Bill Text: MI SB0759 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Economic development; obsolete property and rehabilitation; definition of blighted property; revise, and extend exemption deadline sunset to 2013. Amends secs. 2 & 16 of 2000 PA 146 (MCL 125.2782 & 125.2796).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2009-08-19 - Referred To Committee On Economic Development And Regulatory Reform [SB0759 Detail]
Download: Michigan-2009-SB0759-Introduced.html
SENATE BILL No. 759
August 19, 2009, Introduced by Senator ALLEN and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 2000 PA 146, entitled
"Obsolete property rehabilitation act,"
by amending sections 2 and 16 (MCL 125.2782 and 125.2796), section
2 as amended by 2006 PA 70.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Blighted" means property that meets any of the following
criteria as determined by the qualified local governmental unit.
(i) Has been declared a public nuisance in accordance with a
local housing, building, plumping, fire, or other related code or
ordinance.
(ii) Is an attractive nuisance to children because of physical
condition, use, or occupancy.
(iii) Is a fire hazard or is otherwise dangerous to the safety
of persons or property.
(iv) Has had the utilities, plumbing, heating, or sewerage
permanently disconnected, destroyed, removed, or rendered
ineffective so that the property is unfit for its intended use.
(v) Is tax reverted property owned by a qualified local
government unit, by a county, or by this state. The sale, lease, or
transfer of tax reverted property by a qualified local government
unit, county, or this state after the property's inclusion in a
brownfield plan as defined in section 2 of the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2652, shall not
result in the loss to the property of the status as blighted for
purposes of this act.
(vi) Is property owned or under the control of a land bank fast
track authority under the land bank fast track act, 2003 PA 258,
MCL 124.751 to 124.774, whether or not located within a qualified
local governmental unit. The sale, lease, or transfer of the
property by a land bank fast track authority under the land bank
fast track act, 2003 PA 258, MCL 124.751 to 124.774, after the
property's inclusion in a brownfield plan as defined in section 2
of the brownfield redevelopment financing act, 1996 PA 381, MCL
125.2652, shall not result in the loss to the property of the
status as blighted for purposes of this act.
(b)
(a) "Commercial housing property" means that
portion of
real property not occupied by an owner of that real property that
is classified as residential real property under section 34c of the
general property tax act, 1893 PA 206, MCL 211.34c, is a multiple-
unit dwelling, or is a dwelling unit in a multiple-purpose
structure, used for residential purposes. Commercial housing
property also includes a building or group of contiguous buildings
previously used for industrial purposes that will be converted to a
multiple-unit dwelling or dwelling unit in a multiple-purpose
structure, used for residential purposes.
(c) (b)
"Commercial property"
means land improvements
classified by law for general ad valorem tax purposes as real
property including buildings and improvements assessable as real
property pursuant to sections 8(d) and 14(6) of the general
property tax act, 1893 PA 206, MCL 211.8 and 211.14, the primary
purpose and use of which is the operation of a commercial business
enterprise. Commercial property shall also include facilities
related to a commercial business enterprise under the same
ownership at that location, including, but not limited to, office,
engineering, research and development, warehousing, parts
distribution, retail sales, and other commercial activities.
Commercial property also includes a building or group of contiguous
buildings previously used for industrial purposes that will be
converted to the operation of a commercial business enterprise or a
multiple-unit dwelling or a dwelling unit in a multiple-purpose
structure, used for residential purposes. Commercial property does
not include any of the following:
(i) Land.
(ii) Property of a public utility.
(d) (c)
"Commission" means the
state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(e) (d)
"Department" means the department
of treasury.
(f) (e)
"Facility", except as
otherwise provided in this act,
means a building or group of contiguous buildings.
(g) (f)
"Functionally obsolete"
means that term as defined in
section 2 of the brownfield redevelopment financing act, 1996 PA
381, MCL 125.2652.
(h) (g)
"Obsolete properties tax"
means the specific tax
levied under this act.
(i) (h)
"Obsolete property" means
commercial property or
commercial housing property, that is 1 or more of the following:
(i) Blighted.
, as that term is defined in section
2 of the
brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2652.
(ii) A facility as that term is defined under section 20101 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.20101.
(iii) Functionally obsolete.
(j) (i)
"Obsolete property
rehabilitation district" means an
area of a qualified local governmental unit established as provided
in section 3. Only those properties within the district meeting the
definition of "obsolete property" are eligible for an exemption
certificate issued pursuant to section 6.
(k) (j)
"Obsolete property
rehabilitation exemption
certificate" or "certificate" means the certificate issued pursuant
to section 6.
(l) (k)
"Qualified local governmental
unit" means 1 or more of
the following:
(i) A city with a median family income of 150% or less of the
statewide median family income as reported in the 1990 federal
decennial census that meets 1 or more of the following criteria:
(A) Contains or has within its borders an eligible distressed
area as that term is defined in section 11(u)(ii) and (iii) of the
state housing development authority act of 1966, 1966 PA 346, MCL
125.1411.
(B) Is contiguous to a city with a population of 500,000 or
more.
(C) Has a population of 10,000 or more that is located outside
of an urbanized area as delineated by the United States bureau of
the census.
(D) Is the central city of a metropolitan area designated by
the United States office of management and budget.
(E) Has a population of 100,000 or more that is located in a
county with a population of 2,000,000 or more according to the 1990
federal decennial census.
(ii) A township with a median family income of 150% or less of
the statewide median family income as reported in the 1990 federal
decennial census that meets 1 or more of the following criteria:
(A) Is contiguous to a city with a population of 500,000 or
more.
(B) All of the following:
(I) Contains or has within its borders an eligible distressed
area as that term is defined in section 11(u)(ii) of the state
housing development authority act of 1966, 1966 PA 346, MCL
125.1411.
(II) Has a population of 10,000 or more.
(iii) A village with a population of 500 or more as reported in
the 1990 federal decennial census located in an area designated as
a rural enterprise community before 1998 under title XIII of the
omnibus
budget reconciliation act of 1993, Public Law 103-66. ,
107
Stat.
416.
(iv) A city that meets all of the following criteria:
(A) Has a population of more than 20,000 or less than 5,000
and is located in a county with a population of 2,000,000 or more
according to the 1990 federal decennial census.
(B) As of January 1, 2000, has an overall increase in the
state equalized valuation of real and personal property of less
than 65% of the statewide average increase since 1972 as determined
for the designation of eligible distressed areas under section
11(u)(ii)(B) of the state housing development authority act of 1966,
1966 PA 346, MCL 125.1411.
(m) (l) "Rehabilitation"
means changes to obsolete property
other than replacement that are required to restore or modify the
property, together with all appurtenances, to an economically
efficient condition. Rehabilitation includes major renovation and
modification including, but not necessarily limited to, the
improvement of floor loads, correction of deficient or excessive
height, new or improved fixed building equipment, including
heating, ventilation, and lighting, reducing multistory facilities
to 1 or 2 stories, adding additional stories to a facility or
adding additional space on the same floor level not to exceed 100%
of the existing floor space on that floor level, improved
structural support including foundations, improved roof structure
and cover, floor replacement, improved wall placement, improved
exterior and interior appearance of buildings, and other physical
changes required to restore or change the obsolete property to an
economically efficient condition. Rehabilitation shall not include
improvements aggregating less than 10% of the true cash value of
the property at commencement of the rehabilitation of the obsolete
property.
(n) (m)
"Rehabilitated facility"
means a commercial property
or commercial housing property that has undergone rehabilitation or
is in the process of being rehabilitated, including rehabilitation
that changes the intended use of the building. A rehabilitated
facility does not include property that is to be used as a
professional sports stadium. A rehabilitated facility does not
include property that is to be used as a casino. As used in this
subdivision, "casino" means a casino or a parking lot, hotel,
motel, or retail store owned or operated by a casino, an affiliate,
or an affiliated company, regulated by this state pursuant to the
Michigan gaming control and revenue act, the Initiated Law of 1996,
MCL 432.201 to 432.226.
(o) (n)
"Taxable value" means the
value determined under
section 27a of the general property tax act, 1893 PA 206, MCL
211.27a.
Sec. 16. A new exemption shall not be granted under this act
after
December 31, 2010 2013, but an exemption then in effect shall
continue until the expiration of the exemption certificate.
