Bill Text: MI SB0198 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Economic development: neighborhood enterprise zones; filing of neighborhood enterprise zone certificate; modify. Amends sec. 4 of 1992 PA 147 (MCL 207.774).
Spectrum: Slight Partisan Bill (Democrat 14-5)
Status: (Introduced - Dead) 2021-03-03 - Referred To Committee On Economic And Small Business Development [SB0198 Detail]
Download: Michigan-2021-SB0198-Introduced.html
SENATE BILL NO. 198
March 03, 2021, Introduced by Senators HOLLIER,
MOSS, BRINKS, HORN, BAYER, CHANG, ALEXANDER, BULLOCK, MCCANN, WOJNO, GEISS,
SANTANA, POLEHANKI, ANANICH, IRWIN, MCBROOM, MACDONALD, VANDERWALL and
SCHMIDT and referred to the Committee on Economic and Small Business
Development.
A bill to amend 1992 PA 147, entitled
"Neighborhood enterprise zone act,"
by amending section 4 (MCL 207.774), as amended by 2014 PA 17.
the people of the state of michigan enact:
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 neighborhood
enterprise zone may file an application for a neighborhood 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 provided
in subsection (2) or 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) An application may be filed after a building permit is
issued only if 1 or more of the following apply:
(a) For the rehabilitation of a facility if the area in which
the facility is located is designated as a neighborhood enterprise zone by the
governing body of the local governmental unit in the calendar year 1992 and if
the building permit is issued for the rehabilitation before December 31, 1994
and after the date on which the area in which the facility is located was
designated as a neighborhood enterprise zone by the governing body of the local
governmental unit.
(b) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood enterprise
zone by the governing body of the local governmental unit in calendar year 1992
or 1993 and if the building permit is issued for that new facility before
December 31, 1995 and after January 1, 1993.
(c) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood enterprise
zone by the governing body of the local governmental unit in July 1997 and if
the building permit is issued for that new facility on February 3, 1998.
(d) For a new facility or a rehabilitated facility if the
area in which the new facility or rehabilitated facility is located was
designated as a neighborhood enterprise zone by the governing body of the local
governmental unit in July 1996 and if the building permit was issued for that
facility on or before July 3, 2001.
(e) For a new facility or a rehabilitated facility if the
area in which the new facility or rehabilitated facility is located was
designated as a neighborhood enterprise zone by the governing body of the local
governmental unit in October 1994 and if the building permit was issued for
that facility on or before April 25, 1997.
(f) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood enterprise
zone by the governing body of the local governmental unit in September 2001 and
if the building permit is issued for that new facility on March 3, 2003.
(g) For a rehabilitated facility if all or a portion of the
rehabilitated facility is a qualified historic building.
(h) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood enterprise
zone by the governing body of the local governmental unit in July 1993 and the
new facility was a model home.
(i) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood enterprise
zone by the governing body of the local governmental unit in August 2004 and if
building permits were issued for that facility beginning November 5, 2002
through December 23, 2003.
(j) For a homestead facility.
(k) For the construction of a facility if the area in which
the facility is located was designated as a neighborhood enterprise zone by the
governing body of the local governmental unit in July 2003, and if the building
permit was issued for that facility in June 2004.
(l) For a new facility or
a rehabilitated facility if the area in which the new facility or rehabilitated
facility is located was designated as a neighborhood zone by the governing body
of the local governmental unit in February 2004 and if the building permit for
that facility was issued in August 2003 or January 2005.
(m) For the construction
of a facility if the area in which the facility is located was designated as a
neighborhood enterprise zone by the governing body of the local governmental
unit in June 2007 and if the building permit was issued for that facility after
November 30, 2004 and before November 1, 2006.
(n) For the construction
of a facility if the area in which the facility is located was designated as a
neighborhood enterprise zone by the governing body of the local governmental
unit on July 1, 2005 and if the building permit was issued for that facility
after April 5, 2006 and before May 1, 2007.
(o) For the construction
of a new facility if the area in which the new facility is located is
designated as a neighborhood enterprise zone by the governing body of the local
governmental unit in April 2003 and if the building permit was issued for that
facility in April 2008 or September 2008.
(p) For the construction
of a facility if the area in which the facility is located was designated as a
neighborhood enterprise zone by the governing body of the local governmental
unit in September 2012 and if the building permit was issued for that facility
after December 1, 2004 and before December 30, 2004.
(q) For the construction of a new facility or a rehabilitated
facility if the area in which the new facility or rehabilitated facility is
located was 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.
(3) 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.
(4) Notwithstanding any
other provisions of this act, for any certificate issued as a result of the
enactment of the amendatory act that added subsection (2)(c) or (p), the
effective date of the certificate shall be the first day of the tax year
following the year the certificate is approved by the commission.
(5) Notwithstanding any
other provisions of this act, for any certificate issued as a result of the
enactment of the amendatory act that added subsection (2)(d) or the amendatory
act that added subsection (2)(e), the effective date of the certificate shall
be January 1, 2001.
(6) Notwithstanding any
other provisions of this act, for any certificate issued as a result of the
enactment of the amendatory act that added subsection (2)(j) or the amendatory
act that added subsection (2)(k), the effective date of the certificate shall
be the first day of the tax year following the year the certificate is approved
by the qualified assessing authority.
(7) For a certificate
issued as a result of the amendatory act that added subsection (2)(e), both of
the following shall apply not withstanding any other provision of this act:
(a) The effective date
of the certificate shall be January 1, 2001 and the taxable value for
rehabilitated facilities shall be set as provided in section 10(3).
(b) For certificates
issued or reissued after December 31, 2005, 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, as of December 31 of the year prior to the start of the improvement as
described in subsection (3) 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.
(8) For any certificate
issued as result of the amendatory act that added subsection (2)(l), notwithstanding any other provision of this act 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, as of December 31 of the year prior to the
start of the improvement as described in subsection (3) 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.
(9) If a new facility is
completed in a neighborhood enterprise zone approved in October 1996 and a
building permit was issued in March 1998 but a neighborhood enterprise zone
certificate was not applied for by the original owner occupying the facility as
a principal residence, a subsequent owner occupying the new facility as a
principal residence can request and, notwithstanding any other provision of
this act, effective December 31 of the year preceding the application, be
granted a neighborhood enterprise zone certificate for the remainder of the
term, not to exceed 12 years, that a neighborhood enterprise zone certificate
would have been in effect for the original owner of the new facility.
(10) If a new facility
is completed in a neighborhood enterprise zone but a neighborhood enterprise
zone certificate was not applied for by the original owner, a subsequent owner
occupying the new facility as a principal residence can request and,
notwithstanding any other provision of this act, effective December 31 of the
year preceding the application, be granted a neighborhood enterprise zone
certificate for the remainder of the term, not to exceed 15 years, that a
neighborhood enterprise zone certificate would have been in effect for the original
owner of the new facility.
