NEIGHBORHOOD ENTERPRISE ZONE                                        H.B. 6017 (H-2):

                                                                                         SUMMARY OF BILL

                                                                         REPORTED FROM COMMITTEE

House Bill 6017 (Substitute H-2 as reported without amendment)

Sponsor:  Representative Joe Bellino

House Committee:  Local Government and Municipal Finance

Senate Committee:  Economic and Small Business Development

CONTENT

The bill would amend the Neighborhood Enterprise Zone Act to allow the holder of a neighborhood enterprise zone certificate issued before March 23, 2020, to request in writing to the qualified assessing authority not later than one year after the certificate expired a one-year automatic extension of the deadline established by the Act, in addition to any extensions already used by the holder.

MCL 207.781                                          Legislative Analyst:  Tyler P. VanHuyse

FISCAL IMPACT

The bill could result in a loss of State and local property taxes to the extent that a neighborhood enterprise zone certificate would expire but for the bill's provisions. The potential loss would depend on the specific characteristics of the projects eligible for the extension. 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:  6-22-22                                       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.