SB-0536, As Passed Senate, June 11, 2014

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 536

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

(MCL 211.1 to 211.155) by adding section 7tt.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 7tt. (1) The governing body of a local tax collecting

unit may adopt a resolution to exempt from the collection of taxes

under this act specifically identified real and personal property

owned by an eligible economic development group as provided in this

section.

(2) A resolution adopted by the governing body of the local

tax collecting unit under subsection (1) shall set forth the period

during which specifically identified real and personal property is

exempt, which period shall not exceed 7 years. If the resolution is

approved as provided in this section, the exemption of that

specifically identified real and personal property is effective on

the December 31 immediately succeeding the adoption of the

resolution and shall continue in effect through December 30 in the

final year of exemption as determined in the resolution.

(3) A resolution adopted by the governing body of the local

tax collecting unit under subsection (1) may include terms and

conditions of a development agreement with the eligible economic

development group that owns the specifically identified real and

personal property, upon which development agreement the exemption

under this section is predicated.

(4) Before acting on the resolution under subsection (1), the

clerk of the local tax collecting unit shall notify in writing the

assessor of the local tax collecting unit and the legislative body

of each taxing unit that levies ad valorem property taxes in the

local tax collecting unit. The governing body of the local tax

collecting unit shall afford the assessor and a representative of

the affected taxing units an opportunity for a hearing before

acting on the resolution under subsection (1). A copy of the

resolution adopted under subsection (1) shall be filed with the

state tax commission, the state treasurer, and all affected taxing

units. A resolution adopted under subsection (1) is not effective

unless approved as provided in subsection (5).

(5) Not more than 60 days after receipt of a copy of the

resolution adopted by the governing body of a local tax collecting

unit under subsection (1), the state tax commission shall determine

if the real and personal property subject to the exemption is owned

by an eligible economic development group. If the state tax

commission determines that the real and personal property subject

to the exemption is owned by an eligible economic development

group, the state treasurer shall approve the resolution adopted

under subsection (1) if the state treasurer determines that

exempting that real and personal property of the eligible economic

development group is necessary to reduce unemployment, promote

economic growth, and increase capital investment in this state.

(6) Not more than 45 days after the state treasurer approves

under subsection (5) a resolution adopted under subsection (1), the

county in which the local tax collecting unit that adopted the

resolution under subsection (1) is located may by resolution elect

to withdraw all mills levied by that county from the exemption

under this section. If a county elects to withdraw all mills levied

by that county from the exemption under this section, the local tax

collecting unit shall levy and collect all mills levied by that

county on the real and personal property owned by an eligible

economic development group identified in the resolution adopted

under subsection (1). A copy of a resolution adopted under this

subsection shall be filed with the local tax collecting unit, the

state tax commission, and the state treasurer.

(7) The state tax commission shall annually report to the

senate finance committee and house tax policy committee the total

number of eligible economic development groups that are receiving

an exemption under this section.

(8) As used in this section, "eligible economic development

group" means a nonprofit organization the primary purpose of which

is the economic development of real property or combining parcels