SB-0308, As Passed House, December 12, 2013

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 308

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 2000 PA 146, entitled

 

"Obsolete property rehabilitation act,"

 

by amending section 8 (MCL 125.2788), as amended by 2008 PA 504.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 an obsolete property

 

exemption certificate unless the applicant complies with all of the

 

following requirements:

 

     (a) Except as otherwise provided in subsection (3), the

 

commencement of the rehabilitation of the facility does not occur

 

before the establishment of the obsolete property rehabilitation

 

district.

 

     (b) The application relates to a rehabilitation program that

 

when completed constitutes a rehabilitated facility within the

 

meaning of this act and that shall be situated within an obsolete

 

property rehabilitation district established in a qualified local

 

governmental unit eligible under this act to establish such a

 

district.

 

     (c) Completion of the rehabilitated 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 facility is situated.

 

     (d) The applicant states, in writing, that the rehabilitation

 

of the facility 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 facility.

 

     (3) The legislative body of a qualified local governmental

 

unit may approve an application for an obsolete property exemption

 

certificate if the commencement of the rehabilitation of the

 

facility occurs before the establishment of the obsolete property

 

rehabilitation district and if 1 or more of the following are met:

 

     (a) All of the following are met:

 

     (i) The building permit for the rehabilitation of the facility

 

was obtained in October 2002.

 

     (ii) The obsolete property rehabilitation district was created

 

in April 2002.

 

     (iii) The rehabilitation of the facility included adding

 

additional stories to the facility.

 

     (b) All of the following are met:

 

     (i) Emergency or temporary repairs or improvements were made

 

before the establishment of the obsolete property rehabilitation

 

district.

 

     (ii) The obsolete property rehabilitation district was created

 

in January 2006.

 

     (iii) The facility is located in a city with a population of

 

more than 20,500 and less than 27,000 and is located in a county

 

with a population of more than 95,000 and less than 105,000.

 

     (c) All of the following are met:

 

     (i) Roof repairs or improvements were completed in March 2006

 

before the establishment of the obsolete property rehabilitation

 

district.

 

     (ii) The obsolete property rehabilitation district was created

 

in April 2006.

 

     (iii) The application was submitted to the qualified local

 

governmental unit in April 2006.

 

     (iv) The facility is located in a city with a population of

 

more than 10,800 and less than 11,100 and is located in a county

 

with a population of more than 39,000 and less than 42,000.

 

     (d) All of the following are met:

 

     (i) The building permit for the rehabilitation of the facility

 

was obtained in September 2010.

 

     (ii) The obsolete property rehabilitation district was created

 

in October 2012.

 

     (iii) The rehabilitation of the facility included renovation of

 

the entire interior building structure and mold removal.

 

     (e) All of the following are met:

 

     (i) Roof repairs or improvements began before the establishment

 

of the obsolete property rehabilitation district.

 

     (ii) The application for the facility was submitted to the

 

qualified local governmental unit in January 2010.

 

     (iii) The qualified local governmental unit established the

 

district in June 2010 and approved the certificate in October 2010.

 

     (iv) The facility is located in a city with a population of

 

more than 600,000 and is located in a county with a population of

 

more than 1,800,000, according to the most recent decennial census.

 

     (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 (3)(a), and (b), and (c), the effective

 

date of the certificate shall be December 31, 2006.

 

     (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 (3)(c), (3)(d), the effective date of the

 

certificate shall be December 31, 2006.2011.

 

     (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 (3)(e), the effective date of the

 

certificate shall be December 31, 2010.