the proportion for the disbursement of taxes under this subsection
and for attribution of taxes under subsection (7) for taxes
collected pursuant to commercial facilities exemption certificates
issued before January 1, 1994, the number of mills levied for local
school district operating purposes to be used in the calculation
shall equal the number of mills for local school district operating
purposes levied in 1993 minus the number of mills levied under the
state education tax act, 1993 PA 331, MCL 211.901 to 211.906, for
the year for which the disbursement is calculated.
(6) Except as provided in subsection (7), for intermediate
school districts receiving state aid under sections 56, 62, and 81
of the state school aid act of 1979, 1979 PA 94, MCL 388.1656,
388.1662, and 388.1681, of the amount that would otherwise be
disbursed to an intermediate school district, all or a portion, to
be determined on the basis of the tax rates being utilized to
compute the amount of state aid, shall be paid to the state
treasury to the credit of the state school aid fund established by
section 11 of article IX of the state constitution of 1963. If the
sum of any industrial facility taxes prescribed by 1974 PA 198,
207.551 to 207.572, and the commercial facilities taxes paid to the
state treasury to the credit of the state school aid fund that
would otherwise be disbursed to the local or intermediate school
district, pursuant to section 11 of 1974 PA 198, MCL 207.561, and
this section, exceeds the amount received by the local or
intermediate school district under sections 56, 62, and 81 of the
state school aid act of 1979, 1979 PA 94, MCL 388.1656, 388.1662,
and 388.1681, the department of treasury shall allocate to each
eligible local or intermediate school district an amount equal to
the difference between the sum of the industrial facility taxes and
the commercial facilities taxes paid to the state treasury to the
credit of the state school aid fund and the amount the local or
intermediate school district received under sections 56, 62, and 81
of the state school aid act of 1979, 1979 PA 94, MCL 388.1656,
388.1662, and 388.1681. This subsection applies to taxes levied
before 1994.
(7) For commercial facilities taxes levied after 1993 for
school operating purposes, the amount that would otherwise be
disbursed to a local school district shall be paid instead to the
state treasury and credited to the state school aid fund
established by section 11 of article IX of the state constitution
of 1963.
(8) The officer or officers shall send a copy of the amount of
disbursement made to each unit under this section to the commission
on a form provided by the commission.
(9) A new, replacement, or restored facility located in a
renaissance zone under the Michigan renaissance zone act, 1996 PA
376, MCL 125.2681 to 125.2696, is exempt from the commercial
facilities tax levied under this act to the extent and for the
duration provided pursuant to the Michigan renaissance zone act,
1996 PA 376, MCL 125.2681 to 125.2696, except for that portion of
the commercial facilities tax attributable to a special assessment
or a tax described in section 7ff(2) of the general property tax
act, 1893 PA 206, MCL 211.7ff. The commercial facilities tax
calculated under this subsection shall be disbursed proportionately
to the local taxing unit or units that levied the special
assessment or the tax described in section 7ff(2) of the general
property tax act, 1893 PA 206, MCL 211.7ff.
(10) As used in this act, facility does not include a casino.
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, the
Initiated
Law of 1996 1996 IL 1, MCL 432.201 to 432.216 432.226.
Sec. 12a. (1) Within 60 days after the granting of a new
commercial facilities exemption certificate under section 8 for a
new or a replacement facility, the state treasurer may, for a
period not to exceed 6 years, exclude up to 1/2 of the number of
mills levied under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906, from the specific tax calculation on the
facility under section 12(3) if the state treasurer determines that
reducing the number of mills used to calculate the specific tax
under section 12(3) is necessary to reduce unemployment, promote
economic growth, and increase capital investment in qualified local
governmental units.
(2) The state treasurer shall not grant more than 25
exclusions under this section each year.
Sec. 18. A new exemption shall not be granted under this act
after
December 31, 1985 2020, but an exemption then in effect shall
continue until the expiration of the exemption certificate.