SENATE BILL No. 868 November 2, 1999, Introduced by Senators MURPHY, HART, V. SMITH, PETERS, MILLER, A. SMITH, LELAND, EMERSON and DINGELL and referred to the Committee on Economic Development, International Trade and Regulatory Affairs. A bill to amend 1996 PA 376, entitled "Michigan renaissance zone act," by amending section 10 (MCL 125.2690), as amended by 1999 PA 36. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 10. (1) An individual who is a resident of a renais- 2 sance zone or a business that is located and conducts business 3 activity within a renaissance zone or a person that owns property 4 located in a renaissance zone is not eligible for the exemption, 5 deduction, or credit listed in section 9(1) or (2) for that tax- 6 able year if 1 or more of the following apply: 7 (a) The resident, business, or property owner is delinquent 8 under 1 or more of the following: 9 (i) The single business tax act, 1975 PA 228, MCL 208.1 to 10 208.145. 04269'99 JLB 2 1 (ii) The income tax act of 1967, 1967 PA 281, MCL 206.1 to 2 206.532. 3 (iii) 1974 PA 198, MCL 207.551 to 207.572. 4 (iv) The commercial redevelopment act, 1978 PA 255, MCL 5 207.651 to 207.668. 6 (v) The enterprise zone act, 1985 PA 224, MCL 125.2101 to 7 125.2123. 8 (vi) 1953 PA 189, MCL 211.181 to 211.182. 9 (vii) The technology park development act, 1984 PA 385, MCL 10 207.701 to 207.718. 11 (viii) Part 511 of the natural resources and environmental 12 protection act, 1994 PA 451, MCL 324.51101 to 324.51120. 13 (ix) The neighborhood enterprise zone act, 1992 PA 147, MCL 14 207.771 to 207.787. 15 (x) The city utility users tax act, 1990 PA 100, MCL 16 141.1151 to 141.1177. 17 (b) The resident, business, or property owner is substan- 18 tially delinquent as defined in a written policy by the qualified 19 local governmental unit in which the renaissance zone is located 20 under 1 or both of the following: 21 (i) The city income tax act, 1964 PA 284, MCL 141.501 to 22 141.787. 23 (ii) Taxes, fees, and special assessments collected under 24 the general property tax act, 1893 PA 206, MCL 211.1 to 211.157. 25 (c) For residential rental property in a renaissance zone, 26 the residential rental property is not in substantial compliance 27 with all applicable state and local zoning, building, and housing 04269'99 3 1 laws, ordinances, or codes and the residential rental property 2 owner has not filed an affidavit before December 31 in the imme- 3 diately preceding tax year with the local tax collecting unit in 4 which the residential rental property is located as required 5 under section 7ff of the general property tax act, 1893 PA 206, 6 MCL 211.7ff. 7 (2) A business located in a qualified local governmental 8 unit that relocates from outside a renaissance zone into a 9 renaissance zone in that same qualified local governmental unit 10 shall not receive the exemptions, deductions, or credits 11 described in section 9 unless the governing body of the qualified 12 local governmental unit in which the renaissance zone is located 13 approves the relocation of the business. 14 (3) Unless approval of the relocation is obtained under sub- 15 section (2), if a business relocates more than 25 full-time 16 equivalent jobs to a renaissance zone, the business shall notify 17 the Michigan strategic fund in the department of management and 18 budget and the local governmental unit from which the jobs are 19 being relocated of the relocation. The business is not eligible 20 for the exemptions, deductions, or credits listed in section 9(1) 21 and (2) if the local governmental unit from which the jobs are 22 being relocated adopts a resolution objecting to the relocation 23 of the jobs within 60 days after the notification by the 24 business. The business becomes eligible for the exemptions, 25 deductions, and credits listed in section 9(1) and (2) when the 26 local governmental unit that objected to the relocation rescinds 27 its objection by resolution. A local governmental unit that 04269'99 4 1 objects to the relocation of jobs shall file a copy of all 2 resolutions of objection and rescission with the department of 3 treasury, Michigan strategic fund in the department of management 4 and budget, county or local governmental unit that created the 5 renaissance zone into which the jobs are transferred, and the 6 local governmental unit into which the jobs are transferred. As 7 used in this subsection only, "local governmental unit" means a 8 city, village, or township. 9 (4) An individual who is a resident of a renaissance zone is 10 eligible for an exemption, deduction, or credit under section 11 9(1) and (2) until the department of treasury determines that the 12 aggregate state and local tax revenue forgone as a result of all 13 exemptions, deductions, or credits granted under this act to that 14 individual reaches $10,000,000.00. 15 (5) A casino located and conducting business activity within 16 a renaissance zone is not eligible for the exemption, deduction, 17 or credit listed in section 9(1) or (2). Real property in a 18 renaissance zone on which a casino is operated, personal property 19 of a casino located in a renaissance zone, and all property asso- 20 ciated or affiliated with the operation of a casino is not eligi- 21 ble for the exemption, deduction, or credit listed in section 22 9(1) or (2). As used in this subsection, "casino" means a casino 23 or a parking lot, hotel, motel, or retail store owned or operated 24 by a casino, an affiliate, or an affiliated company, regulated by 25 this state pursuant to the Michigan gaming control and revenue 26 act, the Initiated Law of 1996, MCL 432.201 to 432.226. 04269'99 5 1 (6) BEGINNING JANUARY 1, 2000, A BUSINESS THAT IS LOCATED IN 2 A RENAISSANCE ZONE IS NOT ELIGIBLE FOR THE EXEMPTION, DEDUCTION, 3 OR CREDIT DESCRIBED IN SECTION 9 IF THAT BUSINESS DOES NOT PRO- 4 VIDE MEDICAL INSURANCE BENEFITS TO ITS FULL-TIME EMPLOYEES WHO 5 ARE EMPLOYED IN THE RENAISSANCE ZONE. 04269'99 Final page. JLB