Bill Text: MI SB1112 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Economic development; commercial redevelopment; tax incentives for buildings that are LEED-certified; provide for. Amends secs. 9, 10, 11 & 12 of 1978 PA 255 (MCL 207.659 et seq.).
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2010-09-23 - Referred To Committee Of The Whole With Substitute S-1 [SB1112 Detail]
Download: Michigan-2009-SB1112-Introduced.html
SENATE BILL No. 1112
February 4, 2010, Introduced by Senators CLARKE, BIRKHOLZ, BARCIA, CROPSEY, PAPPAGEORGE, BASHAM, HUNTER and KUIPERS and referred to the Committee on Commerce and Tourism.
A bill to amend 1978 PA 255, entitled
"Commercial redevelopment act,"
by amending sections 9, 10, 11, and 12 (MCL 207.659, 207.660,
207.661, and 207.662), section 9 as amended by 1993 PA 340 and
section 12 as amended by 2008 PA 227.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9. (1) A facility for which a commercial facilities
exemption certificate is in effect, but not the land on which the
facility is located or to be located, or personal property other
than personal property assessed pursuant to section 14(6) of the
general
property tax act, Act No. 206 of the Public Acts of 1893,
as
amended, being section 211.14 of the Michigan Compiled Laws 1893
PA 206, MCL 211.14, for the period on and after the effective date
of the certificate and continuing so long as the commercial
facilities exemption certificate is in force, is exempt from ad
valorem property taxes. A lessee, occupant, user, or person in
possession of the facility for the same period is exempt from ad
valorem
taxes imposed under Act No. 189 of the Public Acts of 1953,
as
amended, being sections 211.181 to 211.182 of the Michigan
Compiled
Laws 1953 PA 189, MCL
211.181 to 211.182.
(2) Unless earlier revoked as provided in section 15, a
commercial facilities exemption certificate shall remain in force
and effect for a period to be determined by the legislative body of
the local governmental unit. The certificate may be issued for a
period of at least 1 year, but not to exceed 12 years. If the
number of years determined is less than 12, the certificate may be
subject to review by the legislative body of the local governmental
unit and the certificate may be extended. The total amount of time
determined for the certificate including any extensions shall not
exceed 12 years after the completion of the facility. The
certificate shall commence with its effective date and end on the
December 31 next following the last day of the number of years
determined. The date of issuance of a certificate of occupancy, if
required by appropriate authority, shall be the date of completion
of the facility. For a LEED certified facility, the date of
issuance of LEED certification shall be the date of completion of
the facility.
(3) If the number of years determined by the legislative body
of the local governmental unit for the period a certificate remains
in force is less than 12 years, the review of the certificate for
the purpose of determining an extension shall be based upon
factors, criteria and objectives that shall be placed in writing,
approved at the time the certificate is approved by the legislative
body of the local governmental unit and sent to the applicant and
commission.
Sec. 10. (1) If the state equalized valuation of property
proposed to be exempt pursuant to an application under
consideration, considered together with the aggregate state
equalized valuation of property exempt under certificates
previously
granted and currently in force under this act or Act No.
198
of the Public Acts of 1974, as amended, being sections 207.551
to
207.571 of the Michigan Compiled Laws 1974 PA 198, MCL 207.551
to 207.572, exceeds 5% of the state equalized valuation of the
local governmental unit, the legislative body of the local
governmental unit shall make a separate finding and shall include a
statement in its resolution approving the application that
exceeding that amount shall not have the effect of substantially
impeding the operation of the local government unit or impairing
the financial soundness of any affected taxing unit.
(2)
The Except as otherwise
provided in subsection (3), the
legislative body of the local governmental unit shall not approve
an application for an exemption certificate unless the applicant
complies with all of the following requirements:
(a) The commencement of the restoration, replacement, or
construction of the facility does not occur before the
establishment of the commercial redevelopment district. An
application for an exemption certificate shall be valid if filed
within 45 days after commencement of the restoration, replacement,
or construction.
(b) The application relates to a construction, restoration, or
replacement program which when completed constitutes a new,
replacement, or restored facility within the meaning of this act
and which shall be situated within a commercial redevelopment
district established in a local governmental unit eligible under
this act to establish such a district.
(c) Completion of the facility is calculated to, and will at
the time of issuance of the certificate have the reasonable
likelihood to, increase commercial activity, create employment,
retain employment, or prevent a loss of employment in the community
in which the facility is situated.
(3) The requirements of subsection (2) do not apply to a LEED
certified facility.
Sec. 11. The assessor of each city or township in which there
is
a restored facility, a new facility or a replacement facility
with respect to which 1 or more commercial facilities exemption
certificates are issued and in force shall determine annually as of
December 31 the value of each facility separately, having the
benefit of the certificates and upon receipt of notice of the
filing of an application for the issuance of a certificate, shall
determine and furnish to the local legislative body the value of
the property to which the application pertains and other
information as may be necessary to permit the local legislative
body to make the determinations required by section 10(1).
Sec. 12. (1) Except as provided in subsection (9), there is
levied
upon every owner of a new, replacement, or restored facility
to which a commercial facilities exemption certificate is issued a
specific tax to be known as the commercial facilities tax.
(2) The amount of the commercial facilities tax, in each year,
for a restored facility shall be determined by multiplying the
total mills levied as ad valorem taxes for that year by all taxing
units within which the facility is situated by the taxable value of
the real property of the obsolete commercial property for the tax
year immediately preceding the effective date of the commercial
facilities exemption certificate after deducting the taxable value
of the land and of personal property other than personal property
assessed pursuant to section 14(6) of the general property tax act,
1893 PA 206, MCL 211.14.
(3) The amount of the commercial facilities tax, in each year,
for a new or replacement facility shall be determined by
multiplying the taxable value of the facility excluding the land
and personal property other than personal property assessed
pursuant to section 14(6) of the general property tax act, 1893 PA
206, MCL 211.14, by the sum of 1/2 of the total mills levied as ad
valorem taxes for that year by all taxing units within which the
facility is located other than mills levied under the state
education tax act, 1993 PA 331, MCL 211.901 to 211.906, plus,
subject to section 12a, the number of mills levied under the state
education tax act, 1993 PA 331, MCL 211.901 to 211.906.
(4) The amount of the commercial facilities tax, in each year,
for a LEED certified facility shall be determined by adding the
results of both of the following calculations:
(a) Multiplying the taxable value of the LEED certified
facility for the tax year immediately preceding the commencement of
LEED construction activities, or, if requested by the owner, the
taxable value of the LEED certified facility for the tax year
during which LEED construction activities were commenced, by the
total mills levied as ad valorem taxes for the current year by all
taxing units within which the LEED certified facility is located.
(b) Multiplying the amount of the taxable value of the LEED
certified facility for the current year that exceeds the taxable
value used to calculate the tax under subdivision (a) by the
following percentage of the total mills levied as ad valorem taxes
for the current year by all taxing units within which the LEED
certified facility is located other than mills levied under the
state education tax act, 1993 PA 331, MCL 211.901 to 211.906, plus,
subject to section 12a, the number of mills levied under the state
education tax act, 1993 PA 331, MCL 211.901 to 211.906:
(i) For a facility with basic LEED certification, 80%.
(ii) For a facility with silver LEED certification, 70%.
(iii) For a facility with gold LEED certification, 60%.
(iv) For a facility with platinum LEED certification, 50%.
(5) (4)
The commercial facilities tax shall
be collected,
disbursed, and assessed in accordance with this act.
(6) (5)
The commercial facilities tax is an
annual tax,
payable at the same times, in the same installments, and to the
same officer or officers as taxes imposed under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155, are payable.
Except as otherwise provided in this section, the officer or
officers shall disburse the commercial facilities tax payments
received each year to and among the state, cities, townships,
villages, school districts, counties, and authorities, at the same
times and in the same proportions as required by law for the
disbursement of taxes collected under the general property tax act,
1893 PA 206, MCL 211.1 to 211.155.
(7) (6)
Except as provided in subsection (7)
(8), for
intermediate school districts 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 school aid,
shall be paid instead 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 the sum of any industrial
facility taxes prescribed by 1974 PA 198, 207.551 to 207.572, and
the commercial facilities taxes paid to the state treasury to the
credit of the state school aid fund that would otherwise be
disbursed to the local or intermediate school district, under
section 11 of 1974 PA 198, MCL 207.561, and this section, exceeds
the amount received by the local or 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 local or intermediate
school district an amount equal to the difference between the sum
of the industrial facility taxes and the commercial facilities
taxes paid to the state treasury to the credit of the state school
aid fund and the amount the local or 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. This
subsection does not apply to taxes levied for either of the
following:
(a) Mills allocated to an intermediate school district for
operating purposes as provided for under the property tax
limitation act, 1933 PA 62, MCL 211.201 to 211.217a.
(b) An intermediate school district that is not receiving
state aid under section 56 or 62 of the state school aid act of
1979, 1979 PA 94, MCL 388.1656 and 388.1662.
(8) (7)
For commercial facilities 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.
(9) (8)
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.
(10) (9)
A new, replacement, or restored 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 commercial
facilities 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 commercial facilities 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 commercial facilities 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.
(11) (10)
As used in this act, facility does
not include a
casino. 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.
