SB-0536, As Passed Senate, December 11, 2013

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) 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 (3).

     (3) 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.

     (4) Subject to subsection (5), the exemption under this

section is effective on the December 31 immediately succeeding the

adoption of the resolution by the governing body of the local tax

collecting unit under subsection (1) and shall continue in effect

through December 30 in the year 5 years after the resolution under

subsection (1) is adopted by the governing body of the local tax

collecting unit. However, the governing body of a local tax

collecting unit may by resolution extend the exemption of that

specifically identified real and personal property of an eligible

economic development group under this section for an additional 2

years if the governing body of the local tax collecting unit

determines that the eligible economic development group is making

adequate progress in the development of real property or in

combining parcels of real property for economic development. If the

governing body of the local tax collecting unit approves an

extension of the exemption under this section, the exemption shall

end on December 30 in the year 7 years after the resolution under

subsection (1) is adopted by the governing body of the local tax

collecting unit under this section. A copy of the resolution

adopted under this subsection extending the exemption under this

section shall be filed with the state tax commission and the state

treasurer.

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

under subsection (3) 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.

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

senate and house of representatives the total number of eligible

economic development groups that are receiving an exemption under

this section, where the real and personal property subject to the

exemption is located in this state, and the total dollar amount of

the tax revenue foregone as a result of those exemptions.

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

group" means a charitable nonprofit organization the primary

purpose of which is the economic development of real property or

combining parcels of real property for economic development

purposes.