February 9, 2010, Introduced by Rep. Slezak and referred to the Committee on Tax Policy.
A bill to amend 2000 PA 146, entitled
"Obsolete property rehabilitation act,"
by amending section 8 (MCL 125.2788), as amended by 2008 PA 504.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8. (1) If the taxable value of the property proposed to
be exempt pursuant to an application under consideration,
considered together with the aggregate taxable value of property
exempt under certificates previously granted and currently in force
under this act or under 1974 PA 198, MCL 207.551 to 207.572,
exceeds 5% of the taxable value of the qualified local governmental
unit, the legislative body of the qualified local governmental unit
shall make a separate finding and shall include a statement in its
resolution approving the application that exceeding that amount
shall not have the effect of substantially impeding the operation
of the qualified local governmental unit or impairing the financial
soundness of an affected taxing unit.
(2) The legislative body of the qualified local governmental
unit shall not approve an application for an obsolete property
exemption certificate unless the applicant complies with all of the
following requirements:
(a) Except as otherwise provided in subsection (3), the
commencement of the rehabilitation of the facility does not occur
before the establishment of the obsolete property rehabilitation
district.
(b) The application relates to a rehabilitation program that
when completed constitutes a rehabilitated facility within the
meaning of this act and that shall be situated within an obsolete
property rehabilitation district established in a qualified local
governmental unit eligible under this act to establish such a
district.
(c) Completion of the rehabilitated facility is calculated to,
and will at the time of issuance of the certificate have the
reasonable likelihood to, increase commercial activity, create
employment, retain employment, prevent a loss of employment,
revitalize urban areas, or increase the number of residents in the
community in which the facility is situated.
(d) The applicant states, in writing, that the rehabilitation
of the facility would not be undertaken without the applicant's
receipt of the exemption certificate.
(e) The applicant is not delinquent in the payment of any
taxes related to the facility.
(3) The legislative body of a qualified local governmental
unit may approve an application for an obsolete property exemption
certificate if the commencement of the rehabilitation of the
facility occurs before the establishment of the obsolete property
rehabilitation district and if 1 or more of the following are met:
(a) All of the following are met:
(i) The building permit for the rehabilitation of the facility
was obtained in October 2002.
(ii) The obsolete property rehabilitation district was created
in April 2002.
(iii) The rehabilitation of the facility included adding
additional stories to the facility.
(b) All of the following are met:
(i) Emergency or temporary repairs or improvements were made
before the establishment of the obsolete property rehabilitation
district.
(ii) The obsolete property rehabilitation district was created
in January 2006.
(iii) The facility is located in a city with a population of
more than 20,500 and less than 27,000 and is located in a county
with a population of more than 95,000 and less than 105,000.
(c) All of the following are met:
(i) Roof repairs or improvements were completed in March 2006
before the establishment of the obsolete property rehabilitation
district.
(ii) The obsolete property rehabilitation district was created
in April 2006.
(iii) The application was submitted to the qualified local
governmental unit in April 2006.
(iv) The facility is located in a city with a population of
more than 10,800 and less than 11,100 and is located in a county
with a population of more than 39,000 and less than 42,000.
(4) Notwithstanding any other provisions of this act, for any
certificate issued as a result of the enactment of the amendatory
act that added subsection (3)(a) and (b), the effective date of the
certificate shall be December 31, 2006.
(5) Notwithstanding any other provisions of this act, for any
certificate issued as a result of the enactment of the amendatory
act that added subsection (3)(c), the effective date of the
certificate shall be December 31, 2006.
(6) Obsolete property rehabilitation exemption certificates
that take effect on or after October 1, 2010 shall include written
provisions that provide that if the owner or lessee of a facility
to whom the certificate is issued relocates the facility outside of
this state during the period in which the certificate is in effect,
then both of the following apply:
(a) That owner or lessee is responsible for the payment of a
penalty described in this subsection. The penalty is equal to the
difference between the obsolete properties tax paid under this act
and the general ad valorem tax that would have been levied if the
certificate had not been granted for each year the certificate was
in effect.
(b) That the owner or lessee consents to the jurisdiction of
the courts of this state for the collection and enforcement of a
penalty described in this subsection.