Bill Text: MI HB5789 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Economic development; plant rehabilitation; recapture of abated taxes; provide for. Amends sec. 4 of 1974 PA 198 (MCL 207.554).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-10 - Printed Bill Filed 02/10/2010 [HB5789 Detail]
Download: Michigan-2009-HB5789-Introduced.html
HOUSE BILL No. 5789
February 9, 2010, Introduced by Rep. Slezak and referred to the Committee on Tax Policy.
A bill to amend 1974 PA 198, entitled
"An act to provide for the establishment of plant rehabilitation
districts and industrial development districts in local
governmental units; to provide for the exemption from certain
taxes; to levy and collect a specific tax upon the owners of
certain facilities; to impose and provide for the disposition of an
administrative fee; to provide for the disposition of the tax; to
provide for the obtaining and transferring of an exemption
certificate and to prescribe the contents of those certificates; to
prescribe the powers and duties of the state tax commission and
certain officers of local governmental units; and to provide
penalties,"
by amending section 4 (MCL 207.554), as amended by 2004 PA 437.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) A local governmental unit, by resolution of its
legislative body, may establish plant rehabilitation districts and
industrial development districts that consist of 1 or more parcels
or tracts of land or a portion of a parcel or tract of land.
(2) The legislative body of a local governmental unit may
establish a plant rehabilitation district or an industrial
development district on its own initiative or upon a written
request filed by the owner or owners of 75% of the state equalized
value of the industrial property located within a proposed plant
rehabilitation district or industrial development district. This
request shall be filed with the clerk of the local governmental
unit.
(3) Except as provided in section 9(2)(h), after December 31,
1983, a request for the establishment of a proposed plant
rehabilitation district or industrial development district shall be
filed only in connection with a proposed replacement facility or
new facility, the construction, acquisition, alteration, or
installation of or for which has not commenced at the time of the
filing of the request. The legislative body of a local governmental
unit shall not establish a plant rehabilitation district or an
industrial development district pursuant to subsection (2) if it
finds that the request for the district was filed after the
commencement of construction, alteration, or installation of, or of
an acquisition related to, the proposed replacement facility or new
facility. This subsection shall not apply to a speculative
building.
(4) Before adopting a resolution establishing a plant
rehabilitation district or industrial development district, the
legislative body shall give written notice by certified mail to the
owners of all real property within the proposed plant
rehabilitation district or industrial development district and
shall hold a public hearing on the establishment of the plant
rehabilitation district or industrial development district at which
those owners and other residents or taxpayers of the local
governmental unit shall have a right to appear and be heard.
(5) The legislative body of the local governmental unit, in
its resolution establishing a plant rehabilitation district, shall
set forth a finding and determination that property comprising not
less than 50% of the state equalized valuation of the industrial
property within the district is obsolete.
(6) A plant rehabilitation district or industrial development
district established by a township shall be only within the
unincorporated territory of the township and shall not be within a
village.
(7) Industrial property that is part of an industrial
development district or a plant rehabilitation district may also be
part of a tax increment district established under the tax
increment finance authority act, 1980 PA 450, MCL 125.1801 to
125.1830.
(8) A local governmental unit, by resolution of its
legislative body, may terminate a plant rehabilitation district or
an industrial development district, if there are no industrial
facilities exemption certificates in effect in the plant
rehabilitation district or the industrial development district on
the date of the resolution to terminate.
(9) Before acting on a proposed resolution terminating a plant
rehabilitation district or an industrial development district, the
local governmental unit shall give at least 14 days' written notice
by certified mail to the owners of all real property within the
plant rehabilitation district or industrial development district as
determined by the tax records in the office of the assessor or the
treasurer of the local tax collecting unit in which the property is
located and shall hold a public hearing on the termination of the
plant rehabilitation district or industrial development district at
which those owners and other residents or taxpayers of the local
governmental unit, or others, shall have a right to appear and be
heard.
(10) Industrial facilities exemption certificates that take
effect on or after October 1, 2010 shall include written provisions
that provide that if the owner or lessee of the facility to whom
the certificate is issued relocates the facility outside of this
state during the period in which the certificate is in effect, then
both of the following apply:
(a) That owner or lessee is responsible for the payment of a
penalty described in this subsection. The penalty is equal to the
difference between the industrial facilities tax paid under this
act and the general ad valorem tax that would have been levied if
the certificate had not been granted for each year the certificate
was in effect.
(b) That the owner or lessee consents to the jurisdiction of
the courts of this state for the collection and enforcement of a
penalty described in this subsection.
