July 1, 2010, Introduced by Senator BROWN and referred to the Committee on Senior Citizens and Veterans Affairs.
A bill to provide for the development and rehabilitation of
residential housing; to provide for the creation of senior
enterprise zones; to provide for obtaining senior enterprise zone
certificates for a period of time and to prescribe the contents of
the certificates; to provide for the exemption of certain taxes; to
provide for the levy and collection of a specific tax on the owner
of certain facilities; and to prescribe the powers and duties of
certain officers of the state and local governmental units.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"senior enterprise zone act".
Sec. 2. As used in this act:
(a) "Commission" means the state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(b) "Condominium unit" means that portion of a structure
intended for separate ownership, intended for residential use, and
established pursuant to the condominium act, 1978 PA 59, MCL
559.101 to 559.276. Condominium units within a qualified historic
building may be held under common ownership.
(c) "Developer" means a person who is the owner of a new
facility at the time of construction or of a rehabilitated facility
at the time of rehabilitation for which a neighborhood enterprise
zone certificate is applied for or issued.
(d) "Facility" means a homestead facility, a new facility, or
a rehabilitated facility.
(e) "Homestead facility" means 1 of the following:
(i) An existing structure, purchased by or transferred to an
owner after December 31, 1996, that has as its primary purpose
residential housing consisting of 1 or 2 units, 1 of which is
occupied by an owner as his or her principal residence and that is
located within a subdivision platted pursuant to state law before
January 1, 1968 other than an existing structure for which a
certificate will or has been issued after December 31, 2006 in a
city with a population of 750,000 or more, is located within a
subdivision platted pursuant to state law before January 1, 1968.
(ii) An existing structure that has as its primary purpose
residential housing consisting of 1 or 2 units, 1 of which is
occupied by an owner as his or her principal residence that is
located in a subdivision platted after January 1, 1999 and is
located in a county with a population of more than 400,000 and less
than 500,000 according to the most recent decennial census and is
located in a city with a population of more than 100,000 and less
than 125,000 according to the most recent decennial census.
(f) "Local governmental unit" means a qualified local
governmental unit as that term is defined under section 2 of the
obsolete property rehabilitation act, 2000 PA 146, MCL 125.2782, or
a county seat.
(g) "New facility" means 1 or both of the following:
(i) A new structure or a portion of a new structure that has as
its primary purpose residential housing consisting of 1 or 2 units,
1 of which is or will be occupied by an owner as his or her
principal residence. New facility includes a model home or a model
condominium unit. New facility includes a new individual
condominium unit, in a structure with 1 or more condominium units,
that has as its primary purpose residential housing and that is or
will be occupied by an owner as his or her principal residence.
Except as provided in subparagraph (ii), new facility does not
include apartments.
(ii) A new structure or a portion of a new structure that meets
all of the following:
(A) Is rented or leased or is available for rent or lease.
(B) Is a mixed use building or located in a mixed use building
that contains retail business space on the street level floor.
(C) Is located in a qualified downtown revitalization
district.
(h) "Owner" means the record title holder of, or the vendee of
the original land contract pertaining to, a new facility, a
homestead facility, or a rehabilitated facility for which a
neighborhood enterprise zone certificate is applied for or issued.
(i) "Qualified assessing authority" means 1 of the following:
(i) For a facility other than a homestead facility, the
commission.
(ii) For a homestead facility, the assessor of the local
governmental unit in which the homestead facility is located.
(j) "Qualified downtown revitalization district" means an area
located within 1 or more of the following:
(i) The boundaries of a downtown district as defined in section
1 of 1975 PA 197, MCL 125.1651.
(ii) The boundaries of a principal shopping district or a
business improvement district as defined in section 1 of 1961 PA
120, MCL 125.981.
(iii) The boundaries of the local governmental unit in an area
that is zoned and primarily used for business as determined by the
local governmental unit.
(k) "Qualified historic building" means a property within a
neighborhood enterprise zone that has been designated a historic
resource as defined under section 266 of the income tax act of
1967, 1967 PA 281, MCL 206.266.
(l) "Rehabilitated facility" means an existing structure or a
portion of an existing structure with a current true cash value of
$80,000.00 or less per unit that has or will have as its primary
purpose residential housing, consisting of 1 to 8 units, the owner
of which proposes improvements that if done by a licensed
contractor would cost in excess of $5,000.00 per owner-occupied
unit or 50% of the true cash value, whichever is less, or $7,500.00
per nonowner-occupied unit or 50% of the true cash value, whichever
is less, or the owner proposes improvements that would be done by
the owner and not a licensed contractor and the cost of the
materials would be in excess of $3,000.00 per owner-occupied unit
or $4,500.00 per nonowner-occupied unit and will bring the
structure into conformance with minimum local building code
standards for occupancy or improve the livability of the units
while meeting minimum local building code standards. Rehabilitated
facility also includes an individual condominium unit, in a
structure with 1 or more condominium units that has as its primary
purpose residential housing, the owner of which proposes the above
described improvements. Rehabilitated facility also includes
existing or proposed condominium units in a qualified historic
building with 1 or more existing or proposed condominium units.
Rehabilitated facility does not include a facility rehabilitated
with the proceeds of an insurance policy for property or casualty
loss. A qualified historic building may contain multiple
rehabilitated facilities.
(m) "Senior enterprise zone certificate" or "certificate"
means a certificate issued pursuant to sections 4, 5, and 6.
Sec. 3. (1) The governing body of a local governmental unit by
resolution may designate 1 or more senior enterprise zones within
that local governmental unit. Except as otherwise provided in this
subsection, a senior enterprise zone shall contain not fewer than
10 platted parcels of land. A senior enterprise zone located in a
qualified downtown revitalization district may contain fewer than
10 platted parcels if the platted parcels together contain 10 or
more facilities. All the land within a senior enterprise zone shall
also be compact and contiguous. Contiguity is not broken by a road,
right-of-way, or property purchased or taken under condemnation if
the purchased or condemned property was a single parcel prior to
the sale or condemnation.
(2) The total acreage of the senior enterprise zones
containing only new facilities or rehabilitated facilities or any
combination of new facilities or rehabilitated facilities
designated under this act shall not exceed 15% of the total acreage
contained within the boundaries of the local governmental unit. The
total acreage of the senior enterprise zones containing only
homestead facilities designated under this act shall not exceed 10%
of the total acreage contained within the boundaries of the local
governmental unit or, with the approval of the board of
commissioners of the county in which the senior enterprise zone is
located if the county does not have an elected or appointed county
executive or with the approval of the board of commissioners and
the county executive of the county in which the senior enterprise
zone is located if the county has an elected or appointed county
executive, 15% of the total acreage contained within the boundaries
of the local governmental unit.
(3) Not less than 60 days before the passage of a resolution
designating a senior enterprise zone or the repeal or amendment of
a resolution under subsection (5), the clerk of the local
governmental unit shall give written notice to the assessor and to
the governing body of each taxing unit that levies ad valorem
property taxes in the proposed senior enterprise zone. Before
acting upon the resolution, the governing body of the local
governmental unit shall make a finding that a proposed senior
enterprise zone is consistent with the master plan of the local
governmental unit and the neighborhood preservation and economic
development goals of the local governmental unit. The governing
body before acting upon the resolution shall also adopt a statement
of the local governmental unit's goals, objectives, and policies
relative to the maintenance, preservation, improvement, and
development of housing for all persons regardless of income level
living within the proposed senior enterprise zone. In addition, the
governing body before acting upon the resolution shall make
specific finding on the availability of health care retail
resources, lifelong learning opportunities, effect of geographic
location, and cultural amenities for seniors who could reside
within the proposed senior enterprise zone. Additionally, before
acting upon the resolution, the governing body of a local
governmental unit with a population greater than 20,000 shall pass
a housing inspection ordinance. A local governmental unit with a
population of 20,000 or less may pass a housing inspection
ordinance. Before the sale of a unit in a new or rehabilitated
facility for which a senior enterprise zone certificate is in
effect, an inspection shall be made of the unit to determine
compliance with any local construction or safety codes and that a
sale may not be finalized until there is compliance with those
local construction or safety codes. The governing body shall hold a
public hearing not later than 45 days after the date the notice is
sent but before acting upon the resolution.
(4) Upon receipt of a notice under subsection (3), the
assessor shall determine and furnish to the governing body of the
local governmental unit the amount of the true cash value of the
property located within the proposed senior enterprise zone and any
other information considered necessary by the governing body.
(5) A resolution designating a senior enterprise zone, other
than a zone designated under subsection (2), may be repealed or
amended not sooner than 3 years after the date of adoption or of
the most recent amendment of the resolution by the governing body
of the local governmental unit. The repeal or amendment of the
resolution shall take effect 6 months after adoption. However, an
action taken under this subsection does not invalidate a
certificate that is issued or in effect and a facility for which a
certificate is issued or in effect shall continue to be included in
the total acreage limitations under this section until the
certificate is expired or revoked.
Sec. 4. (1) The owner of a homestead facility or owner or
developer or prospective owner or developer of a proposed new
facility or an owner or developer or prospective developer
proposing to rehabilitate property located in a senior enterprise
zone may file an application for a senior enterprise zone
certificate with the clerk of the local governmental unit. The
application shall be filed in the manner and form prescribed by the
commission. The clerk of the local governmental unit shall provide
a copy of each homestead facility application to the assessor for
the local governmental unit. Except as otherwise provided by the
local governmental unit by resolution if the application is filed
not later than 6 months following the date the building permit is
issued, the application shall be filed before a building permit is
issued for the new construction or rehabilitation of the facility.
(2) The application shall contain or be accompanied by all of
the following:
(a) A general description of the homestead facility, new
facility, or proposed rehabilitated facility.
(b) The dimensions of the parcel on which the homestead
facility, new facility, or proposed rehabilitated facility is or is
to be located.
(c) The general nature and extent of the construction to be
undertaken.
(d) A time schedule for undertaking and completing the
rehabilitation of property or the construction of the new facility.
(e) A statement by the owner of a homestead facility that the
owner is committed to investing a minimum of $500.00 in the first 3
years that the certificate for a homestead facility is in effect
and committed to documenting the minimum investment if required to
do so by the assessor of the local governmental unit.
(f) Any other information required by the local governmental
unit.
Sec. 5. Not more than 60 days after receipt by its clerk of an
application under section 4, the governing body of the local
governmental unit by resolution shall approve the application for a
senior enterprise zone certificate. The clerk shall forward the
application to the qualified assessing authority.
Sec. 6. Not later than 60 days after receipt of an approved
application for a homestead facility or a rehabilitated facility,
and not later than 30 days, or if an approved application is
received after October 31, not later than 45 days after receipt of
an approved application for a new facility, the qualified assessing
authority shall determine whether the homestead facility, new
facility, or rehabilitated facility complies with the requirements
of this act. If the qualified assessing authority finds compliance,
the qualified assessing authority shall issue a senior enterprise
zone certificate to the applicant and send a certified copy of the
certificate to each affected taxing unit. The assessor shall keep
the certificate filed on record in his or her office. The qualified
assessing authority shall maintain a record of all certificates
filed. Notice of the qualified assessing authority's refusal to
issue a certificate shall be sent by certified mail to the same
persons.
Sec. 7. (1) The commission shall not issue a senior enterprise
zone certificate for a new facility unless the new facility meets
the requirements of the definition in section 2(g).
(2) The commission shall not issue a senior enterprise zone
certificate for a rehabilitated facility unless the rehabilitated
facility meets the requirements of the definition in section 2(k).
(3) The assessor of the local governmental unit shall not
issue a senior enterprise zone certificate for a homestead facility
unless the homestead facility meets the requirements of the
definition in section 2(e).
Sec. 8. A senior enterprise zone certificate shall be in the
form prescribed and provided by the commission and shall include
the following:
(a) A legal description of the real property on which the new
facility is to be located or the legal description of the homestead
facility or the rehabilitated property.
(b) A statement that unless revoked under this act, the
certificate shall remain in effect for the period stated in the
certificate.
Sec. 9. (1) Except as provided in subsection (14), there is
levied on the owner of a homestead facility, a new facility, or a
rehabilitated facility to which a senior enterprise zone
certificate is issued a specific tax known as the senior enterprise
zone tax.
(2) A homestead facility, a new facility, or a rehabilitated
facility for which a senior enterprise zone certificate is in
effect, but not the land on which the facility is located, is
exempt from ad valorem real property taxes collected under the
general property tax act, 1893 PA 206, MCL 211.1 to 211.157.
(3) Except as otherwise provided in this section, the amount
of the senior enterprise zone tax on a new facility is determined
each year by multiplying the taxable value of the facility, not
including the land, by 1 of the following:
(a) For property that would otherwise meet the definition of a
principal residence under section 7dd of the general property tax
act, 1893 PA 206, MCL 211.7dd, if that property was not exempt from
ad valorem property taxes under this act, 1/2 of the average rate
of taxation levied in this state in the immediately preceding
calendar year on a principal residence and qualified agricultural
property as defined in section 7dd of the general property tax act,
1893 PA 206, MCL 211.7dd.
(b) For property that is not a principal residence under
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd, 1/2 of the average rate of taxation levied upon
commercial, industrial, and utility property upon which ad valorem
taxes are assessed as determined for the immediately preceding
calendar year by the state board of assessors under section 13 of
1905 PA 282, MCL 207.13.
(4) Except as otherwise provided in this section, the amount
of the neighborhood enterprise zone tax on a rehabilitated facility
is determined each year by multiplying the taxable value of the
rehabilitated facility, not including the land, for the tax year
immediately preceding the effective date of the senior enterprise
zone certificate by the total mills collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155, for the
current year by all taxing units within which the rehabilitated
facility is located.
(5) Except as otherwise provided in this section, the amount
of the senior enterprise zone tax on a homestead facility is the
sum of all the following:
(a) One-half the number of mills levied for operating purposes
by the local governmental unit in which the senior enterprise zone
is located multiplied by the current taxable value of the homestead
facility not including the land.
(b) One-half the number of mills levied for operating purposes
by the county in which the senior enterprise zone is located
multiplied by the current taxable value of the homestead facility
not including the land.
(c) The total number of mills collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155, for the
current year by all taxing jurisdictions within which the homestead
facility is located excluding the number of mills levied for
operating purposes by the local governmental unit and county in
which the homestead facility is located multiplied by the current
taxable value of the homestead facility not including the land.
(6) In the year 2 years before the year in which the senior
enterprise zone certificate expires for a homestead facility or for
a new facility, the senior enterprise zone tax is the sum of all of
the following:
(a) Five-eighths the number of mills levied for operating
purposes by the local governmental unit in which the senior
enterprise zone is located multiplied by the current taxable value
of the facility not including the land.
(b) Five-eighths the number of mills levied for operating
purposes by the county in which the senior enterprise zone is
located multiplied by the current taxable value of the facility not
including the land.
(c) The total number of mills collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155, for the
current year by all taxing jurisdictions within which the facility
is located excluding the number of mills levied for operating
purposes by the local governmental unit and county in which the
facility is located multiplied by the current taxable value of the
facility not including the land.
(7) In the year before the year in which the senior enterprise
zone certificate expires for a homestead facility or for a new
facility, the senior enterprise zone tax is the sum of all the
following:
(a) Three-fourths the number of mills levied for operating
purposes by the local governmental unit in which the senior
enterprise zone is located multiplied by the current taxable value
of the facility not including the land.
(b) Three-fourths the number of mills levied for operating
purposes by the county in which the senior enterprise zone is
located multiplied by the current taxable value of the facility not
including the land.
(c) The total number of mills collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155, for the
current year by all taxing jurisdictions within which the facility
is located excluding the number of mills levied for operating
purposes by the local governmental unit and county in which the
facility is located multiplied by the current taxable value of the
facility not including the land.
(8) In the year in which the senior enterprise zone
certificate expires for a homestead facility or for a new facility,
the senior enterprise zone tax is the sum of all the following:
(a) Seven-eighths the number of mills levied for operating
purposes by the local governmental unit in which the senior
enterprise zone is located multiplied by the current taxable value
of the facility not including the land.
(b) Seven-eighths the number of mills levied for operating
purposes by the county in which the senior enterprise zone is
located multiplied by the current taxable value of the facility not
including the land.
(c) The total number of mills collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155, for the
current year by all taxing jurisdictions within which the facility
is located excluding the number of mills levied for operating
purposes by the local governmental unit and county in which the
facility is located multiplied by the current taxable value of the
facility not including the land.
(9) The senior enterprise zone tax is an annual tax, payable
at the same times, in the same installments, and to the same
officer or officers as taxes collected under the general property
tax act, 1893 PA 206, MCL 211.1 to 211.155, are payable. Except as
otherwise provided in this section, the officer or officers shall
disburse the senior enterprise zone tax received by the officer or
officers each year to the state, cities, townships, villages,
school districts, counties, and authorities at the same times and
in the same proportions as required for the disbursement of taxes
collected under the general property tax act, 1893 PA 206, MCL
211.1 to 211.155. To determine the proportion for the disbursement
of taxes under this subsection and for attribution of taxes under
subsection (11), local tax collection officers shall disburse the
proceeds of the senior enterprise zone tax collected on homestead
facilities under subsection (5) and on homestead facilities, new
facilities, and rehabilitated facilities under subsections (6),
(7), and (8) each year to the state, cities, townships, villages,
school districts, counties, and authorities in an amount equal to
the sum of the proceeds of the senior enterprise zone tax collected
on the facility multiplied by a fraction in which the numerator is
the number of mills levied by the taxing unit that was used to
calculate the specific tax on the facility and the denominator is
the total number of mills levied by all the taxing units that was
used to calculate the specific tax in which the property is
located.
(10) An intermediate school district 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 or retained by the 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 and for the period that the state
school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, is
amended or its successor act is enacted or amended to include a
provision that provides for adjustments in state school aid to
account for the receipt of revenues provided under this act in
place of exempted ad valorem property tax, revenues required to be
remitted or returned to the state treasury to the credit of the
state school aid fund shall be distributed instead to the
intermediate school districts. If the sum of any industrial
facility tax levied under 1974 PA 198, MCL 207.551 to 207.572, the
commercial facilities tax levied under the commercial redevelopment
act, 1978 PA 255, MCL 207.651 to 207.668, the neighborhood
enterprise zone tax levied under the neighborhood enterprise zone
act, 1992 PA 147, MCL 207.771 to 207.787, and the senior enterprise
zone tax paid to the state treasury to the credit of the state
school aid fund that would otherwise be disbursed to the
intermediate school district exceeds the amount received by the
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 intermediate school district an amount equal to the
difference between the sum of the industrial facility tax, the
commercial facilities tax, the neighborhood enterprise zone tax,
and the senior enterprise zone tax paid to the state treasury to
the credit of the state school aid fund and the amount the
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.
(11) For senior enterprise zone taxes levied 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.
(12) 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. The senior
enterprise zone tax is a lien on the real property upon which the
new facility or rehabilitated facility subject to the certificate
is located until paid. The continuance of a certificate is
conditional upon the annual payment of the senior enterprise zone
tax and the ad valorem tax on the land collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(13) If payment of the tax under this act is not made by the
March 1 following the levy of the tax, the tax shall be turned over
to the county treasurer and collected in the same manner as a
delinquent tax under the general property tax act, 1893 PA 206, MCL
211.1 to 211.155.
(14) A homestead facility, a new facility, or a rehabilitated
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 senior enterprise zone 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 senior enterprise zone 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 senior
enterprise zone 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.
Sec. 10. (1) Except as provided in subsections (2) and (3),
the effective date of the senior enterprise zone certificate is
December 31 in the year in which the new facility or rehabilitated
facility is substantially completed and, for a new facility,
occupied by an owner as a principal residence, as evidenced by the
owner filing with the assessor of the local assessing unit all of
the following:
(a) For a new facility, a certificate of occupancy.
(b) For a rehabilitated facility, a certificate that the
improvements meet minimum local building code standards issued by
the local building inspector or other authorized officer or a
certificate of occupancy if required by local building permits or
building codes.
(c) For a rehabilitated facility, documentation proving the
cost requirements of section 2(k) are met.
(d) For a homestead facility or a new facility, an affidavit
executed by an owner affirming that the homestead facility or new
facility is occupied by an owner as a principal residence.
(2) If a new facility is substantially completed in a year but
is not occupied by an owner as a principal residence until the
following year, upon the request of the owner, the effective date
of the senior enterprise zone certificate shall be December 31 in
the year immediately preceding the date of occupancy by the owner
as a principal residence.
(3) Upon the request of the owner, the effective date of the
senior enterprise zone certificate for a rehabilitated facility
shall be December 31 in the year immediately preceding the date on
which the rehabilitated facility is substantially completed.
Sec. 11. (1) Upon receipt of a request by certified mail to
the qualified assessing authority by the holder of a senior
enterprise zone certificate requesting revocation of the
certificate, the qualified assessing authority by order shall
revoke the certificate.
(2) The certificate shall expire if the owner fails to
complete the filing requirements under section 10 within 2 years of
the date the certificate was issued. The holder of the certificate
may request in writing to the qualified assessing authority a 1-
year automatic extension of the certificate if the owner has
proceeded in good faith with the construction or rehabilitation of
the facility in a manner consistent with the purposes of this act
and the delay in completion or occupancy by an owner is due to
circumstances beyond the control of the holder of the certificate.
Upon request of the governing body of the local governmental unit,
the qualified assessing authority shall extend the certificate if
the new facility has not been occupied.
(3) The certificate for a homestead facility or new facility
is automatically revoked if the homestead facility or new facility
is no longer a homestead as that term is defined in section 7a of
the general property tax act, 1893 PA 206, MCL 211.7a. However, if
the owner or any subsequent owner submits a certificate before the
revocation is effective, the qualified assessing authority, upon
application of the owner, shall rescind the order of revocation. If
the certificate is submitted after revocation of the certificate,
the qualified assessing authority, upon application of the owner,
shall reinstate the certificate for the remaining period of time
for which the original certificate would have been in effect.
(4) If the owner of the facility fails to make the annual
payment of the senior enterprise zone tax and the ad valorem
property tax on the land under the general property tax act, 1893
PA 206, MCL 211.1 to 211.155, the qualified assessing authority by
order shall revoke the certificate. However, if payment of these
taxes is made before the revocation is effective, the qualified
assessing authority, upon application of the owner, shall rescind
the order of revocation. If payment of these taxes and any
subsequent ad valorem property tax due on the facility is made
after revocation of the certificate, the qualified assessing
authority, upon application of the owner, shall reinstate the
certificate for the remaining period of time for which the original
certificate would have been in effect.
(5) If a homestead facility, a new facility, or a
rehabilitated facility ceases to have as its primary purpose
residential housing, the qualified assessing authority by order
shall revoke the certificate for that facility. A new or
rehabilitated facility does not cease to be used for its primary
purpose if it is temporarily damaged or destroyed in whole or in
part.
(6) If the governing body of a local governmental unit
determines that a homestead facility, a new facility, or a
rehabilitated facility is not in compliance with any local
construction, building, or safety codes and notifies the qualified
assessing authority by certified mail of the noncompliance, the
qualified assessing authority by order shall revoke the
certificate.
(7) The revocation shall be effective beginning the December
31 following the date of the order or, if the certificate is
automatically revoked under subsection (3), the December 31
following the automatic revocation. The qualified assessing
authority shall send by certified mail copies of the order of
revocation to the holder of the certificate and to the assessor of
that local governmental unit, and to the legislative body of each
taxing unit that levies taxes upon property in the local
governmental unit in which the new facility or rehabilitated
facility is located.
Sec. 12. (1) Except as otherwise provided in this section,
unless earlier revoked as provided in section 11, a senior
enterprise zone certificate shall remain in effect for 6 to 15
years from the effective date of the certificate as determined by
the governing body of the local governmental unit. If the homestead
facility, new facility, or rehabilitated facility is sold or
transferred to another owner who otherwise complies with this act
and, for a homestead facility or a new facility, uses the homestead
facility or the new facility as a principal residence, the
certificate shall remain in effect.
(2) Except as provided in subsection (3), a change in
ownership of a rehabilitated facility constituting all or a portion
of a qualified historic building, occurring after the effective
date of a senior enterprise zone certificate for that rehabilitated
facility, shall not affect the validity of that neighborhood
enterprise zone certificate, and the certificate shall remain in
effect for the period specified in this section as long as the
rehabilitated facility has as its primary purpose residential
housing.
(3) Unless revoked earlier as provided in section 11, a senior
enterprise zone certificate in effect for a rehabilitated facility
constituting all or a portion of a qualified historic building
shall remain in effect for 11 to 17 years from the effective date
of the certificate as determined by the governing body of the local
governmental unit. However, if a rehabilitated facility
constituting all or a portion of a qualified historic building is
not transferred or sold to a person who will own and occupy the
rehabilitated facility as his or her principal residence within 6
years of the effective date of the senior enterprise zone
certificate, the senior enterprise zone certificate is revoked.
Sec. 13. (1) The assessor of each local governmental unit in
which is located a homestead facility, a new facility, or a
rehabilitated facility for which a senior enterprise zone
certificate is in effect shall determine annually, with respect to
each homestead facility, new facility, or rehabilitated facility,
the assessed valuation of the property comprising the facility
having the benefit of a senior enterprise zone certificate and the
amount of ad valorem property tax that would have been paid with
respect to each homestead facility, new facility, and rehabilitated
facility under the general property tax act, 1893 PA 206, MCL 211.1
to 211.155, if the certificate had not been in force, and the
assessed valuation on which the senior enterprise zone tax is based
for a homestead facility or a rehabilitated facility. A holder of a
certificate shall furnish to the assessor the information necessary
for the determination.
(2) After making the determinations under subsection (1), the
assessor shall send annually notification of those determinations
to the governing body of each taxing unit that levies taxes upon
property in the local governmental unit in which the new facility
or rehabilitated facility is located and the holder of the
certificate for which the determination is made. The notice shall
be sent by certified mail not later than October 15 and shall be
based upon the valuation as of the immediately preceding December
31.
Sec. 14. (1) The commission may promulgate rules it considers
necessary for the administration of this act pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(2) Not later than June 15 each year, the assessor of each
local governmental unit that issues a certificate under this act
for a homestead facility shall file with the commission a report
that contains all of the following information for the immediately
preceding calendar year:
(a) The number of certificates issued.
(b) The date of issuance of each certificate.
(c) The name and address of the holder of each certificate.
(d) The legal description of the real property of the
homestead facility for which each certificate was issued.
(e) The taxable value for each homestead facility for which a
certificate was issued.
(f) For each certificate that was transferred, all of the
following:
(i) The date of each transfer.
(ii) The name and address of the former holder of the
certificate.
(iii) The name and address of the current holder of the
certificate.
(g) For each certificate that was revoked pursuant to section
11, all of the following:
(i) The reason for the revocation.
(ii) The date of the revocation.
(iii) The name and address of the holder of each certificate
that was revoked.
(h) The impact on neighborhood revitalization in the local
governmental unit, including the estimated tax savings for all new
and current certificate holders.
(3) A report required by this section shall be prepared by the
local assessor on a form provided by the commission. The commission
may require that the report be filed in an electronic format
prescribed by the commission.
(4) Not later than October 15 each year, the commission shall
review and evaluate the information contained in the report
described in subsection (2) and submit a report based on that
evaluation to each house of the legislature, the chairpersons of
the senate and house of representatives standing committees on
appropriations, the chairperson of the senate standing committee on
finance, and the chairperson of the house of representatives
standing committee on tax policy. The report required under this
subsection shall also include specific recommendations for any
changes considered necessary in this act.