Bill Text: MI SB0697 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Economic development; renaissance zones; reduction of investments; provide for and exempt tool and die recovery zones from phase-out. Amends secs. 8c & 9 of 1996 PA 376 (MCL 125.2688c & 125.2689).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2009-07-15 - Referred To Committee On Commerce And Tourism [SB0697 Detail]

Download: Michigan-2009-SB0697-Introduced.html

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SENATE BILL No. 697

 

 

July 15, 2009, Introduced by Senator ALLEN and referred to the Committee on Commerce and Tourism.

 

 

 

     A bill to amend 1996 PA 376, entitled

 

"Michigan renaissance zone act,"

 

by amending sections 8c and 9 (MCL 125.2688c and 125.2689), section

 

8c as amended by 2006 PA 284 and section 9 as amended by 2008 PA

 

495.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 8c. (1) The board, upon recommendation of the board of

 

the Michigan strategic fund defined in section 4 of the Michigan

 

strategic fund act, 1984 PA 270, MCL 125.2004, and upon

 

recommendation of the commission of agriculture, may designate not

 

more than 30 additional renaissance zones for agricultural

 

processing facilities within this state in 1 or more cities,

 

villages, or townships if that city, village, or township or

 

combination of cities, villages, or townships consents to the

 

creation of a renaissance zone for an agricultural processing

 

facility within their boundaries.

 

     (2) Each renaissance zone designated for an agricultural

 

processing facility under this section shall be 1 continuous

 

distinct geographic area.

 

     (3) The board may revoke the designation of all or a portion

 

of a renaissance zone for an agricultural processing facility if

 

the board determines that the agricultural processing facility does

 

1 or more of the following in a renaissance zone designated under

 

this section:

 

     (a) Fails to commence operation.

 

     (b) Ceases operation.

 

     (c) Fails to commence construction or renovation within 1 year

 

from the date the renaissance zone for the agricultural processing

 

facility is designated.

 

     (4) Beginning on the date of the amendatory act that added

 

this subsection July 10, 2006, the board shall consider all of the

 

following when designating a renaissance zone for an agricultural

 

processing facility:

 

     (a) The economic impact on local suppliers who supply raw

 

materials, goods, and services to the agricultural processing

 

facility.

 

     (b) The creation of jobs relative to the employment base of

 

the community rather than the static number of jobs created.

 

     (c) The viability of the project.

 

     (d) The economic impact on the community in which the

 

agricultural processing facility is located.

 

     (e) All other things being equal, giving preference to a

 

business entity already located in this state.

 

     (5) Beginning on the date of the amendatory act that added

 

this subsection July 10, 2006, the board shall do all of the

 

following:

 

     (a) Require a development agreement between the Michigan

 

strategic fund and the agricultural processing facility.

 

     (b) Designate not less than 3 of the renaissance zones for

 

agricultural processing facilities that have an initial capital

 

investment of less than $7,000,000.00 $6,500,000.00.

 

     (c) Designate not less than 5 of the renaissance zones for

 

agricultural processing facilities in rural areas.

 

     (6) As used in this section, "development agreement" means a

 

written agreement between the Michigan strategic fund and the

 

agricultural processing facility that includes, but is not limited

 

to, all of the following:

 

     (a) A requirement that the agricultural processing facility

 

comply with all state and local laws.

 

     (b) A requirement that the agricultural processing facility

 

report annually to the Michigan strategic fund on all of the

 

following:

 

     (i) The amount of capital investment made at the facility.

 

     (ii) The number of individuals employed at the facility at the

 

beginning and end of the reporting period as well as the number of

 

individuals transferred to the facility from another facility owned

 

by the agricultural processing facility.

 

     (iii) The percentage of raw materials purchased in this state.

 

     (c) Any other conditions or requirements reasonably required

 

by the Michigan strategic fund.

 

     Sec. 9. (1) Except as otherwise provided in section 10, an

 

individual who is a resident of a renaissance zone or a business

 

that is located and conducts business activity within a renaissance

 

zone shall receive the exemption, deduction, or credit as provided

 

in the following for the period provided under section 6(2)(b):

 

     (a) Section 39b of former 1975 PA 228 or section 433 of the

 

Michigan business tax act, 2007 PA 36, MCL 208.1433.

 

     (b) Section 31 of the income tax act of 1967, 1967 PA 281, MCL

 

206.31.

 

     (c) Section 35 of chapter 2 of the city income tax act, 1964

 

PA 284, MCL 141.635.

 

     (d) Section 5 of the city utility users tax act, 1990 PA 100,

 

MCL 141.1155.

 

     (2) Except as otherwise provided in section 10, property

 

located in a renaissance zone is exempt from the collection of

 

taxes under all of the following:

 

     (a) Section 7ff of the general property tax act, 1893 PA 206,

 

MCL 211.7ff.

 

     (b) Section 11 of 1974 PA 198, MCL 207.561.

 

     (c) Section 12 of the commercial redevelopment act, 1978 PA

 

255, MCL 207.662.

 

     (d) Section 21c of the enterprise zone act, 1985 PA 224, MCL

 

125.2121c.

 

     (e) Section 1 of 1953 PA 189, MCL 211.181.

 

     (f) Section 12 of the technology park development act, 1984 PA

 

385, MCL 207.712.

 

     (g) Section 51105 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.51105.

 

     (h) Section 9 of the neighborhood enterprise zone act, 1992 PA

 

147, MCL 207.779.

 

     (3) During Except for tool and die renaissance recovery zones

 

that have a duration of less than 15 years, during the last 3 years

 

that the taxpayer is eligible for an exemption, deduction, or

 

credit described in subsections (1) and (2), the exemption,

 

deduction, or credit shall be reduced by the following percentages:

 

     (a) For the tax year that is 2 years before the final year of

 

designation as a renaissance zone, the percentage shall be 25%.

 

     (b) For the tax year immediately preceding the final year of

 

designation as a renaissance zone, the percentage shall be 50%.

 

     (c) For the tax year that is the final year of designation as

 

a renaissance zone, the percentage shall be 75%.