Bill Text: MI SB0223 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Economic development; commercial redevelopment; definition of qualified facility; modify. Amends secs. 2 & 8 of 2005 PA 210 (MCL 207.842 & 207.848).
Spectrum: Bipartisan Bill
Status: (Passed) 2011-08-24 - Assigned Pa 0082'11 With Immediate Effect [SB0223 Detail]
Download: Michigan-2011-SB0223-Engrossed.html
SB-0223, As Passed Senate, March 17, 2011
SUBSTITUTE FOR
SENATE BILL NO. 223
A bill to amend 2005 PA 210, entitled
"Commercial rehabilitation act,"
by amending sections 2 and 8 (MCL 207.842 and 207.848), as amended
by 2008 PA 500.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Commercial property" means land improvements classified
by law for general ad valorem tax purposes as real property
including real property assessable as personal property pursuant to
sections 8(d) and 14(6) of the general property tax act, 1893 PA
206, MCL 211.8 and 211.14, the primary purpose and use of which is
the operation of a commercial business enterprise or multifamily
residential use. Commercial property shall also include facilities
related to a commercial business enterprise under the same
ownership at that location, including, but not limited to, office,
engineering, research and development, warehousing, parts
distribution, retail sales, and other commercial activities.
Commercial property also includes a building or group of contiguous
buildings previously used for industrial purposes that will be
converted to the operation of a commercial business enterprise.
Commercial property does not include any of the following:
(i) Land.
(ii) Property of a public utility.
(b) "Commercial rehabilitation district" or "district" means
an area not less than 3 acres in size of a qualified local
governmental unit established as provided in section 3. However, if
the commercial rehabilitation district is located in a downtown or
business area or contains a qualified retail food establishment, as
determined by the legislative body of the qualified local
governmental unit, the district may be less than 3 acres in size.
(c) "Commercial rehabilitation exemption certificate" or
"certificate" means the certificate issued under section 6.
(d) "Commercial rehabilitation tax" means the specific tax
levied under this act.
(e) "Commission" means the state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(f) "Department" means the department of treasury.
(g) "Multifamily residential use" means multifamily housing
consisting of 5 or more units.
(h) "Qualified facility" means a qualified retail food
establishment or a building or group of contiguous buildings of
commercial property that is 15 years old or older or has been
allocated
for a new markets tax credit under section 45d 45D of
the
internal
revenue code, 26 USC 45d 45D. Qualified facility also
includes vacant property located in a city with a population of
more than 36,000 and less than 37,000 according to the 2000 federal
decennial census and from which a previous structure has been
demolished and on which commercial property will be newly
constructed. Qualified facility shall also include vacant property
located in a city with a population of more than 500,000 according
to the most recent federal decennial census and from which a
previous structure has been demolished and on which commercial
property is or will be newly constructed provided an application
for a certificate has been filed with that city before July 1,
2010. A qualified facility does not include property that is to be
used as a professional sports stadium. A qualified facility does
not include property that is to be used as a casino. As used in
this subdivision, "casino" means a casino or a parking lot, hotel,
motel, or retail store owned or operated by a casino, an affiliate,
or an affiliated company, regulated by this state pursuant to the
Michigan gaming control and revenue act, 1996 IL 1, MCL 432.201 to
432.226.
(i) "Qualified local governmental unit" means a city, village,
or township.
(j) "Qualified retail food establishment" means property that
meets all of the following:
(i) The property will be used primarily as a retail
supermarket, grocery store, produce market, or delicatessen that
offers unprocessed USDA-inspected meat and poultry products or meat
products that carry the USDA organic seal, fresh fruits and
vegetables, and dairy products for sale to the public.
(ii) The property meets 1 of the following:
(A) Is located in a qualified local governmental unit that is
also located in a qualified local governmental unit as defined in
section 2 of the obsolete property rehabilitation act, 2000 PA 146,
MCL 125.2782, and is located in an underserved area.
(B) Is located in a qualified local governmental unit that is
designated as rural as defined by the United States census bureau
and is located in an underserved area.
(iii) The property was used as residential, commercial, or
industrial property as allowed and conducted under the applicable
zoning ordinance for the immediately preceding 30 years.
(k) "Rehabilitation" means changes to a qualified facility
that are required to restore or modify the property, together with
all appurtenances, to an economically efficient condition.
Rehabilitation includes major renovation and modification
including, but not necessarily limited to, the improvement of floor
loads, correction of deficient or excessive height, new or improved
fixed building equipment, including heating, ventilation, and
lighting, reducing multistory facilities to 1 or 2 stories,
improved structural support including foundations, improved roof
structure and cover, floor replacement, improved wall placement,
improved exterior and interior appearance of buildings, and other
physical changes required to restore or change the property to an
economically efficient condition. Rehabilitation for a qualified
retail food establishment also includes new construction.
Rehabilitation also includes new construction on vacant property
from which a previous structure has been demolished and if the new
construction is an economic benefit to the local community as
determined by the qualified local governmental unit. Rehabilitation
shall not include improvements aggregating less than 10% of the
true cash value of the property at commencement of the
rehabilitation of the qualified facility.
(l) "Taxable value" means the value determined under section
27a of the general property tax act, 1893 PA 206, MCL 211.27a.
(m) "Underserved area" means an area determined by the
Michigan department of agriculture that contains a low or moderate
income census tract and a below average supermarket density, an
area that has a supermarket customer base with more than 50% living
in a low income census tract, or an area that has demonstrated
significant access limitations due to travel distance.
Sec. 8. (1) If the taxable value of the property proposed to
be exempt pursuant to an application under consideration,
considered together with the aggregate taxable value of property
exempt under certificates previously granted and currently in force
under this act or under 1974 PA 198, MCL 207.551 to 207.572,
exceeds 5% of the taxable value of the qualified local governmental
unit, the legislative body of the qualified local governmental unit
shall make a separate finding and shall include a statement in its
resolution approving the application that exceeding that amount
shall not have the effect of substantially impeding the operation
of the qualified local governmental unit or impairing the financial
soundness of an affected taxing unit.
(2) The legislative body of the qualified local governmental
unit shall not approve an application for a commercial
rehabilitation exemption certificate unless the applicant complies
with all of the following requirements:
(a) Except as otherwise provided in this subdivision or
subsection (3), the commencement of the rehabilitation of the
qualified facility does not occur earlier than 6 months before the
applicant files the application for the commercial rehabilitation
exemption certificate. However, through December 31, 2009, for a
qualified facility that is a qualified retail food establishment,
the commencement of the rehabilitation does not occur earlier than
42 months before the applicant files the application for the
commercial rehabilitation exemption certificate.
(b) The application relates to a rehabilitation program that
when completed constitutes a qualified facility within the meaning
of this act and that shall be situated within a commercial
rehabilitation district established in a qualified local
governmental unit eligible under this act.
(c) Completion of the qualified facility is calculated to, and
will at the time of issuance of the certificate have the reasonable
likelihood to, increase commercial activity, create employment,
retain employment, prevent a loss of employment, revitalize urban
areas, or increase the number of residents in the community in
which the qualified facility is situated.
(d) The applicant states, in writing, that the rehabilitation
of the qualified facility, excluding qualified retail food
establishments through December 31, 2009, would not be undertaken
without the applicant's receipt of the exemption certificate.
(e) The applicant is not delinquent in the payment of any
taxes related to the qualified facility.
(3) The provisions of subsection (2)(a) and (d) and the
provision contained in section 4(1) that provides that the district
must be established before an application is filed do not apply to
the rehabilitation of a qualified facility located in a commercial
rehabilitation district established by the legislative body of the
qualified local governmental unit in 2011 for construction or
rehabilitation that was commenced in August 2010 and for which an
application for a commercial rehabilitation exemption certificate
was filed in June 2010.
