HOUSE BILL No. 6108

 

May 24, 2006, Introduced by Reps. Mayes, Huizenga, Meisner and Spade and referred to the Committee on Commerce.

 

     A bill to amend 2000 PA 146, entitled

 

"Obsolete property rehabilitation act,"

 

by amending section 8 (MCL 125.2788).

 

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)  The  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 exemption certificate for the

 

facility was granted in 2006.

 

     (iii) The rehabilitation of the facility included adding

 

additional stories to the facility.

 

     (b) Emergency or temporary repairs or improvements were made

 

before the establishment of the obsolete property rehabilitation

 

district.