NEIGHBORHOOD ENTERPRISE ZONE                                                             H.B. 4641:

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

House Bill 4641 (as reported without amendment)

Sponsor:  Representative Steve Marino

House Committee:  Commerce and Tourism

Senate Committee:  Economic and Small Business Development

CONTENT

The bill would amend the Neighborhood Enterprise Zone Act to allow the holder of a certificate issued before March 23, 2020, to request from the qualified assessing authority, at least 180 days after the certificate expired, a 180-day automatic extension of deadlines, in addition to any extensions already exercised by the certificate holder.

MCL 207.781                                                           Legislative Analyst:  Tyler VanHuyse

FISCAL IMPACT

The bill would have a negative fiscal impact on the State and affected local governments. The potential revenue loss would depend on the specific characteristics of the properties granted extensions under the bill. The potential revenue loss would affect local property taxes where the properties are 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. If it were assumed that all properties granted an extension would have met the deadlines if not for the COVID-19 public health emergency, there would be no fiscal impact.

Date Completed:  6-14-21                                                    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.