HB-5483, As Passed House, March 10, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5483

 

February 5, 2004, Introduced by Reps. Rivet, McConico, Accavitti, Farrah, Tobocman, Bisbee, Huizenga, DeRoche, Hunter and Elkins and referred to the Committee on Commerce.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 2000 PA 146, entitled                                             

                                                                                

    "Obsolete property rehabilitation act,"                                     

                                                                                

    by amending section 2 (MCL 125.2782).                                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 2.  As used in this act:                                               

                                                                                

2       (a) "Commercial housing property" means that portion of real                

                                                                                

3   property not occupied by an owner of that real property that is             

                                                                                

4   classified as residential real property under section 34c of the            

                                                                                

5   general property tax act, 1893 PA 206, MCL 211.34c, is a                    

                                                                                

6   multiple-unit dwelling, or is a dwelling unit in a                          

                                                                                

7   multiple-purpose structure, used for residential purposes.                  

                                                                                

8   Commercial housing property also includes a building or group of            

                                                                                

9   contiguous buildings previously used for industrial purposes that           

                                                                                

10  will be converted to a multiple-unit dwelling or dwelling unit in           

                                                                                

11  a multiple-purpose structure, used for residential purposes.                

                                                                                


                                                                                

1       (b) "Commercial property" means land improvements classified                

                                                                                

2   by law for general ad valorem tax purposes as real property                 

                                                                                

3   including  real property  buildings and improvements assessable             

                                                                                

4   as  personal  real property pursuant to sections 8(d) and 14(6)             

                                                                                

5   of the general property tax act, 1893 PA 206, MCL 211.8 and                 

                                                                                

6   211.14, the primary purpose and use of which is the operation of            

                                                                                

7   a commercial business enterprise.  Commercial property shall also           

                                                                                

8   include facilities related to a commercial business enterprise              

                                                                                

9   under the same ownership at that location, including, but not               

                                                                                

10  limited to, office, engineering, research and development,                  

                                                                                

11  warehousing, parts distribution, retail sales, and other                    

                                                                                

12  commercial activities.  Commercial property also includes a                 

                                                                                

13  building or group of contiguous buildings previously used for               

                                                                                

14  industrial purposes that will be converted to the operation of a            

                                                                                

15  commercial business enterprise or a multiple-unit dwelling or a             

                                                                                

16  dwelling unit in a multiple-purpose structure, used for                     

                                                                                

17  residential purposes.  Commercial property does not include any             

                                                                                

18  of the following:                                                           

                                                                                

19                                                                               (i) Land.                                                                           

                                                                                

20      (ii) Property of a public utility.                                           

                                                                                

21      (c) "Commission" means the state tax commission created by                  

                                                                                

22  1927 PA 360, MCL 209.101 to 209.107.                                        

                                                                                

23      (d) "Department" means the department of treasury.                          

                                                                                

24      (e) "Facility", except as otherwise provided in this act,                   

                                                                                

25  means a building or group of contiguous buildings.                          

                                                                                

26      (f) "Functionally obsolete" means that term as defined in                   

                                                                                

27  section 2 of the brownfield redevelopment financing act, 1996               


                                                                                

1   PA 381, MCL 125.2652.                                                       

                                                                                

2       (g) "Obsolete properties tax" means the specific tax levied                 

                                                                                

3   under this act.                                                             

                                                                                

4       (h) "Obsolete property" means commercial property or                        

                                                                                

5   commercial housing property, that is 1 or more of the following:            

                                                                                

6                                                                                (i) Blighted, as that term is defined in section 2 of the                           

                                                                                

7   brownfield redevelopment financing act, 1996 PA 381,                        

                                                                                

8   MCL 125.2652.                                                               

                                                                                

9       (ii) A facility as that term is defined under section 20101                  

                                                                                

10  of the natural resources and environmental protection act, 1994             

                                                                                

11  PA 451, MCL 324.20101.                                                      

                                                                                

12      (iii) Functionally obsolete.                                                 

                                                                                

13      (i) "Obsolete property rehabilitation district" means an area               

                                                                                

14  of a qualified local governmental unit established as provided in           

                                                                                

15  section 3.  Only those properties within the district meeting the           

                                                                                

16  definition of "obsolete property" are eligible for an exemption             

                                                                                

17  certificate issued pursuant to section 6.                                   

                                                                                

18      (j) "Obsolete property rehabilitation exemption certificate"                

                                                                                

19  or "certificate" means the certificate issued pursuant to section           

                                                                                

20  6.                                                                          

                                                                                

21      (k) "Qualified local governmental unit" means 1 or more of                  

                                                                                

22  the following:                                                              

                                                                                

23                                                                               (i) A city with a median family income of 150% or less of the                       

                                                                                

24  statewide median family income as reported in the 1990 federal              

                                                                                

25  decennial census that meets 1 or more of the following criteria:            

                                                                                

26      (A) Contains or has within its borders an eligible distressed               

                                                                                

27  area as that term is defined in section 11(u)(ii) and (iii) of                 


                                                                                

1   the state housing development authority act of 1966, 1966 PA 346,           

                                                                                

2   MCL 125.1411.                                                               

                                                                                

3       (B) Is contiguous to a city with a population of 500,000 or                 

                                                                                

4   more.                                                                       

                                                                                

5       (C) Has a population of 10,000 or more that is located                      

                                                                                

6   outside of an urbanized area as delineated by the United States             

                                                                                

7   bureau of the census.                                                       

                                                                                

8       (D) Is the central city of a metropolitan area designated by                

                                                                                

9   the United States office of management and budget.                          

                                                                                

10      (E) Has a population of 100,000 or more that is located in a                

                                                                                

11  county with a population of 2,000,000 or more according to the              

                                                                                

12  1990 federal decennial census.                                              

                                                                                

13      (ii) A township with a median family income of 150% or less                  

                                                                                

14  of the statewide median family income as reported in the 1990               

                                                                                

15  federal decennial census that meets 1 or more of the following              

                                                                                

16  criteria:                                                                   

                                                                                

17      (A) Is contiguous to a city with a population of 500,000 or                 

                                                                                

18  more.                                                                       

                                                                                

19      (B) All of the following:                                                   

                                                                                

20      (I) Contains or has within its borders an eligible distressed               

                                                                                

21  area as that term is defined in section 11(u)(ii) of the state               

                                                                                

22  housing development authority act of 1966, 1966 PA 346,                     

                                                                                

23  MCL 125.1411.                                                               

                                                                                

24      (II) Has a population of 10,000 or more.                                    

                                                                                

25      (iii) A village with a population of 500 or more as reported                 

                                                                                

26  in the 1990 federal decennial census located in an area                     

                                                                                

27  designated as a rural enterprise community before 1998 under                


                                                                                

1   title XIII of the omnibus budget reconciliation act of 1993,                

                                                                                

2   Public Law 103-66, 107 Stat. 416.                                           

                                                                                

3       (iv) A city that meets all of the following criteria:                        

                                                                                

4       (A) Has a population of more than 20,000 or less than 5,000                 

                                                                                

5   and is located in a county with a population of 2,000,000 or more           

                                                                                

6   according to the 1990 federal decennial census.                             

                                                                                

7       (B) As of January 1, 2000, has an overall increase in the                   

                                                                                

8   state equalized valuation of real and personal property of less             

                                                                                

9   than 65% of the statewide average increase since 1972 as                    

                                                                                

10  determined for the designation of eligible distressed areas under           

                                                                                

11  section 11(u)(ii)(B) of the state housing development authority              

                                                                                

12  act of 1966, 1966 PA 346, MCL 125.1411.                                     

                                                                                

13                                                                               (l) "Rehabilitation" means changes to obsolete property other                       

                                                                                

14  than replacement that are required to restore or modify the                 

                                                                                

15  property, together with all appurtenances, to an economically               

                                                                                

16  efficient condition.  Rehabilitation includes major renovation              

                                                                                

17  and modification including, but not necessarily limited to, the             

                                                                                

18  improvement of floor loads, correction of deficient or excessive            

                                                                                

19  height, new or improved fixed building equipment, including                 

                                                                                

20  heating, ventilation, and lighting, reducing multistory                     

                                                                                

21  facilities to 1 or 2 stories, adding additional space or adding             

                                                                                

22  additional stories to a facility, improved structural support               

                                                                                

23  including foundations, improved roof structure and cover, floor             

                                                                                

24  replacement, improved wall placement, improved exterior and                 

                                                                                

25  interior appearance of buildings, and other physical changes                

                                                                                

26  required to restore or change the obsolete property to an                   

                                                                                

27  economically efficient condition.  Rehabilitation shall not                 


                                                                                

1   include improvements aggregating less than 10% of the true cash             

                                                                                

2   value of the property at commencement of the rehabilitation of              

                                                                                

3   the obsolete property.                                                      

                                                                                

4       (m) "Rehabilitated facility" means a commercial property or                 

                                                                                

5   commercial housing property that has undergone rehabilitation or            

                                                                                

6   is in the process of being rehabilitated, including                         

                                                                                

7   rehabilitation that changes the intended use of the building.  A            

                                                                                

8   rehabilitated facility does not include property that is to be              

                                                                                

9   used as a professional sports stadium.  A rehabilitated facility            

                                                                                

10  does not include property that is to be used as a casino.  As               

                                                                                

11  used in this subdivision, "casino" means a casino or a parking              

                                                                                

12  lot, hotel, motel, or retail store owned or operated by a casino,           

                                                                                

13  an affiliate, or an affiliated company, regulated by this state             

                                                                                

14  pursuant to the Michigan gaming control and revenue act, the                

                                                                                

15  Initiated Law of 1996, MCL 432.201 to 432.226.                              

                                                                                

16      (n) "Taxable value" means the value determined under section                

                                                                                

17  27a of the general property tax act, 1893 PA 206, MCL 211.27a.