HB-5349, As Passed Senate, December 3, 2010
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 5349
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending sections 3, 6, 8a, and 10 (MCL 125.2683, 125.2686,
125.2688a, and 125.2690), section 3 as amended by 2010 PA 64,
sections 6 and 10 as amended by 2008 PA 242, and section 8a as
amended by 2008 PA 116, and by adding section 8h.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Agricultural processing facility" means 1 or more
facilities or operations that transform, package, sort, or grade
livestock or livestock products, agricultural commodities, or
plants or plant products, excluding forest products, into goods
that are used for intermediate or final consumption including goods
for nonfood use, and surrounding property.
(b) "Board" means the state administrative board created in
1921 PA 2, MCL 17.1 to 17.3.
(c) "Border crossing facility" means a business that is 1 or
more of the following as determined by the board of the Michigan
strategic fund:
(i) That was located in a qualified border local governmental
unit as defined in section 8g and was displaced or otherwise
negatively affected by the development of the international border
crossing and is unable to recover from the displacement or negative
effect without the establishment of a renaissance zone.
(ii) That is associated with international trade, shipping, or
freight hauling, including, but not limited to, all of the
following:
(A) Customs brokers.
(B) Distribution centers.
(C) Truck supply and repair.
(d) "Development plan" means a written plan that addresses the
criteria in section 7 and includes all of the following:
(i) A map of the proposed renaissance zone that indicates the
geographic boundaries, the total area, and the present use and
conditions generally of the land and structures within those
boundaries.
(ii) Evidence of community support and commitment from
residential and business interests.
(iii) A description of the methods proposed to increase economic
opportunity and expansion, facilitate infrastructure improvement,
and identify job training opportunities.
(iv) Current social, economic, and demographic characteristics
of the proposed renaissance zone and anticipated improvements in
education, health, human services, public safety, and employment if
the renaissance zone is created.
(v) Any other information required by the board.
(e) "Elected county executive" means the elected county
executive in a county organized under 1966 PA 293, MCL 45.501 to
45.521, or 1973 PA 139, MCL 45.551 to 45.573.
(f) "Eligible next Michigan business" means a business engaged
in the shipment of tangible personal property via multimodal
commerce; a supply chain business providing a majority of its
services to businesses engaged in the shipment of tangible personal
property, including inventory, via multimodal commerce; a
manufacturing or assembly facility receiving a majority of its
production components via multimodal commerce; a manufacturing or
assembly facility shipping a majority of products via multimodal
commerce; or a light manufacturing or assembly facility that
packages, kits, labels, or customizes products and ships those
products via multimodal commerce.
(g) (f)
"Forest products processing
facility" means 1 or more
facilities or operations that transform, package, sort, recycle, or
grade forest or paper products into goods that are used for
intermediate or final use or consumption or for the creation of
biomass or alternative fuels through the utilization of forest
products or forest residue, and surrounding property. Forest
products processing facility does not include an existing facility
or operation that is located in this state that relocates to a
renaissance zone for a forest products processing facility. Forest
products processing facility does not include a facility or
operation that engages primarily in retail sales.
(h) (g)
"Local governmental unit"
means a county, city,
village,
or township, or, for taxes
levied after 2009, any other
taxing jurisdiction that levies an ad valorem property tax.
(i) "Multimodal commerce" means the movement of products or
services via 2 or more of the following:
(i) Air.
(ii) Road.
(iii) Rail.
(iv) Water.
(j) "Next Michigan development corporation" means that term as
defined in section 3 of the next Michigan development act.
(k) "Next Michigan development district" means that term as
defined in section 3 of the next Michigan development act.
(l) "Next Michigan renaissance zone" means a renaissance zone
created under section 8h.
(m) (h)
"Person" means an
individual, partnership,
corporation, association, limited liability company, governmental
entity, or other legal entity.
(n) "Qualified eligible next Michigan business" means an
eligible next Michigan business that has been certified in
accordance with section 8h.
(o) (i)
"Qualified local governmental
unit" means either of
the following:
(i) A county.
(ii) A city, village, or township that contains an eligible
distressed area as defined in section 11 of the state housing
development authority act of 1966, 1966 PA 346, MCL 125.1411.
(p) (j)
"Recovery zone" means a
tool and die renaissance
recovery zone created in section 8d.
(q) (k)
"Renaissance zone" means
a geographic area designated
under this act.
(r) (l) "Renewable
energy facility" means a facility that
creates energy, fuels, or chemicals directly from the wind, the
sun, trees, grasses, biosolids, algae, agricultural commodities,
processed products from agricultural commodities, or residues from
agricultural processes, wood or forest processes, food production
and processing, or the paper products industry. Renewable energy
facility also includes a facility that creates energy, fuels, or
chemicals from solid biomass, animal wastes, or landfill gases.
Renewable energy facility also includes a facility that focuses on
research, development, or manufacturing of systems or components of
systems used to create energy, fuel, or chemicals from the items
described in this subdivision. Renewable energy facility also
includes a facility that focuses on research, development, or
manufacturing of systems or components of systems that involve the
conversion of chemical energy for advanced battery technology.
(s) (m)
"Residential rental
property" means that term as
defined in section 7ff of the general property tax act, 1893 PA
206, MCL 211.7ff.
(t) (n)
"Review board" means the
renaissance zone review board
created in section 5.
(u) (o)
"Rural area" means an
area that lies outside of the
boundaries of an urban area.
(v) (p)
"Urban area" means an
urbanized area as determined by
the economics and statistics administration, United States bureau
of the census according to the 1990 census.
Sec. 6. (1) The board shall review all recommendations
submitted by the review board and determine which applications meet
the criteria contained in section 7.
(2) The board shall do all of the following:
(a) Designate renaissance zones.
(b) Subject to subsection (3), approve or reject the duration
of renaissance zone status.
(c) Subject to subsection (3), approve or reject the
geographic boundaries and the total area of the renaissance zone as
submitted in the application.
(3) The board shall not alter the geographic boundaries of the
renaissance zone or the duration of renaissance zone status
described in the application unless the qualified local
governmental unit or units and the local governmental unit or units
in which the renaissance zone is to be located consent by
resolution to the alteration.
(4) The board shall not designate a renaissance zone under
section 8 before November 1, 1996 or after December 31, 1996.
(5) Except as otherwise provided in this subsection, the
designation of a renaissance zone under this act shall take effect
on January 1 in the year following designation. However, for
purposes of the taxes exempted under section 9(2), the designation
of a renaissance zone under this act shall take effect on December
31 in the year of designation. For designations made pursuant to
section 8a(2), the board of the Michigan strategic fund may choose
a beginning date, provided that the date must be January 1 of a
year and must not be more than 5 years after the date of
designation. The board of the Michigan strategic fund may provide
that the January 1 beginning date be determined under a written
agreement between the board of the Michigan strategic fund and the
qualified local governmental unit in which the renaissance zone is
to be located. However, for purposes of the taxes exempted under
section 9(2), the designation of a renaissance zone under section
8a(2) shall take effect on December 31 in the year immediately
preceding the year in which the designation under section 8a(2)
takes effect.
(6) The board shall not designate a renaissance zone under
section 8a after December 31, 2002.
(7) Through December 31, 2002, a qualified local governmental
unit in which a renaissance zone was designated under section 8 or
8a may modify the boundaries of that renaissance zone to include
contiguous parcels of property as determined by the qualified local
governmental unit and approval by the review board. The additional
contiguous parcels of property included in a renaissance zone under
this subsection do not constitute an additional distinct geographic
area under section 4(1)(d). If the boundaries of the renaissance
zone are modified as provided in this subsection, the additional
contiguous parcels of property shall become part of the original
renaissance zone on the same terms and conditions as the original
designation of that renaissance zone.
(8) Notwithstanding any other provisions of this act, before
July 1, 2004, a qualified local governmental unit in which a
renaissance zone was designated under section 8a(1) as a
renaissance zone located in a rural area may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than .5 acres in size and that the qualified local
governmental unit previously sought to have included in the zone by
submitting an application in February 2002 that was not acted upon
by the review board. The additional contiguous parcel of property
included in a renaissance zone under this subsection does not
constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
(9) A business that is located and conducts business activity
within a renaissance zone designated under this act, except as
designated under section 8a(2) before December 1, 2010, shall not
make a payment in lieu of taxes to any taxing jurisdiction within
the qualified local governmental unit in which the renaissance zone
is located.
(10) Notwithstanding any other provisions of this act, before
July 1, 2006, a qualified local governmental unit in which a
renaissance zone of less than 50 contiguous acres but more than 20
contiguous acres was designated under section 8 or 8a as a
renaissance zone in a city located in a county with a population of
more than 160,000 and less than 170,000 may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than 12 acres in size. The additional contiguous parcel of
property included in a renaissance zone under this subsection does
not constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
(11) Notwithstanding any other provisions of this act, before
July 1, 2006, a qualified local governmental unit in which a
renaissance zone of more than 500 acres was designated under
section 8 or 8a as a renaissance zone in a county with a population
of more than 61,000 and less than 64,000 may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than 12 acres in size. The additional contiguous parcel of
property included in a renaissance zone under this subsection does
not constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
(12) Notwithstanding any other provisions of this act, before
July 1, 2006, a qualified local governmental unit in which a
renaissance zone of more than 137 acres was designated under
section 8 or 8a as a renaissance zone in a county with a population
of more than 61,000 and less than 63,000 may modify the boundaries
of that renaissance zone to include a parcel of property that is
separated from the existing renaissance zone by a roadway as
determined by the qualified local governmental unit. The parcel of
property shall only include property that is less than 67 acres in
size. The additional contiguous parcel of property included in a
renaissance zone under this subsection does not constitute an
additional distinct geographic area under section 4(1)(d). If the
boundaries of the renaissance zone are modified as provided in this
subsection, the additional contiguous parcel of property shall
become part of the original renaissance zone on the same terms and
conditions as the rest of the property in that renaissance zone.
Sec. 8a. (1) Except as provided in subsections (2), (3), and
(4), the board shall not designate more than 9 additional
renaissance zones within this state under this section. Not more
than 6 of the renaissance zones shall be located in urban areas and
not more than 5 of the renaissance zones shall be located in rural
areas. For purposes of determining whether a renaissance zone is
located in an urban area or rural area under this section, if any
part of a renaissance zone is located within an urban area, the
entire renaissance zone shall be considered to be located in an
urban area.
(2) The board of the Michigan strategic fund described in
section 4 of the Michigan strategic fund act, 1984 PA 270, MCL
125.2004,
may designate not more than 17 27
additional renaissance
zones within this state in 1 or more cities, villages, or townships
if that city, village, or township or combination of cities,
villages, or townships consents to the creation of a renaissance
zone within their boundaries. The board of the Michigan strategic
fund
may designate not more than 1 of the 17 27 additional
renaissance zones described in this subsection as an alternative
energy zone. An alternative energy zone shall promote and increase
the research, development, testing, and manufacturing of
alternative energy technology, alternative energy systems, and
alternative energy vehicles, as those terms are defined in the
Michigan next energy authority act, 2002 PA 593, MCL 207.821 to
207.827. An alternative energy zone shall have a duration of
renaissance zone status for a period not to exceed 20 years as
determined by the board of the Michigan strategic fund. The board
of the Michigan strategic fund may designate not more than 8 of the
additional
17 27 renaissance zones described in this subsection as
a redevelopment renaissance zone. A redevelopment renaissance zone
shall promote the redevelopment of existing industrial facilities
or the development of property for industrial purposes. The board
of the Michigan strategic fund may designate not more than 1 of the
17
27 additional renaissance zones described in this
subsection as
a pharmaceutical recovery renaissance zone. A pharmaceutical
recovery renaissance zone shall promote the development or
redevelopment of existing underutilized facilities currently
occupied or formerly occupied by a pharmaceutical company. Before
designating a renaissance zone under this subsection, the board of
the Michigan strategic fund may enter into a development agreement
with the city, township, or village in which the renaissance zone
will be located and the owner or developer of the facility or
property located in the renaissance zone. The development agreement
for a redevelopment renaissance zone described only in subsection
(6)(b)(vi) or (vii) may provide for the payment of 1 or more of the
taxes described in section 9. Not fewer than 3 of the 10 additional
renaissance zones created under this subsection on or after
December 1, 2010 shall be located in rural areas. Until the maximum
number of qualified eligible next Michigan businesses are certified
under section 8h(10), the board shall not designate an additional
renaissance zone under this subsection if that additional
renaissance zone would include a business that is an eligible next
Michigan business that is eligible to be certified as a qualified
eligible next Michigan business under this act.
(3) In addition to the not more than 9 additional renaissance
zones described in subsection (1), the board may designate
additional renaissance zones within this state in 1 or more
qualified local governmental units if that qualified local
governmental unit or units contain a military installation that was
operated by the United States department of defense and was closed
in 1977 or after 1990.
(4) Land owned by a county or the qualified local governmental
unit or units adjacent to a zone as described in subsection (3) may
be included in this zone.
(5) Notwithstanding any other provision of this act, property
located in the alternative energy zone that is classified as
commercial real property under section 34c of the general property
tax act, 1893 PA 206, MCL 211.34c, and that the authority, with the
concurrence of the assessor of the local tax collecting unit,
determines is not used to directly promote and increase the
research, development, testing, and manufacturing of alternative
energy technology, alternative energy systems, and alternative
energy vehicles as those terms are defined in the Michigan next
energy authority act, 2002 PA 593, MCL 207.821 to 207.827, is not
eligible for any exemption, deduction, or credit under section 9.
(6) As used in this section:
(a) "Pharmaceutical recovery renaissance zone" means a
renaissance zone that includes a geographic area that is located in
1 or both of the following:
(i) In a city with a population of more than 70,000 and less
than 85,000 and in a county with a population of more than 235,000
and less than 250,000.
(ii) In a city with a population of more than 42,000 and less
than 55,000 and in a county with a population of more than 235,000
and less than 250,000.
(b) "Redevelopment renaissance zone" means a renaissance zone
that meets 1 of the following:
(i) All of the following:
(A) Is located in a city with a population of more than 7,500
and less than 8,500 and is located in a county with a population of
more than 60,000 and less than 70,000.
(B) Contains only all or a portion of an industrial site of
200 or more acres.
(ii) All of the following:
(A) Is located in a city with a population of more than 13,000
and less than 14,000 and is located in a county with a population
of more than 1,000,000 and less than 1,300,000.
(B) Contains only all or a portion of an industrial site of
300 or more contiguous acres.
(iii) All of the following:
(A) Is located in a township with a population of more than
5,500 and is located in a county with a population of less than
24,000.
(B) Contains only all or a portion of an industrial site of
more than 850 acres and has railroad access.
(iv) All of the following:
(A) Is located in a city with a population of more than 40,000
and less than 44,000 and is located in a county with a population
of more than 81,000 and less than 87,000.
(B) Contains only all or a portion of an industrial site of
more than 475 acres.
(v) All of the following:
(A) Is located in a city with a population of more than 21,000
and less than 26,000 and is located in a county with a population
of more than 573,000 and less than 625,000.
(B) Contains only all or a portion of an industrial site of
less than 45 acres in size.
(vi) All of the following:
(A) Is located in a city with a population of more than
190,000 and less than 250,000 and is located in a county with a
population of more than 573,000 and less than 625,000.
(B) Contains only all or a portion of an industrial site of
more than 14 acres and less than 16 acres in size.
(C) Is approved by the board of the Michigan strategic fund on
or before April 1, 2007.
(vii) All of the following:
(A) Is located in a city with a population of more than 35,500
and less than 36,800 and is located in a county with a population
of more than 157,000 and less than 162,000.
(B) Contains only all or a portion of an industrial site
comprised of 1 or more adjacent parcels totaling 5 or more acres.
(C) Is approved by the board of the Michigan strategic fund on
or before April 1, 2007.
(viii) All of the following:
(A) Is located in a city with a population of more than 40,000
and less than 44,000 and is located in a county with a population
of more than 81,000 and less than 87,000.
(B) Contains only all or a portion of an industrial site
composed of 1 or more adjacent parcels totaling 100 or more acres.
(C) Is approved by the board of the Michigan strategic fund on
or before April 1, 2008.
Sec. 8h. (1) The board of the Michigan strategic fund
described in section 4 of the Michigan strategic fund act, 1984 PA
270, MCL 125.2004, upon the application of a next Michigan
development corporation, may designate next Michigan renaissance
zones for eligible next Michigan businesses within the boundaries
of a next Michigan development district. The number of next
Michigan renaissance zones to be designated for a next Michigan
development district that does not include an eligible urban entity
as defined in the next Michigan development act shall equal the
cumulative number of initial or subsequent local governmental unit
parties to the next Michigan development corporation interlocal
agreement, plus 1 additional next Michigan renaissance zone for
each county party to the interlocal agreement, but shall not exceed
12 for each next Michigan development district. The number of next
Michigan renaissance zones to be designated for a next Michigan
development district that includes an eligible urban entity as
defined in the next Michigan development act shall not exceed 12 as
determined by the president of the Michigan strategic fund. The
number shall not be reduced on account of a reduction in the number
of local government unit parties to the interlocal agreement from
time to time. The next Michigan development corporation shall make
recommendations to the board of the Michigan strategic fund as to
which areas shall be designated as next Michigan renaissance zones
for eligible next Michigan businesses under this act. The aggregate
territory of all next Michigan renaissance zones designated for a
next Michigan development corporation shall not exceed the lesser
of 200 acres times the number of next Michigan renaissance zones
designated for a next Michigan development corporation or 1,675
acres. A next Michigan renaissance zone shall have a duration of
renaissance zone status for a period of not less than 5 years and
not more than 10 years as determined by the board of the Michigan
strategic fund. Except as otherwise provided in this act, if the
board of the Michigan strategic fund determines that the duration
of renaissance zone status for a next Michigan renaissance zone is
less than 10 years, then the board of the Michigan strategic fund,
with the consent of the next Michigan development corporation and
with the consent of the city, village, or township in which the
next Michigan renaissance zone is located, may extend the duration
of renaissance zone status for the next Michigan renaissance zone
for 1 or more periods that when combined do not exceed 10 years.
(2) The next Michigan development corporation shall make
recommendations to the board of the Michigan strategic fund to
certify an eligible next Michigan business as a qualified eligible
next Michigan business entitled to the exemptions, deductions, or
credits as provided in section 9. Upon the recommendation of a next
Michigan development corporation and subject to subsection (10),
the board of the Michigan strategic fund may determine whether an
eligible next Michigan business should receive the benefits of a
renaissance zone and certify that eligible next Michigan business
as a qualified eligible next Michigan business under this act and
subject to a written agreement as provided in subsection (8). The
board of the Michigan strategic fund shall establish a standard
process to evaluate applications for certification as a qualified
eligible next Michigan business and shall appoint a committee to
review the applications. The standard application process developed
by the board of the Michigan strategic fund shall be approved by a
resolution of the board of the Michigan strategic fund before an
eligible next Michigan business is certified as a qualified
eligible next Michigan business. The board of the Michigan
strategic fund shall certify or deny the application to certify an
eligible next Michigan business as a qualified eligible next
Michigan business within 49 days of receipt of the application that
is complete in all material respects as determined by the president
of the Michigan strategic fund. If the board of the Michigan
strategic fund fails to certify or deny the application for
certification within 49 days of receipt of the application that is
complete in all material respects as determined by the president of
the Michigan strategic fund, the application for certification is
considered approved. If the board of the Michigan strategic fund
denies the application for certification, the applicant may appeal
that denial to the board of the Michigan strategic fund for
reconsideration. The president of the Michigan strategic fund shall
notify the next Michigan development corporation that the Michigan
strategic fund has certified a qualified eligible next Michigan
business in a next Michigan development district. The next Michigan
development corporation shall develop an application process for
eligible next Michigan businesses, which process shall be approved
by the board of the Michigan strategic fund. A next Michigan
development corporation shall not use the incentives provided in
this act primarily to recruit an eligible next Michigan business to
relocate from a location in this state to another location in this
state. A next Michigan development corporation shall not recommend
and the board of the Michigan strategic fund shall not certify an
eligible next Michigan business as a qualified eligible next
Michigan business unless that eligible next Michigan business opens
a new location in this state, locates in this state, or is an
existing business located in this state that will materially expand
its business in this state as determined by the board of the
Michigan strategic fund. However, the board of the Michigan
strategic fund shall not certify an eligible next Michigan business
as a qualified eligible next Michigan business if the principal
economic effect of the expansion or location of the eligible next
Michigan business into a next Michigan development district is the
transfer of employment from 1 or more cities, villages, or
townships in this state to the next Michigan development district
and each order or resolution certifying an eligible next Michigan
business as a qualified eligible next Michigan business shall
contain an express finding, based upon competent and material
evidence in the record, of compliance with the requirements of this
subsection. Any transfer of employment from 1 or more cities,
villages, and townships in this state to a next Michigan
development district resulting from the expansion or location of an
eligible next Michigan business into a next Michigan development
district in which the aggregate number of transferred full-time
employees is less than 15% of the total number of full-time
employees proposed to be located in the next Michigan development
district by the eligible next Michigan business shall be
conclusively presumed to not be a principal economic effect of the
expansion or location. In the event that a transfer of employment
will occur resulting from the expansion or location of an eligible
next Michigan business into a next Michigan development district,
the board of the Michigan strategic fund shall provide written
notice of the order or resolution certifying the eligible next
Michigan business as a qualifying next Michigan business to the
chief executive officer of each county, city, village, and township
from which the transfer of employment will occur within 10 days of
the order or resolution certifying the qualified eligible next
Michigan business. The chief executive officer of each county,
city, village, and township notified under this subsection shall
have 30 days to file an appeal of the certification with the board
of the Michigan strategic fund. The board of the Michigan strategic
fund shall decide the appeal within 45 days of the receipt of the
appeal. The board of the Michigan strategic fund shall not certify
an eligible next Michigan business as a qualified eligible next
Michigan business if the business applicant has been convicted of a
felony and the board of the Michigan strategic fund has determined
that the conviction will have a material impact on the business
applicant's ability to fulfill its obligations under this act. As
used in this subsection, the business applicant includes the
business entity, affiliates, subsidiaries, officers, directors,
managerial employees, and any person who, directly or indirectly,
holds a pecuniary interest in that business entity of 20% or more.
(3) Upon request of the next Michigan development corporation,
the board of the Michigan strategic fund may modify an existing
next Michigan renaissance zone to add additional property under the
same terms and conditions as the existing next Michigan renaissance
zone if all of the following are met:
(a) The additional real property is located within the
boundaries of the next Michigan development district and will be
owned or operated by a qualified eligible next Michigan business
once it is brought into operation as determined by the board of the
Michigan strategic fund.
(b) The next Michigan development corporation and the city,
village, or township in which the qualified eligible next Michigan
business is located consent to the modification.
(c) The aggregate territory limitations provided in subsection
(1) will not be exceeded.
(4) A qualified eligible next Michigan business in a next
Michigan renaissance zone shall be granted the benefits of
renaissance zone status for a period of up to 15 years.
(5) The board of the Michigan strategic fund may revoke the
designation of all or a portion of a next Michigan renaissance zone
or the certification of a qualified eligible next Michigan business
if the board of the Michigan strategic fund determines 1 or more of
the following:
(a) The qualified eligible next Michigan business proposed in
the application fails, or a preponderance of businesses proposed in
the application fail, to commence operation within 2 years from the
date of the certification as a qualified eligible next Michigan
business.
(b) The qualified eligible next Michigan business proposed in
the application to commence operation within the next Michigan
renaissance zone ceases operation, provided that designation shall
not be revoked if the qualified eligible next Michigan business has
assigned its rights to a successor entity engaged in a qualified
eligible next Michigan business.
(c) The qualified eligible next Michigan business proposed in
the application to commence operation within the next Michigan
renaissance zone fails to commence construction or renovation
within 1 year from the date of the certification as a qualified
eligible next Michigan business.
(d) The qualified eligible next Michigan business fails to
meet jobs and investment criteria set forth in the application and
approved as a condition by the president or the board of the
Michigan strategic fund.
(e) The local governmental unit in which the qualified
eligible next Michigan business is located withdraws from the next
Michigan development corporation interlocal agreement, provided
that the tax incentives previously granted to the qualified
eligible next Michigan business shall remain in full force and
effect for the stated term of the tax incentives so long as the
qualified eligible next Michigan business satisfies all of the
conditions upon which the tax incentives were granted.
(6) If the designation of all or a portion of a next Michigan
renaissance zone or the certification of a qualified eligible next
Michigan business is revoked, a qualified eligible next Michigan
business affected may appeal that revocation to the board of the
Michigan strategic fund. The designation may subsequently be
restored by the board of the Michigan strategic fund to the same
site and in respect of a qualified eligible next Michigan business,
but the duration of the restored designation shall not exceed the
term of the original designation.
(7) Upon request of the next Michigan development corporation,
the board of the Michigan strategic fund may extend the duration of
renaissance zone status for 1 or more portions of a next Michigan
renaissance zone if the extension will increase capital investment
or job creation, and the next Michigan development corporation and
the city, village, or township in which that portion of the next
Michigan renaissance zone is located consents to extend the
duration of renaissance zone status. The board of the Michigan
strategic fund may extend renaissance zone status for 1 or more
portions of the next Michigan renaissance zone under this
subsection for a period of time not to exceed 5 additional years as
determined by the board of the Michigan strategic fund.
(8) Before an eligible next Michigan business is certified as
a qualified eligible next Michigan business, the board of the
Michigan strategic fund shall enter into a written agreement with
the next Michigan development corporation and a qualified eligible
next Michigan business in respect of the terms and conditions of
granting and retaining renaissance zone status, certification as a
qualified eligible next Michigan business, and any other related
matters. The written agreement also shall contain a remedy
provision that includes, but is not limited to, all of the
following:
(a) A requirement that all or a portion of the exemptions,
deductions, or credits described in section 9 shall be revoked
under the procedures set forth in this act if the qualified
eligible next Michigan business is determined to be in violation of
the provisions of this act or the written agreement or relocates
outside the next Michigan development district for a period of
years after renaissance zone status expires as set forth in the
written agreement.
(b) A requirement that the qualified eligible next Michigan
business may be required to repay all or a portion of the
exemptions, deductions, or credits described in section 9 if the
qualified eligible next Michigan business is determined to be in
violation of the provisions of this act or the written agreement or
relocates outside the next Michigan development district for a
period of years after renaissance zone status expires as set forth
in the written agreement.
(9) Except as otherwise provided in this subsection, the
commencement of renaissance zone status under this section shall
take effect on January 1 in the year following designation.
However, for purposes of the taxes exempted under section 9(2), the
commencement of renaissance zone status under this section shall
take effect on December 31 in the year immediately preceding the
year in which the commencement under this section takes effect.
(10) The board of the Michigan strategic fund shall not
certify more than 25 eligible businesses as qualified eligible next
Michigan businesses under this act. The board of the Michigan
strategic fund shall not certify more than 10 eligible businesses
as qualified eligible next Michigan businesses in a next Michigan
development district as defined in the next Michigan development
act.
Sec. 10. (1) An individual who is a resident of a renaissance
zone or a business that is located and conducts business activity
within a renaissance zone or a person that owns property located in
a renaissance zone is not eligible for the exemption, deduction, or
credit listed in section 9(1) or (2) for that taxable year if 1 or
more of the following apply:
(a) The resident, business, or property owner is delinquent on
December 31 of the prior tax year under 1 or more of the following:
(i) Former 1975 PA 228 or the Michigan business tax act, 2007
PA 36, MCL 208.1101 to 208.1601.
(ii) The income tax act of 1967, 1967 PA 281, MCL 206.1 to
206.532.
(iii) 1974 PA 198, MCL 207.551 to 207.572.
(iv) The commercial redevelopment act, 1978 PA 255, MCL 207.651
to 207.668.
(v) The enterprise zone act, 1985 PA 224, MCL 125.2101 to
125.2123.
(vi) 1953 PA 189, MCL 211.181 to 211.182.
(vii) The technology park development act, 1984 PA 385, MCL
207.701 to 207.718.
(viii) Part 511 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.51101 to 324.51120.
(ix) The neighborhood enterprise zone act, 1992 PA 147, MCL
207.771 to 207.786.
(x) The city utility users tax act, 1990 PA 100, MCL 141.1151
to 141.1177.
(b) The resident, business, or property owner is substantially
delinquent as defined in a written policy by the qualified local
governmental unit in which the renaissance zone is located on
December 31 of the prior tax year under 1 or both of the following:
(i) The city income tax act, 1964 PA 284, MCL 141.501 to
141.787.
(ii) Taxes, fees, and special assessments collected under the
general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(c) For residential rental property in a renaissance zone, the
residential rental property is not in substantial compliance with
all applicable state and local zoning, building, and housing laws,
ordinances, or codes and, except as otherwise provided in this
subdivision, the residential rental property owner has not filed an
affidavit before December 31 in the immediately preceding tax year
with the local tax collecting unit in which the residential rental
property is located as required under section 7ff of the general
property tax act, 1893 PA 206, MCL 211.7ff. Beginning December 31,
2004, a residential rental property owner is not required to file
an affidavit if the qualified local governmental unit in which the
residential rental property is located determines that the
residential rental property is in substantial compliance with all
applicable state and local zoning, building, and housing laws,
ordinances, and codes on December 31 of the immediately preceding
tax year.
(2) An individual who is a resident of a renaissance zone is
eligible for an exemption, deduction, or credit under section 9(1)
and (2) until the department of treasury determines that the
aggregate state and local tax revenue forgone as a result of all
exemptions, deductions, or credits granted under this act to that
individual reaches $10,000,000.00.
(3) A casino located and conducting business activity within a
renaissance zone is not eligible for the exemption, deduction, or
credit listed in section 9(1) or (2). Real property in a
renaissance zone on which a casino is operated, personal property
of a casino located in a renaissance zone, and all property
associated or affiliated with the operation of a casino is not
eligible for the exemption, deduction, or credit listed in section
9(1) or (2). As used in this subsection, "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, 1996
IL 1, MCL 432.201 to 432.226.
(4) For tax years beginning on or after January 1, 1997, an
individual who is a resident of a renaissance zone shall not be
denied the exemption under subsection (1) if the individual failed
to file a return on or before December 31 of the prior tax year
under subsection (1)(a)(ii) and that individual was entitled to a
refund under that act.
(5) A business that is located and conducts business activity
within a renaissance zone shall not be denied the exemption under
subsection (1) if the business failed to file a return on or before
December 31 of the prior tax year under subsection (1)(a)(i) and
that business had no tax liability under that act for the tax year
for which the return was not filed.
(6) In a next Michigan renaissance zone, only property owned
or leased by a qualified eligible next Michigan business and
business activity conducted in a next Michigan renaissance zone by
a qualified eligible next Michigan business are eligible for the
exemptions, deductions, or credits described in section 9.