NEIGHBORHOOD ENTERPRISE ZONE S.B. 459:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 459 (as reported without amendment)
Committee: Economic and Small Business Development
CONTENT
The bill would amend the Neighborhood Enterprise Zone Act to specify that an application for the construction of a new facility or a rehabilitated facility could be filed after a building permit was issued if the area in which the new facility or rehabilitated facility was located were designated as a neighborhood enterprise zone by the governing body of the local governmental unit in January 2016 and if the building permit was issued for that facility in August 2016 or August 2019.
MCL 207.774 Legislative Analyst: Tyler VanHuyse
FISCAL IMPACT
The bill, by allowing additional exemptions in neighborhood enterprise zones, could result in a loss of State and local property taxes. The potential loss would depend on the specific characteristics of the property eligible under the bill. The potential revenue loss would affect local property taxes where the neighborhood enterprise zones were located as well as State property taxes via the State Education Tax. Since school operating mills also would be reduced, costs to the School Aid Fund would increase if the foundation allowance were maintained.
Date Completed: 5-24-21 Fiscal Analyst: Ryan Bergan
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.