Bill Text: MI HB4986 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Economic development; neighborhood enterprise zones; eligibility; revise for certain residents. Amends sec. 4 of 1992 PA 147 (MCL 207.774).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-08-11 - Assigned Pa 136'10 With Immediate Effect [HB4986 Detail]
Download: Michigan-2009-HB4986-Engrossed.html
HB-4986, As Passed House, March 10, 2010
SUBSTITUTE FOR
HOUSE BILL NO. 4986
A bill to amend 1992 PA 147, entitled
"Neighborhood enterprise zone act,"
by amending sections 4 and 9 (MCL 207.774 and 207.779), section 4
as amended by 2009 PA 16 and section 9 as amended by 2005 PA 340.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) The owner of a homestead facility or owner or
developer or prospective owner or developer of a proposed new
facility or an owner or developer or prospective developer
proposing to rehabilitate property located in a neighborhood
enterprise zone may file an application for a neighborhood
enterprise zone certificate with the clerk of the local
governmental unit. The application shall be filed in the manner and
form prescribed by the commission. The clerk of the local
governmental unit shall provide a copy of each homestead facility
application to the assessor for the local governmental unit. Except
as provided in subsection (2) or as otherwise provided by the local
governmental unit by resolution if the application is filed not
later than 6 months following the date the building permit is
issued, the application shall be filed before a building permit is
issued for the new construction or rehabilitation of the facility.
(2) An application may be filed after a building permit is
issued only if 1 or more of the following apply:
(a) For the rehabilitation of a facility if the area in which
the facility is located is designated as a neighborhood enterprise
zone by the governing body of the local governmental unit in the
calendar year 1992 and if the building permit is issued for the
rehabilitation before December 31, 1994 and after the date on which
the area in which the facility is located was designated as a
neighborhood enterprise zone by the governing body of the local
governmental unit.
(b) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in calendar year 1992 or 1993 and if the building permit is
issued for that new facility before December 31, 1995 and after
January 1, 1993.
(c) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in July 1997 and if the building permit is issued for that new
facility on February 3, 1998.
(d) For a new facility or a rehabilitated facility if the area
in which the new facility or rehabilitated facility is located was
designated as a neighborhood enterprise zone by the governing body
of the local governmental unit in July 1996 and if the building
permit was issued for that facility on or before July 3, 2001.
(e) For a new facility or a rehabilitated facility if the area
in which the new facility or rehabilitated facility is located was
designated as a neighborhood enterprise zone by the governing body
of the local governmental unit in October 1994 and if the building
permit was issued for that facility on or before April 25, 1997.
(f) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in September 2001 and if the building permit is issued for
that new facility on March 3, 2003.
(g) For a rehabilitated facility if all or a portion of the
rehabilitated facility is a qualified historic building.
(h) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in July 1993 and the new facility was a model home.
(i) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in August 2004 and if building permits were issued for that
facility beginning November 5, 2002 through December 23, 2003.
(j) For a homestead facility.
(k) For the construction of a facility if the area in which
the facility is located was designated as a neighborhood enterprise
zone by the governing body of the local governmental unit in July
2003, and if the building permit was issued for that facility in
June 2004.
(l) For a new facility or a rehabilitated facility if the area
in which the new facility or rehabilitated facility is located was
designated as a neighborhood zone by the governing body of the
local governmental unit in February 2004 and if the building permit
for that facility was issued in August 2003 or January 2005.
(m) For the construction of a facility if the area in which
the facility is located was designated as a neighborhood enterprise
zone by the governing body of the local governmental unit in June
2007 and if the building permit was issued for that facility after
November 30, 2004 and before November 1, 2006.
(n) For the construction of a facility if the area in which
the facility is located was designated as a neighborhood enterprise
zone by the governing body of the local governmental unit on July
1, 2005 and if the building permit was issued for that facility
after April 5, 2006 and before May 1, 2007.
(o) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in May 1996 and if the building permit was issued for that
facility after December 24, 2004 and before January 22, 2005.
(p) For the construction of a new facility if the area in
which the new facility is located is designated as a neighborhood
enterprise zone by the governing body of the local governmental
unit in April 2003 and if the building permit was issued for that
facility in April 2008 or September 2008.
(3) The application shall contain or be accompanied by all of
the following:
(a) A general description of the homestead facility, new
facility, or proposed rehabilitated facility.
(b) The dimensions of the parcel on which the homestead
facility, new facility, or proposed rehabilitated facility is or is
to be located.
(c) The general nature and extent of the construction to be
undertaken.
(d) A time schedule for undertaking and completing the
rehabilitation of property or the construction of the new facility.
(e) A statement by the owner of a homestead facility that the
owner is committed to investing a minimum of $500.00 in the first 3
years that the certificate for a homestead facility is in effect
and committed to documenting the minimum investment if required to
do so by the assessor of the local governmental unit.
(f) Any other information required by the local governmental
unit.
(4) Notwithstanding any other provisions of this act, for any
certificate issued as a result of the enactment of the amendatory
act that added subsection (2)(c), the effective date of the
certificate shall be the first day of the tax year following the
year the certificate is approved by the commission.
(5) Notwithstanding any other provisions of this act, for any
certificate issued as a result of the enactment of the amendatory
act that added subsection (2)(d) or the amendatory act that added
subsection (2)(e), the effective date of the certificate shall be
January 1, 2001.
(6) Notwithstanding any other provisions of this act, for any
certificate issued as a result of the enactment of the amendatory
act that added subsection (2)(j) or the amendatory act that added
subsection (2)(k), the effective date of the certificate shall be
the first day of the tax year following the year the certificate is
approved by the qualified assessing authority.
(7) For a certificate issued as a result of the amendatory act
that added subsection (2)(e), both of the following shall apply not
withstanding any other provision of this act:
(a) The effective date of the certificate shall be January 1,
2001 and the taxable value for rehabilitated facilities shall be
set as provided in section 10(3).
(b) For certificates issued or reissued after December 31,
2005, 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, as of December 31 of the year prior to the start of the
improvement as described in subsection (3) by the total mills
collected under the general property tax act, 1893 PA 206, MCL
211.1 to 211.155, for the current year by all taxing units within
which the rehabilitated facility is located.
(8) For any certificate issued as result of the amendatory act
that added subsection (2)(l), notwithstanding any other provision of
this act 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, as of December 31 of the year prior to the start of the
improvement as described in subsection (3) by the total mills
collected under the general property tax act, 1893 PA 206, MCL
211.1 to 211.155, for the current year by all taxing units within
which the rehabilitated facility is located.
(9) If a new facility is completed in a neighborhood
enterprise zone approved in October 1996 and a building permit was
issued in March 1998 but a neighborhood enterprise zone certificate
was not applied for by the original owner occupying the facility as
a principal residence, a subsequent owner occupying the new
facility as a principal residence can request and, notwithstanding
any other provision of this act, effective December 31 of the year
preceding the application, be granted a neighborhood enterprise
zone certificate for the remainder of the term, not to exceed 12
years, that a neighborhood enterprise zone certificate would have
been in effect for the original owner of the new facility.
Sec. 9. (1) Except as provided in subsection (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
211.155.
(3) 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.
(c) For property described in section 4(2)(p) 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, excluding the rate of taxation levied for school operating
purposes, plus the rate of taxation levied for school operating
purposes. As used in this subdivision, "taxation levied for school
operating purposes" means taxes levied under the following:
(i) The state education tax act, 1993 PA 331, MCL 211.901 to
211.906.
(ii) Section 1211 of the revised school code, 1976 PA 451, MCL
380.1211.
(4) 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
211.155, 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 211.157 211.155,
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, 2005, 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 211.157 211.155,
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, 2005, 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 211.157 211.155,
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, 2005, 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 211.157 211.155,
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) 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 211.157 211.155,
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 211.157 211.155. To determine the
proportion for the disbursement of taxes under this subsection and
for attribution of taxes under subsection (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) 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) 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) 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
211.155.
(13) 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 211.157 211.155.
(14) 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.
