Bill Text: MI HB4077 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: Economic development: other; commercial rehabilitation certificates; modify under certain circumstances. Amends secs. 6 & 8 of 2005 PA 210 (MCL 207.846 & 207.848).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2019-07-10 - Assigned Pa 44'19 With Immediate Effect [HB4077 Detail]
Download: Michigan-2019-HB4077-Engrossed.html
HB-4077, As Passed House, March 20, 2019
SUBSTITUTE FOR
HOUSE BILL NO. 4077
A bill to amend 2005 PA 210, entitled
"Commercial rehabilitation act,"
by amending sections 6 and 8 (MCL 207.846 and 207.848), section 8
as amended by 2011 PA 82.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) Not more than 60 days after receipt of a copy of
the application and resolution adopted under section 5, the
commission shall approve or disapprove the resolution.
(2) Following approval of the application by the legislative
body of the qualified local governmental unit and the commission,
the commission shall issue to the applicant a commercial
rehabilitation exemption certificate in the form the commission
determines, which shall contain all of the following:
(a) A legal description of the real property on which the
qualified facility is located.
(b) A statement that unless revoked as provided in this act
the certificate shall remain in force for the period stated in the
certificate.
(c) A statement of the taxable value of the qualified
facility, separately stated for real and personal property, for the
tax year immediately preceding the effective date of the
certificate after deducting the taxable value of the land and
personal property other than personal property assessed pursuant to
sections 8(d) and 14(6) of the general property tax act, 1893 PA
206, MCL 211.8 and 211.14.
(d) A statement of the period of time authorized by the
legislative body of the qualified local governmental unit within
which the rehabilitation shall be completed.
(e) If the period of time authorized by the legislative body
of the qualified local governmental unit pursuant to subdivision
(b) is less than 10 years, the exemption certificate shall contain
the factors, criteria, and objectives, as determined by the
resolution of the qualified local governmental unit, necessary for
extending the period of time, if any.
(3)
The Except as otherwise
provided in section 8(4), the
effective date of the certificate is the December 31 immediately
following the date of issuance of the certificate.
(4) The commission shall file with the clerk of the qualified
local governmental unit a copy of the commercial rehabilitation
exemption certificate, and the commission shall maintain a record
of all certificates filed. The commission shall also send, by
certified mail, a copy of the commercial rehabilitation exemption
certificate to the applicant and the assessor of the local tax
collecting unit in which the qualified facility is located.
Sec. 8. (1) If the taxable value of the property proposed to
be exempt pursuant to an application under consideration,
considered together with the aggregate taxable value of property
exempt under certificates previously granted and currently in force
under this act or under 1974 PA 198, MCL 207.551 to 207.572,
exceeds 5% of the taxable value of the qualified local governmental
unit, the legislative body of the qualified 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 qualified local governmental unit or impairing the financial
soundness of an affected taxing unit.
(2) The legislative body of the qualified local governmental
unit shall not approve an application for a commercial
rehabilitation exemption certificate unless the applicant complies
with all of the following requirements:
(a) Except as otherwise provided in this subdivision or
subsection (3), the commencement of the rehabilitation of the
qualified facility does not occur earlier than 6 months before the
applicant files the application for the commercial rehabilitation
exemption certificate. However, through December 31, 2009, for a
qualified facility that is a qualified retail food establishment,
the commencement of the rehabilitation does not occur earlier than
42 months before the applicant files the application for the
commercial rehabilitation exemption certificate.
(b) The application relates to a rehabilitation program that
when completed constitutes a qualified facility within the meaning
of this act and that shall be situated within a commercial
rehabilitation district established in a qualified local
governmental unit eligible under this act.
(c) Completion of the qualified 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, prevent a loss of employment, revitalize urban
areas, or increase the number of residents in the community in
which the qualified facility is situated.
(d) The applicant states, in writing, that the rehabilitation
of the qualified facility, excluding qualified retail food
establishments through December 31, 2009, would not be undertaken
without the applicant's receipt of the exemption certificate.
(e) The applicant is not delinquent in the payment of any
taxes related to the qualified facility.
(3) The provisions of subsection (2)(a) and (d) and the
provision contained in section 4(1) that provides that the district
must be established before an application is filed do not apply to
the rehabilitation of a qualified facility located in a commercial
rehabilitation district established by the legislative body of the
qualified local governmental unit in 2011 for construction or
rehabilitation that was commenced in August 2010 and for which an
application for a commercial rehabilitation exemption certificate
was filed in June 2010.
(4) For certificates issued by the commission after January 1,
2018, if the clerk of the qualified local governmental unit failed
to forward an application that was approved by the legislative body
of the qualified local governmental unit before October 31 of that
year to the commission before October 31 of that same year but
filed the application with the commission before October 31 of the
immediately succeeding year and the commission approves that
application, then the effective date of that certificate is
December 31 of the year in which the qualified local governmental
unit approved the application.
Enacting section 1. This amendatory act is intended to be
retroactive and effective beginning December 31, 2017.
