Bill Text: MI SB1236 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Economic development; commercial redevelopment; incentives to invest in transit-oriented facilities and transit-oriented development; provide for. Amends secs. 3 & 4 of 1978 PA 255 (MCL 207.653 & 207.654).
Spectrum: Bipartisan Bill
Status: (Passed) 2010-12-29 - Assigned Pa 0244'10 With Immediate Effect [SB1236 Detail]
Download: Michigan-2009-SB1236-Engrossed.html
SB-1236, As Passed House, December 1, 2010
SENATE BILL No. 1236
March 18, 2010, Introduced by Senators GILBERT, ALLEN, JACOBS, CHERRY, PAPPAGEORGE, RICHARDVILLE, HARDIMAN, BIRKHOLZ, KAHN, HUNTER, GEORGE, CLARKE, GLEASON, SWITALSKI and BARCIA and referred to the Committee on Commerce and Tourism.
A bill to amend 1978 PA 255, entitled
"Commercial redevelopment act,"
by amending sections 3 and 4 (MCL 207.653 and 207.654), as amended
by 2008 PA 227.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) "Commercial facilities tax" means the specific tax
levied under this act.
(2) "Commercial facilities exemption certificate" means a
certificate issued pursuant to section 8.
(3) "Commercial property" means land improvements classified
by law for general ad valorem tax purposes as real property
including real property assessable as personal property pursuant to
sections 8(d) and 14(6) of the general property tax act, 1893 PA
206, MCL 211.8 and 211.14, whether completed or in the process of
construction, the primary purpose and use of which is the operation
of a commercial business enterprise and shall include office,
engineering, research and development, warehousing parts
distribution, retail sales, hotel or motel development, and other
commercial
facilities. but shall Commercial business enterprise
also includes a business that owns or operates a transit-oriented
development or a transit-oriented facility. Commercial property
does not include any of the following:
(a) Land.
(b) Property of a public utility.
(c) Housing, except that portion of a building containing
nonhousing commercial activity.
(d) Financial organization. As used in this subdivision,
"financial organization" means a bank, industrial bank, trust
company, building and loan or savings and loan association, bank
holding company as defined in 12 USC 1841, credit union, safety and
collateral deposit company, regulated investment company as defined
in the internal revenue code, and any other association, joint
stock company, or corporation at least 90% of whose assets consist
of intangible personal property and at least 90% of whose gross
receipts income consists of dividends or interest or other charges
resulting from the use of money or credit. The exclusion of
financial institutions shall not apply to the otherwise included
property of financial institutions which is located in the
designated area of a city that is either the largest city in
population within the county, as determined by the latest federal
census; or is a city that had more than the median percentage for
all cities in this state of its residents below the poverty line as
determined by the latest federal census. Each city qualified to not
be excluded under this subdivision shall designate only 1
commercial area for purposes of this provision, which area may be
conterminous with, or included within, a commercial redevelopment
district and in which area a majority of the land must be zoned
commercially.
Commercial property may be owned or leased. If, in the case of
leased property, the lessee is liable for payment of ad valorem
property taxes, and furnishes proof of that liability, the lessee
is eligible for the exemption. If the lessor is liable for payment
of ad valorem property taxes and furnishes proof of that liability,
the lessor is eligible for the exemption.
(4) "Commercial redevelopment district" means an area of a
local governmental unit established as provided in section 5.
(5) "Commission" means the state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(6) "Facility" means a restored facility, a replacement
facility, or a new facility.
Sec. 4. (1) "Local governmental unit" means, except as
otherwise provided in this subsection, a city, village, or
township. For local governmental units designating a commercial
redevelopment district after June 30, 2008, local governmental unit
means a city or village.
(2) "New facility" means 1 of the following:
(a) Through June 30, 2008, new commercial property other than
a replacement facility to be built in a redevelopment district.
(b) Beginning July 1, 2008, new commercial property other than
a replacement facility to be built in a redevelopment district that
meets all of the following:
(i) Is located on property that is zoned to allow for mixed use
that includes high-density residential use.
(ii) Is located in a qualified downtown revitalization district
as defined in section 2 of the neighborhood enterprise zone act,
1992 PA 147, MCL 207.772.
(iii) The local governmental unit in which the new facility is
to be located does all of the following:
(A) Establishes and implements an expedited local permitting
and inspection process in the commercial redevelopment district.
(B) By resolution provides for walkable nonmotorized
interconnections, including sidewalks and streetscapes throughout
the commercial redevelopment district.
(3) "Obsolete commercial property" means commercial property
the condition of which is impaired due to changes in design,
construction, technology, or improved production processes, or
damage due to fire, natural disaster, or general neglect.
(4) "Replacement" means the complete or partial demolition of
obsolete commercial property and the complete or partial
reconstruction or installation of new property of similar utility.
(5) "Replacement facility" means 1 of the following:
(a) Through June 30, 2008, commercial property on the same or
contiguous land within the district which land is or is to be
acquired, constructed, altered, or installed for the purpose of
being substituted for obsolete commercial property together with
any part of the old altered property that remains for use as
commercial property after the replacement.
(b) Beginning July 1, 2008, commercial property on the same or
contiguous land within the district which land is or is to be
acquired, constructed, altered, or installed for the purpose of
being substituted for obsolete commercial property and any part of
the old altered property that remains for use as commercial
property after the replacement, that meets all of the following:
(i) Is located on property that is zoned to allow for mixed use
that includes high-density residential use.
(ii) Is located in a qualified downtown revitalization district
as defined in section 2 of the neighborhood enterprise zone act,
1992 PA 147, MCL 207.772.
(iii) The local governmental unit in which the replacement
facility is to be located does all of the following:
(A) Establishes and implements an expedited local permitting
and inspection process in the commercial redevelopment district.
(B) By resolution provides for walkable nonmotorized
interconnections, including sidewalks and streetscapes throughout
the commercial redevelopment district.
(6) "Restoration" means changes to obsolete commercial
property other than replacement as may be required to restore the
property, together with all appurtenances thereto, to an
economically efficient condition. Restoration includes major
renovation including but not 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,
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 the commercial property to an
economically efficient condition. Restoration does not include
improvements aggregating less than 10% of the true cash value of
the property at commencement of the restoration of the commercial
property.
(7) "Restored facility" means a facility that has undergone
restoration.
(8) "State equalized valuation" means the valuation determined
under 1911 PA 44, MCL 209.1 to 209.8.
(9) "Transit-oriented development" means infrastructure
improvements that are located within 1/2 mile of a transit station
or transit-oriented facility that promotes transit ridership or
passenger rail use.
(10) "Transit-oriented facility" means a facility that houses
a transit station in a manner that promotes transit ridership or
passenger rail use.
