September 24, 2013, Introduced by Senators PROOS, JONES and KOWALL and referred to the Committee on Finance.
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) Subject to subsection (3), real and personal
property owned by an eligible economic development group is exempt
from the collection of taxes under this act as provided in this
section.
(2) Real and personal property of an eligible economic
development group is exempt from the collection of taxes under this
act for a period beginning on December 31 in the year in which the
MEDC approves the eligible economic development group for exemption
under this section and ending on December 30 in the year 5 years
after the MEDC approves the eligible economic development group for
exemption under this section. However, the exemption of real and
personal property of an eligible economic development group under
this section may be extended for an additional 2 years if the MEDC
determines that the eligible economic development group is making
adequate progress in the redevelopment of real property or in
combining parcels of real property for economic redevelopment. If
the MEDC approves an extension of the exemption under this section,
the exemption shall end on December 30 in the year 7 years after
the MEDC originally approved the eligible economic development
group for exemption under this section.
(3) Real and personal property of an eligible economic
development group is not eligible for the exemption under this
section unless the legislative body of the local tax collecting
unit in which the real and personal property is located adopts a
resolution approving the exemption.
(4) The MEDC 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 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.
(5) As used in this section:
(a) "Economic development group" means a nonprofit
organization the primary purpose of which is the economic
redevelopment of real property or combining parcels of real
property for economic redevelopment.
(b) "Eligible economic development group" means an economic
development group approved by the Michigan economic development
corporation as eligible for the exemption under this section.
(c) "Michigan economic development corporation" or "MEDC"
means the Michigan economic development corporation, the public
body corporate created under section 28 of article VII of the state
constitution of 1963 and the urban cooperation act of 1967, 1967
(Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual interlocal
agreement effective April 5, 1999, and subsequently amended,
between local participating economic development corporations
formed under the economic development corporations act, 1974 PA
338, MCL 125.1601 to 125.1636, and the Michigan strategic fund.
(d) "Michigan strategic fund" means the Michigan strategic
fund as described in the Michigan strategic fund act, 1984 PA 270,
MCL 125.2001 to 125.2094.