March 22, 2005, Introduced by Reps. Gaffney, McConico, Virgil Smith, Hunter, Cheeks, Cushingberry, Leland, Tobocman, Alma Smith, Lemmons, III and Waters and referred to the Committee on Commerce.
A bill to amend 1992 PA 147, entitled
"Neighborhood enterprise zone act,"
by amending section 9 (MCL 207.779), as amended by 2003 PA 127.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
9. (1) Except as provided in subsection (10) (14),
there is levied on the owner of a homestead facility, a new
facility, or a rehabilitated facility to which a neighborhood
enterprise zone certificate is issued a specific tax known as the
neighborhood enterprise zone tax.
(2) A homestead facility, a new facility, or a rehabilitated
facility for which a neighborhood enterprise zone certificate is in
effect, but not the land on which the facility is located, is
exempt from ad valorem real property taxes collected under the
general property tax act, 1893 PA 206, MCL 211.1 to 211.157.
(3) The
Except as otherwise provided
in this section, the
amount of the neighborhood enterprise zone tax on a new facility is
determined each year by multiplying the taxable value of the
facility, not including the land, by 1 of the following:
(a) For property that would otherwise meet the definition of a
principal residence under section 7dd of the general property tax
act, 1893 PA 206, MCL 211.7dd, if that property was not exempt from
ad valorem property taxes under this act, 1/2 of the average rate
of taxation levied in this state in the immediately preceding
calendar year on a principal residence and qualified agricultural
property as defined in section 7dd of the general property tax act,
1893 PA 206, MCL 211.7dd. However, in 1994 only, the average rate
of taxation shall be the average rate of taxation levied in 1993
upon all property in this state upon which ad valorem taxes are
assessed.
(b) For property that is not a principal residence under
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd, 1/2 of the average rate of taxation levied upon
commercial, industrial, and utility property upon which ad valorem
taxes are assessed as determined for the immediately preceding
calendar year by the state board of assessors under section 13 of
1905 PA 282, MCL 207.13. However, in 1994 only, the average rate of
taxation shall be the average rate of taxation levied in 1993 upon
all property in this state upon which ad valorem taxes are
assessed.
(4) The
Except as otherwise provided
in this section, the
amount of the neighborhood enterprise zone tax on a rehabilitated
facility is determined each year by multiplying the taxable value
of the rehabilitated facility, not including the land, for the tax
year immediately preceding the effective date of the neighborhood
enterprise zone certificate by the total mills collected under the
general property tax act, 1893 PA 206, MCL 211.1 to 211.157, for
the current year by all taxing units within which the rehabilitated
facility is located.
(5) Except as otherwise provided in this section, the amount
of the neighborhood enterprise zone tax on a homestead facility is
the sum of all the following:
(a) One-half the number of mills levied for operating purposes
by the local governmental unit in which the neighborhood enterprise
zone is located multiplied by the current taxable value of the
homestead facility not including the land.
(b) One-half the number of mills levied for operating purposes
by the county in which the neighborhood enterprise zone is located
multiplied by the current taxable value of the homestead facility
not including the land.
(c) The total number of mills collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.157, for the
current year by all taxing jurisdictions within which the homestead
facility is located excluding the number of mills levied for
operating purposes by the local governmental unit and county in
which the homestead facility is located multiplied by the current
taxable value of the homestead facility not including the land.
(6) In the year 2 years before the year in which the
neighborhood enterprise zone certificate expires for a homestead
facility, for a new facility or a rehabilitated facility in which
the neighborhood enterprise zone certificate was issued after
December 31, 2004, or for a new facility or a rehabilitated
facility in which the neighborhood enterprise zone certificate was
extended 3 years under section 12(1), the neighborhood enterprise
zone tax is the sum of all the following:
(a) Five-eighths the number of mills levied for operating
purposes by the local governmental unit in which the neighborhood
enterprise zone is located multiplied by the current taxable value
of the facility not including the land.
(b) Five-eighths the number of mills levied for operating
purposes by the county in which the neighborhood enterprise zone is
located multiplied by the current taxable value of the facility not
including the land.
(c) The total number of mills collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.157, for the
current year by all taxing jurisdictions within which the facility
is located excluding the number of mills levied for operating
purposes by the local governmental unit and county in which the
facility is located multiplied by the current taxable value of the
facility not including the land.
(7) In the year before the year in which the neighborhood
enterprise zone certificate expires for a homestead facility, for a
new facility or a rehabilitated facility in which the neighborhood
enterprise zone certificate was issued after December 31, 2004, or
for a new facility or a rehabilitated facility in which the
neighborhood enterprise zone certificate was extended 3 years under
section 12(1), the neighborhood enterprise zone tax is the sum of
all the following:
(a) Three-fourths the number of mills levied for operating
purposes by the local governmental unit in which the neighborhood
enterprise zone is located multiplied by the current taxable value
of the facility not including the land.
(b) Three-fourths the number of mills levied for operating
purposes by the county in which the neighborhood enterprise zone is
located multiplied by the current taxable value of the facility not
including the land.
(c) The total number of mills collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.157, for the
current year by all taxing jurisdictions within which the facility
is located excluding the number of mills levied for operating
purposes by the local governmental unit and county in which the
facility is located multiplied by the current taxable value of the
facility not including the land.
(8) In the year in which the neighborhood enterprise zone
certificate expires for a homestead facility, for a new facility or
a rehabilitated facility in which the neighborhood enterprise zone
certificate was issued after December 31, 2004, or for a new
facility or a rehabilitated facility in which the neighborhood
enterprise zone certificate was extended 3 years under section
12(1), the neighborhood enterprise zone tax is the sum of all the
following:
(a) Seven-eighths the number of mills levied for operating
purposes by the local governmental unit in which the neighborhood
enterprise zone is located multiplied by the current taxable value
of the facility not including the land.
(b) Seven-eighths the number of mills levied for operating
purposes by the county in which the neighborhood enterprise zone is
located multiplied by the current taxable value of the facility not
including the land.
(c) The total number of mills collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.157, for the
current year by all taxing jurisdictions within which the facility
is located excluding the number of mills levied for operating
purposes by the local governmental unit and county in which the
facility is located multiplied by the current taxable value of the
facility not including the land.
(9) (5)
The neighborhood enterprise zone tax is an annual
tax, payable at the same times, in the same installments, and to
the same officer or officers as taxes collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.157, are payable.
Except as otherwise provided in this section, the officer or
officers shall disburse the neighborhood enterprise zone tax
received by the officer or officers each year to the state, cities,
townships, villages, school districts, counties, and authorities at
the same times and in the same proportions as required for the
disbursement of taxes collected under the general property tax act,
1893 PA 206, MCL 211.1 to 211.157. To determine the proportion for
the disbursement of taxes under this subsection and for attribution
of
taxes under subsection (7) (11)
for taxes collected after June
30, 1994, the number of mills levied for local school district
operating purposes to be used in the calculation shall equal the
number of mills for local school district operating purposes levied
in 1993 minus the number of mills levied under the state education
tax act, 1993 PA 331, MCL 211.901 to 211.906, for the year for
which the disbursement is calculated. Local tax collection officers
shall disburse the proceeds of the neighborhood enterprise zone tax
collected on homestead facilities under subsection (5) and on
homestead facilities, new facilities, and rehabilitated facilities
under subsections (6), (7), and (8) each year to the state, cities,
townships, villages, school districts, counties, and authorities in
an amount equal to the sum of the proceeds of the neighborhood
enterprise zone tax collected on the facility multiplied by a
fraction in which the numerator is the number of mills levied by
the taxing unit that was used to calculate the specific tax on the
facility and the denominator is the total number of mills levied by
all the taxing units that was used to calculate the specific tax in
which the property is located.
(10) (6)
An intermediate school district
receiving state aid
under sections 56, 62, and 81 of the state school aid act of 1979,
1979 PA 94, MCL 388.1656, 388.1662, and 388.1681, of the amount
that would otherwise be disbursed to or retained by the
intermediate school district, all or a portion, to be determined on
the basis of the tax rates being utilized to compute the amount of
state aid, shall be paid to the state treasury to the credit of the
state school aid fund established by section 11 of article IX of
the state constitution of 1963. If and for the period that the
state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772,
is amended or its successor act is enacted or amended to include a
provision that provides for adjustments in state school aid to
account for the receipt of revenues provided under this act in
place of exempted ad valorem property tax, revenues required to be
remitted or returned to the state treasury to the credit of the
state school aid fund shall be distributed instead to the
intermediate school districts. If the sum of any industrial
facility tax levied under 1974 PA 198, MCL 207.551 to 207.572, the
commercial facilities tax levied under the commercial redevelopment
act, 1978 PA 255, MCL 207.651 to 207.668, and the neighborhood
enterprise zone tax paid to the state treasury to the credit of the
state school aid fund that would otherwise be disbursed to the
intermediate school district exceeds the amount received by the
intermediate school district under sections 56, 62, and 81 of the
state school aid act of 1979, 1979 PA 94, MCL 388.1656, 388.1662,
and 388.1681, the department of treasury shall allocate to each
eligible intermediate school district an amount equal to the
difference between the sum of the industrial facility tax, the
commercial facilities tax, and the neighborhood enterprise zone tax
paid to the state treasury to the credit of the state school aid
fund and the amount the intermediate school district received under
sections 56, 62, and 81 of the state school aid act of 1979, 1979
PA 94, MCL 388.1656, 388.1662, and 388.1681.
(11) (7)
For neighborhood enterprise zone taxes levied after
1993 for school operating purposes, the amount that would otherwise
be disbursed to a local school district shall be paid instead to
the state treasury and credited to the state school aid fund
established by section 11 of article IX of the state constitution
of 1963.
(12) (8)
The officer or officers shall send a copy of the
amount of disbursement made to each unit under this section to the
commission on a form provided by the commission. The neighborhood
enterprise zone tax is a lien on the real property upon which the
new facility or rehabilitated facility subject to the certificate
is located until paid. The continuance of a certificate is
conditional upon the annual payment of the neighborhood enterprise
zone tax and the ad valorem tax on the land collected under the
general property tax act, 1893 PA 206, MCL 211.1 to 211.157.
(13) (9)
If payment of the tax under this act is not made by
the March 1 following the levy of the tax, the tax shall be turned
over to the county treasurer and collected in the same manner as a
delinquent tax under the general property tax act, 1893 PA 206, MCL
211.1 to 211.157.
(14) (10)
A homestead
facility, a new facility, or a
rehabilitated facility located in a renaissance zone under the
Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to
125.2696, is exempt from the neighborhood enterprise zone tax
levied under this act to the extent and for the duration provided
pursuant to the Michigan renaissance zone act, 1996 PA 376, MCL
125.2681 to 125.2696, except for that portion of the neighborhood
enterprise zone tax attributable to a special assessment or a tax
described in section 7ff(2) of the general property tax act, 1893
PA 206, MCL 211.7ff. The neighborhood enterprise zone tax
calculated under this subsection shall be disbursed proportionately
to the local taxing unit or units that levied the special
assessment or the tax described in section 7ff(2) of the general
property tax act, 1893 PA 206, MCL 211.7ff.