November 28, 2017, Introduced by Reps. Yaroch and Lucido and referred to the Committee on Tax Policy.
A bill to amend 2000 PA 146, entitled
"Obsolete property rehabilitation act,"
by amending section 2 (MCL 125.2782), as amended by 2006 PA 70.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Commercial housing property" means that portion of real
property not occupied by an owner of that real property that is
classified as residential real property under section 34c of the
general property tax act, 1893 PA 206, MCL 211.34c, is a multiple-
unit dwelling, or is a dwelling unit in a multiple-purpose
structure, used for residential purposes. Commercial housing
property also includes a building or group of contiguous buildings
previously used for industrial purposes that will be converted to a
multiple-unit dwelling or dwelling unit in a multiple-purpose
structure, used for residential purposes.
(b) "Commercial property" means land improvements classified
by law for general ad valorem tax purposes as real property
including buildings and improvements assessable as real property
pursuant to sections 8(d) and 14(6) of the general property tax
act, 1893 PA 206, MCL 211.8 and 211.14, the primary purpose and use
of which is the operation of a commercial business enterprise.
Commercial property shall also include facilities related to a
commercial business enterprise under the same ownership at that
location, including, but not limited to, office, engineering,
research and development, warehousing, parts distribution, retail
sales, and other commercial activities. Commercial property also
includes a building or group of contiguous buildings previously
used for industrial purposes that will be converted to the
operation of a commercial business enterprise or a multiple-unit
dwelling or a dwelling unit in a multiple-purpose structure, used
for residential purposes. Commercial property does not include any
of the following:
(i) Land.
(ii) Property of a public utility.
(c) "Commission" means the state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(d) "Department" means the department of treasury.
(e) "Facility", except as otherwise provided in this act,
means a building or group of contiguous buildings.
(f) "Functionally obsolete" means that term as defined in
section 2 of the brownfield redevelopment financing act, 1996 PA
381, MCL 125.2652.
(g) "Obsolete properties tax" means the specific tax levied
under this act.
(h) "Obsolete property" means commercial property or
commercial housing property, that is 1 or more of the following:
(i) Blighted, as that term is defined in section 2 of the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2652.
(ii) A facility as that term is defined under section 20101 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.20101.
(iii) Functionally obsolete.
(i) "Obsolete property rehabilitation district" means an area
of a qualified local governmental unit established as provided in
section 3. Only those properties within the district meeting the
definition of "obsolete property" are eligible for an exemption
certificate issued pursuant to section 6.
(j) "Obsolete property rehabilitation exemption certificate"
or "certificate" means the certificate issued pursuant to section
6.
(k)
"Qualified local governmental unit" means 1 or more of the
following:a city, village, or township.
(i) A city with a median family income of 150% or less
of the
statewide
median family income as reported in the 1990 federal
decennial
census that meets 1 or more of the following criteria:
(A)
Contains or has within its borders an eligible distressed
area
as that term is defined in section 11(u)(ii) and (iii) of the
state
housing development authority act of 1966, 1966 PA 346, MCL
125.1411.
(B)
Is contiguous to a city with a population of 500,000 or
more.
(C)
Has a population of 10,000 or more that is located outside
of
an urbanized area as delineated by the United States bureau of
the
census.
(D)
Is the central city of a metropolitan area designated by
the
United States office of management and budget.
(E)
Has a population of 100,000 or more that is located in a
county
with a population of 2,000,000 or more according to the 1990
federal
decennial census.
(ii) A township with a median family income of 150% or
less of
the
statewide median family income as reported in the 1990 federal
decennial
census that meets 1 or more of the following criteria:
(A)
Is contiguous to a city with a population of 500,000 or
more.
(B)
All of the following:
(I)
Contains or has within its borders an eligible distressed
area
as that term is defined in section 11(u)(ii) of the state
housing
development authority act of 1966, 1966 PA 346, MCL
125.1411.
(II)
Has a population of 10,000 or more.
(iii) A village with a population of 500 or more as
reported
in
the 1990 federal decennial census located in an area designated
as
a rural enterprise community before 1998 under title XIII of the
omnibus
budget reconciliation act of 1993, Public Law 103-66, 107
Stat.
416.
(iv) A city that meets all of the following criteria:
(A)
Has a population of more than 20,000 or less than 5,000
and
is located in a county with a population of 2,000,000 or more
according
to the 1990 federal decennial census.
(B)
As of January 1, 2000, has an overall increase in the
state
equalized valuation of real and personal property of less
than
65% of the statewide average increase since 1972 as determined
for
the designation of eligible distressed areas under section
11(u)(ii)(B) of the state housing development authority act
of
1966,
1966 PA 346, MCL 125.1411.
(l) "Rehabilitation" means changes to obsolete property other
than replacement that are required to restore or modify the
property, together with all appurtenances, to an economically
efficient condition. Rehabilitation includes major renovation and
modification including, but not necessarily limited to, the
improvement of floor loads, correction of deficient or excessive
height, new or improved fixed building equipment, including
heating, ventilation, and lighting, reducing multistory facilities
to 1 or 2 stories, adding additional stories to a facility or
adding additional space on the same floor level not to exceed 100%
of the existing floor space on that floor level, improved
structural support including foundations, improved roof structure
and cover, floor replacement, improved wall placement, improved
exterior and interior appearance of buildings, and other physical
changes required to restore or change the obsolete property to an
economically efficient condition. Rehabilitation shall not include
improvements aggregating less than 10% of the true cash value of
the property at commencement of the rehabilitation of the obsolete
property.
(m) "Rehabilitated facility" means a commercial property or
commercial housing property that has undergone rehabilitation or is
in the process of being rehabilitated, including rehabilitation
that changes the intended use of the building. A rehabilitated
facility does not include property that is to be used as a
professional sports stadium. A rehabilitated facility does not
include property that is to be used as a casino. As used in this
subdivision, "casino" means a casino or a parking lot, hotel,
motel, or retail store owned or operated by a casino, an affiliate,
or an affiliated company, regulated by this state pursuant to the
Michigan
gaming control and revenue act, the Initiated Law of 1996
IL 1, MCL 432.201 to 432.226.
(n) "Taxable value" means the value determined under section
27a of the general property tax act, 1893 PA 206, MCL 211.27a.