September 10, 2009, Introduced by Reps. Walsh, Constan, Polidori, Kandrevas, Leland, Byrnes, Johnson, Geiss, Jackson, Bledsoe, LeBlanc and Angerer and referred to the Committee on Transportation.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending sections 3 and 10 (MCL 125.2683 and 125.2690), section
3 as amended by 2008 PA 217 and section 10 as amended by 2008 PA
242, and by adding section 8g.
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) "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.
(d) "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.
(e) "Eligible business" means that term as defined in section
3 of the Michigan economic growth authority act, 1995 PA 24, MCL
207.803.
(f) (e)
"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.
(g) (f)
"Local governmental unit"
means a county, city,
village, or township.
(h) "Next Michigan development corporation" means that term as
defined in section 3 of the next Michigan development act.
(i) "Next Michigan development district" means that term as
defined in section 3 of the next Michigan development act.
(j) "Next Michigan renaissance zone" means a renaissance zone
created under section 8g of this act.
(k) (g)
"Person" means an
individual, partnership,
corporation, association, limited liability company, governmental
entity, or other legal entity.
(l) "Qualified eligible business" means an eligible business
which has been certified in accordance with section 8g of this act.
(m) (h)
"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.
(n) (i)
"Recovery zone" means a
tool and die renaissance
recovery zone created in section 8d.
(o) (j)
"Renaissance zone" means
a geographic area designated
under this act.
(p) (k)
"Renewable energy
facility" means a facility that
creates energy directly or fuel 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 or fuels 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 or fuel from the items described in this
subdivision.
(q) (l) "Residential
rental property" means that term as
defined in section 7ff of the general property tax act, 1893 PA
206, MCL 211.7ff.
(r) (m)
"Review board" means the
renaissance zone review board
created in section 5.
(s) (n)
"Rural area" means an
area that lies outside of the
boundaries of an urban area.
(t) (o)
"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. 8g. (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 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 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 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
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 2,000 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 president 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 president of the Michigan strategic fund to
certify an eligible business as a qualified eligible business
entitled to the exemptions, deductions, or credits as provided in
section 9 of this act. Upon the recommendation of a next Michigan
development corporation, the president of the Michigan strategic
fund may certify an eligible business as a qualified eligible
business under this act. The president of the Michigan strategic
fund shall certify or deny the application to certify an eligible
business as a qualified eligible business within 30 days of receipt
of the application. If the president of the Michigan strategic fund
fails to certify or deny the application for certification within
30 days of receipt of the application, the application for
certification is considered approved. If the president of the
Michigan strategic fund denies the application for certification
within 30 days of receipt of the application, the applicant may
appeal that denial to the board of the Michigan strategic fund.
Upon appeal to the board of the Michigan strategic fund, if the
board of the Michigan strategic fund fails to certify or deny the
application for certification within 40 days of receipt of the
appeal, the application for certification is considered granted by
the board. The president of the Michigan strategic fund or the
board of the Michigan strategic fund shall notify the next Michigan
development corporation that it has certified a qualified eligible
business in a next Michigan development district. The next Michigan
development corporation shall develop an application process for
eligible businesses, which process shall be approved by the
president of the Michigan strategic fund. A next Michigan
development corporation shall not recommend and the president and
the board of the Michigan strategic fund shall not certify an
eligible business as a qualified eligible business unless that
eligible 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 president of the Michigan strategic fund. However, the
president and the board of the Michigan strategic fund shall not
certify an eligible business as a qualified eligible business if
the principal economic effect of the expansion or location of the
eligible 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.
(3) Upon request of the next Michigan development corporation,
the president 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 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 business is
located consents to the modification.
(c) The aggregate territory limitations set forth in
subsection (1) will not be exceeded.
(4) A qualified eligible business in a next Michigan
renaissance zone shall be granted renaissance zone status for the
greater of up to 10 years or for the remaining term of the next
Michigan renaissance zone within which the qualified eligible
business is located. A qualified eligible business may have a
different period of renaissance zone status than the next Michigan
renaissance zone in which it is located or than another qualified
eligible business in the same next Michigan renaissance zone.
(5) The next Michigan development corporation or the president
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 business if the next Michigan development
corporation or the president of the Michigan strategic fund
determines 1 or more of the following:
(a) The qualified eligible 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 business.
(b) The qualified eligible business proposed in the
application to commence operation within the next Michigan
renaissance zone ceases operation, or a preponderance of businesses
proposed in the application to commence operation cease operations,
provided that designation shall not be revoked if the qualified
eligible business has assigned its rights to a successor entity
engaged in a qualified eligible business.
(c) The qualified eligible business proposed in the
application to commence operation within the next Michigan
renaissance zone fails, or a preponderance of businesses proposed
in the application to commence operations fail, to commence
construction or renovation within 1 year from the date of the
certification as a qualified eligible business.
(d) The qualified eligible 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 business or businesses is or are located withdraws from
the next Michigan development corporation interlocal agreement,
provided that the tax incentives previously granted to the
qualified eligible business or businesses shall remain in full
force and effect for the stated term of the tax incentives so long
as the qualified eligible business or businesses satisfy all of the
conditions upon which the tax incentives were granted.
(6) If the next Michigan development corporation revokes the
designation of all or a portion of a next Michigan renaissance zone
or the certification of a qualified eligible business, a qualified
eligible business affected may appeal that revocation to the
president of the Michigan strategic fund as determined by the
president of the Michigan strategic fund. If the designation of all
or a portion of a next Michigan renaissance zone or the
certification of a qualified eligible business is revoked, the
designation may subsequently be restored by the president of the
Michigan strategic fund to the same site and in respect of a
qualified eligible business, but the duration of the restored
designation shall not exceed the term of the original designation.
If the designation of a next Michigan renaissance zone is revoked
and not restored, the next Michigan renaissance zone designation
may be transferred by the next Michigan development corporation to
other property within the next Michigan development district. The
duration of such transferred zone shall be for the full term
initially determined for that next Michigan renaissance zone.
(7) Upon request of the next Michigan development corporation,
the president 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
president 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 president of the Michigan
strategic fund.
(8) The president of the Michigan strategic fund and the board
of the Michigan strategic fund may enter into an agreement with the
next Michigan development corporation and a qualified eligible
business in respect of the terms and conditions of granting and
retaining renaissance zone status, certification as a qualified
eligible business, and any other related matters.
(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) of
this act, the designation of renaissance zone status under this
section shall take effect on December 31 in the year of
designation. However, for purposes of the taxes exempted under
section 9(2) of this act, the designation of a renaissance zone
under this section shall take effect on December 31 in the year
immediately preceding the year in which the designation under this
section takes effect. Unless otherwise limited as provided in this
act, each qualified eligible business certified under this act
shall be entitled to renaissance zone status for not less than 10
years.
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 business and business activity
conducted in a next Michigan renaissance zone by a qualified
eligible business are eligible for the exemptions, deductions, or
credits described in section 9.