SENATE BILL No. 917

 

 

November 27, 2007, Introduced by Senator BARCIA and referred to the Committee on Economic Development and Regulatory Reform.

 

 

 

     A bill to amend 2005 PA 210, entitled

 

"Commercial rehabilitation act,"

 

by amending section 2 (MCL 207.842), as amended by 2006 PA 554.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Commercial property" means land improvements classified

 

by law for general ad valorem tax purposes as real property

 

including real property assessable as personal 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 or multifamily

 

residential use. 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.

 

Commercial property does not include any of the following:

 

     (i) Land.

 

     (ii) Property of a public utility.

 

     (b) "Commercial rehabilitation district" or "district" means

 

an area not less than 3 acres in size of a qualified local

 

governmental unit established as provided in section 3. However, if

 

the commercial rehabilitation district is located in a downtown or

 

business area as determined by the legislative body of the

 

qualified local governmental unit, the district may be less than 3

 

acres in size.

 

     (c) "Commercial rehabilitation exemption certificate" or

 

"certificate" means the certificate issued under section 6.

 

     (d) "Commercial rehabilitation tax" means the specific tax

 

levied under this act.

 

     (e) "Commission" means the state tax commission created by

 

1927 PA 360, MCL 209.101 to 209.107.

 

     (f) "Department" means the department of treasury.

 

     (g) "Multifamily residential use" means multifamily housing

 

consisting of 5 or more units.

 

     (h) "Qualified facility" means a building or group of

 

contiguous buildings of commercial property that is 15 years old or


 

older or has been allocated for a new markets tax credit under

 

section 45d of the internal revenue code, 26 USC 45d. Qualified

 

facility also includes vacant property on which commercial property

 

will be newly constructed. A qualified facility does not include

 

property that is to be used as a professional sports stadium. A

 

qualified 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.

 

     (i) "Qualified local governmental unit" means a city, village,

 

or township.

 

     (j) "Rehabilitation" means changes to a qualified facility

 

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,

 

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

 

also includes new construction on vacant property if the new


 

construction is an economic benefit to the local community as

 

determined by the qualified local governmental unit. Rehabilitation

 

shall not include improvements aggregating less than 10% of the

 

true cash value of the property at commencement of the

 

rehabilitation of the qualified facility.

 

     (k) "Taxable value" means the value determined under section

 

27a of the general property tax act, 1893 PA 206, MCL 211.27a.