SENATE BILL No. 1394

 

 

June 16, 2010, Introduced by Senator GILBERT and referred to the Committee on Finance.

 

 

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

(MCL 206.1 to 206.532) by adding section 279.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 279. (1) For tax years that begin after December 31, 2010

 

and end before January 1, 2016, a taxpayer that resides within a 1-

 

mile radius of a qualified construction project may claim a credit

 

against the tax imposed by this act equal to the difference between

 

the true cash value of the taxpayer's principal residence before

 

the commencement of the qualified construction project and the true

 

cash value of the taxpayer's principal residence for the tax year

 

in which the credit under this section is claimed.

 

     (2) For purposes of this section, the taxpayer has the burden

 

of proof in establishing the true cash value of his or her


 

principal residence for the tax year in which the credit is sought

 

and in establishing that, other than the commencement of and the

 

ongoing construction related to the qualified construction project,

 

no other factors exist that can be attributed to the decrease in

 

the true cash value of the taxpayer's principal residence.

 

     (3) If the amount of the credit allowed under this section

 

exceeds the tax liability of the taxpayer for the tax year, that

 

excess shall be refunded.

 

     (4) As used in this section:

 

     (a) "Qualified construction project" means a state

 

construction project that has been approved by the federal

 

government for the expansion of a United States port of entry in

 

this state which includes a new bridge plaza and improvements to

 

adjacent roads.

 

     (b) "True cash value" means that term as defined in section 27

 

of the general property tax act, 1893 PA 206, MCL 211.27.