HOUSE BILL No. 6283

 

September 29, 2004, Introduced by Reps. Emmons, Acciavatti, Tabor, Nitz, Pastor, LaJoy, Bisbee, Vander Veen, Shaffer, Meyer, Gaffney, Steil, Amos, Walker, Voorhees, Howell, Palmer, DeRoche and Hune and referred to the Committee on Commerce.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1996 PA 376, entitled                                             

                                                                                

    "Michigan renaissance zone act,"                                            

                                                                                

    by amending sections 8a and 9 (MCL 125.2688a and 125.2689),                 

                                                                                

    section 8a as amended by 2002 PA 587.                                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 8a.  (1) Except as provided in subsections (2), (3),                   

                                                                                

2   and (4), the board shall not designate more than 9 additional               

                                                                                

3   renaissance zones within this state under this section.  Not more           

                                                                                

4   than 6 of the renaissance zones shall be located in urban areas             

                                                                                

5   and not more than 5 of the renaissance zones shall be located in            

                                                                                

6   rural areas.  For purposes of determining whether a renaissance             

                                                                                

7   zone is located in an urban area or rural area under this                   

                                                                                

8   section, if any part of a renaissance zone is located within an             

                                                                                

9   urban area, the entire renaissance zone shall be considered to be           

                                                                                

10  located in an urban area.                                                   

                                                                                


                                                                                

1       (2) The board of the Michigan strategic fund described in                   

                                                                                

2   section 4 of the Michigan strategic fund act, 1984 PA 270,                  

                                                                                

3   MCL 125.2004, may designate not more than  5  6 additional                  

                                                                                

4   renaissance zones within this state in 1 or more cities,                    

                                                                                

5   villages, or townships if that city, village, or township or                

                                                                                

6   combination of cities, villages, or townships consents to the               

                                                                                

7   creation of a renaissance zone within their boundaries.  The                

                                                                                

8   board of the Michigan strategic fund may designate not more than            

                                                                                

9   1 of the 5 additional renaissance zones described in this                   

                                                                                

10  subsection as an alternative energy zone.  An alternative energy            

                                                                                

11  zone shall promote and increase the research, development, and              

                                                                                

12  manufacturing of alternative energy technology as that term is              

                                                                                

13  defined in the Michigan next energy authority act.  An                      

                                                                                

14  alternative energy zone shall have a duration of renaissance zone           

                                                                                

15  status for a period not to exceed 20 years as determined by the             

                                                                                

16  board of the Michigan strategic fund.  Not later than 18 months             

                                                                                

17  after the effective date of the amendatory act that added                   

                                                                                

18  subsection (6), the board of the Michigan strategic fund may                

                                                                                

19  designate not more than 1 of the 5 additional renaissance zones             

                                                                                

20  described in this subsection as a pharmaceutical renaissance                

                                                                                

21  zone.  A pharmaceutical renaissance zone shall promote and                  

                                                                                

22  increase the research, development, and manufacturing of                    

                                                                                

23  pharmaceutical products of an eligible pharmaceutical company.              

                                                                                

24  The board of the Michigan strategic fund may designate not more             

                                                                                

25  than 1 of the additional 6 renaissance zones described in this              

                                                                                

26  subsection as a redevelopment renaissance zone.  A redevelopment            

                                                                                

27  renaissance zone shall promote the redevelopment of existing                


                                                                                

1   industrial facilities.                                                      

                                                                                

2       (3) In addition to the not more than 9 additional renaissance               

                                                                                

3   zones described in subsection (1), the board may designate                  

                                                                                

4   additional renaissance zones within this state in 1 or more                 

                                                                                

5   qualified local governmental units if that qualified local                  

                                                                                

6   governmental unit or units contain a military installation that             

                                                                                

7   was operated by the United States department of defense and was             

                                                                                

8   closed in 1977 or after 1990.                                               

                                                                                

9       (4) Land owned by a county or the qualified local                           

                                                                                

10  governmental unit or units adjacent to a zone as described in               

                                                                                

11  subsection (3) may be included in this zone.                                

                                                                                

12      (5) Notwithstanding any other provision of this act, property               

                                                                                

13  located in the alternative energy zone that is classified as                

                                                                                

14  commercial real property under section 34c of the general                   

                                                                                

15  property tax act, 1893 PA 206, MCL 211.34c, and that the                    

                                                                                

16  authority, with the concurrence of the assessor of the local tax            

                                                                                

17  collecting unit, determines is not used to directly promote and             

                                                                                

18  increase the research, development, and manufacturing of                    

                                                                                

19  alternative energy technology is not eligible for any exemption,            

                                                                                

20  deduction, or credit under section 9.                                       

                                                                                

21      (6) As used in this section:  , "eligible                                   

                                                                                

22      (a) "Eligible pharmaceutical company" means a company that                  

                                                                                

23  meets all of the following criteria:                                        

                                                                                

24                                                                               (i)  (a)  Is engaged primarily in manufacturing, research and                        

                                                                                

25  development, and sale of pharmaceuticals.                                   

                                                                                

26      (ii)  (b)  Has not less than 8,500 employees located in this                 

                                                                                

27  state, all of whom are located within a 100-mile radius of each             


                                                                                

1   other.                                                                      

                                                                                

2       (iii)  (c)  Of the total number of employees located in this                 

                                                                                

3   state, has not less than 5,000 engaged primarily in research and            

                                                                                

4   development of pharmaceuticals.                                             

                                                                                

5       (b) "Redevelopment renaissance zone" means a renaissance zone               

                                                                                

6   that means all of the following:                                            

                                                                                

7                                                                                (i) Is located in a city with a population of more than 7,500                       

                                                                                

8   and less than 8,500 and is located in a county with a population            

                                                                                

9   of more than 60,000 and less than 70,000.                                   

                                                                                

10      (ii) Contains an industrial site of 200 or more acres.                       

                                                                                

11      Sec. 9.  (1) Except as otherwise provided in section 10 and                 

                                                                                

12  this subsection, an individual who is a resident of a renaissance           

                                                                                

13  zone or a business that is located and conducts business activity           

                                                                                

14  within a renaissance zone shall receive the exemption, deduction,           

                                                                                

15  or credit as provided in the following for the period provided              

                                                                                

16  under section 6(2)(b):                                                      

                                                                                

17      (a) Section 39b of the single business tax act,  Act No. 228                

                                                                                

18  of the Public Acts of 1975, being section 208.39b of the Michigan           

                                                                                

19  Compiled Laws  1975 PA 228, MCL 208.39b.                                    

                                                                                

20      (b) Section 31 of the income tax act of 1967,  Act No. 281 of               

                                                                                

21  the Public Acts of 1967, being section 206.31 of the Michigan               

                                                                                

22  Compiled Laws  1967 PA 281, MCL 206.31.                                     

                                                                                

23      (c)  Section  Except for an individual who is a resident of a               

                                                                                

24  redevelopment renaissance zone or a business that is located and            

                                                                                

25  conducts business activity within a redevelopment renaissance               

                                                                                

26  zone, section 35 of chapter 2 of the city income tax act,  Act              

                                                                                

27  No. 284 of the Public Acts of 1964, being section 141.635 of the            


                                                                                

1   Michigan Compiled Laws  1964 PA 284, MCL 141.635.                           

                                                                                

2       (d) Section 5 of the city utility users tax act,  Act No. 100               

                                                                                

3   of the Public Acts of 1990, being section 141.1155 of the                   

                                                                                

4   Michigan Compiled Laws  1990 PA 100, MCL 141.1155.                          

                                                                                

5       (2) Except as otherwise provided in section 10, property                    

                                                                                

6   located in a renaissance zone is exempt from the collection of              

                                                                                

7   taxes under all of the following:                                           

                                                                                

8       (a)  Section  Except for an individual who is a resident of a               

                                                                                

9   redevelopment renaissance zone or a business that is located and            

                                                                                

10  conducts business activity within a redevelopment renaissance               

                                                                                

11  zone, section 7ff of the general property tax act,  Act No. 206             

                                                                                

12  of the Public Acts of 1893, being section 211.7ff of the Michigan           

                                                                                

13  Compiled Laws  1893 PA 206, MCL 211.7ff.                                    

                                                                                

14      (b) Section 11 of  Act No. 198 of the Public Acts of 1974,                  

                                                                                

15  being section 207.561 of the Michigan Compiled Laws  1974 PA 198,           

                                                                                

16  MCL 207.561.                                                                

                                                                                

17      (c) Section 12 of the commercial redevelopment act,  Act                    

                                                                                

18  No. 255 of the Public Acts of 1978, being section 207.662 of the            

                                                                                

19  Michigan Compiled Laws  1978 PA 255, MCL 207.662.                           

                                                                                

20      (d) Section 21c of the enterprise zone act,  Act No. 224 of                 

                                                                                

21  the Public Acts of 1985, being section 125.2121c of the Michigan            

                                                                                

22  Compiled Laws  1985 PA 224, MCL 125.2121c.                                  

                                                                                

23      (e) Section 1 of  Act No. 189 of the Public Acts of 1953,                   

                                                                                

24  being section 211.181 of the Michigan Compiled Laws  1953 PA 189,           

                                                                                

25  MCL 211.181.                                                                

                                                                                

26      (f) Section 12 of the technology park development act,  Act                 

                                                                                

27  No. 385 of the Public Acts of 1984, being section 207.712 of the            


                                                                                

1   Michigan Compiled Laws  1984 PA 385, MCL 207.712.                           

                                                                                

2       (g) Section 51105  of part 511 (commercial forests)  of the                 

                                                                                

3   natural resources and environmental protection act,  Act No. 451            

                                                                                

4   of the Public Acts of 1994, being section 324.51105 of the                  

                                                                                

5   Michigan Compiled Laws  1994 PA 451, MCL 324.51105.                         

                                                                                

6       (h) Section 9 of the neighborhood enterprise zone act,  Act                 

                                                                                

7   No. 147 of the Public Acts of 1992, being section 207.779 of the            

                                                                                

8   Michigan Compiled Laws  1992 PA 147, MCL 207.779.                           

                                                                                

9       (3) During the last 3 years that the taxpayer is eligible for               

                                                                                

10  an exemption, deduction, or credit described in subsections (1)             

                                                                                

11  and (2), the exemption, deduction, or credit shall be reduced by            

                                                                                

12  the following percentages:                                                  

                                                                                

13      (a) For the tax year that is 2 years before the final year of               

                                                                                

14  designation as a renaissance zone, the percentage shall be 25%.             

                                                                                

15      (b) For the tax year immediately preceding the final year of                

                                                                                

16  designation as a renaissance zone, the percentage shall be 50%.             

                                                                                

17      (c) For the tax year that is the final year of designation as               

                                                                                

18  a renaissance zone, the percentage shall be 75%.