HOUSE BILL No. 4101


     January 31, 2001, Introduced by Reps. Koetje, Bishop, Gosselin, Raczkowski, Mortimer, Ehardt, Kooiman, Kowall and Richner and referred to the
Committee on Tax Policy.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   (MCL 211.1 to 211.157) by adding section 7gg.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 7GG.  (1) THE GOVERNING BODY OF A CITY, VILLAGE, OR

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      TOWNSHIP MAY ADOPT A RESOLUTION TO PROVIDE FOR THE EXEMPTION FROM

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      THE COLLECTION OF TAXES UNDER THIS ACT OF NOT MORE THAN 50% OF

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      THE TAXABLE VALUE OF ALL HOMESTEAD PROPERTY LOCATED IN AN ELIGI-

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      BLE DISTRICT OR DISTRICTS DESIGNATED IN THE RESOLUTION.  A COPY

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      OF THE RESOLUTION SHALL BE FILED WITH THE STATE TAX COMMISSION

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      AND SHALL NOT BECOME EFFECTIVE UNLESS APPROVED AS PROVIDED IN

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      SUBSECTION (3).

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           (2) SUBJECT TO SUBSECTION (3), THE EXEMPTION UNDER THIS

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      SECTION SHALL BECOME EFFECTIVE ON THE DECEMBER 31 IMMEDIATELY

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      SUCCEEDING THE ADOPTION OF THE RESOLUTION BY THE GOVERNING BODY


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      OF THE CITY, VILLAGE, OR TOWNSHIP AND SHALL CONTINUE IN EFFECT

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      FOR A PERIOD SPECIFIED IN THE RESOLUTION, NOT TO EXCEED 10 YEARS,

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      OR UNTIL THE HOMESTEAD'S EXEMPTION IS RESCINDED PURSUANT TO SEC-

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      TION 7CC.

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           (3) NOT MORE THAN 60 DAYS AFTER RECEIPT OF A COPY OF A RESO-

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      LUTION ADOPTED UNDER SUBSECTION (1), THE STATE TAX COMMISSION

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      SHALL APPROVE OR DISAPPROVE THE RESOLUTION.  THE STATE TAX COM-

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      MISSION SHALL APPROVE THE RESOLUTION IF THE STATE TAX COMMISSION

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      DETERMINES THAT THE EXEMPTION IS NECESSARY TO ENCOURAGE RESIDEN-

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      TIAL HOME OWNERSHIP WITHIN THE ELIGIBLE DISTRICT DESIGNATED IN

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      THE RESOLUTION.  THE STATE TREASURER SHALL ADVISE THE STATE TAX

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      COMMISSION AS TO WHETHER EXEMPTING HOMESTEAD PROPERTY IN THE ELI-

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      GIBLE DISTRICT IS NECESSARY TO ENCOURAGE RESIDENTIAL HOME OWNER-

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      SHIP WITHIN THE ELIGIBLE DISTRICT.

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           (4) AS USED IN THIS SECTION:

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           (A) "ELIGIBLE DISTRICT" MEANS 1 OR MORE OF THE FOLLOWING:

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           (i) AN INDUSTRIAL DEVELOPMENT DISTRICT AS THAT TERM IS

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      DEFINED IN 1974 PA 198, MCL 207.551 TO 207.572.

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           (ii) A RENAISSANCE ZONE AS THAT TERM IS DEFINED IN THE

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      MICHIGAN RENAISSANCE ZONE ACT, 1996 PA 376, MCL 125.2681 TO

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      125.2696.

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           (iii) AN ENTERPRISE ZONE AS THAT TERM IS DEFINED IN THE

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      ENTERPRISE ZONE ACT, 1985 PA 224, MCL 125.2101 TO 125.2123.

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           (iv) A BROWNFIELD REDEVELOPMENT ZONE AS THAT TERM IS DEFINED

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      IN THE BROWNFIELD REDEVELOPMENT FINANCING ACT, 1996 PA 381,

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      MCL 125.2651 TO 125.2672.





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           (v) AN EMPOWERMENT ZONE DESIGNATED UNDER SUBCHAPTER U OF

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      CHAPTER 1 OF THE INTERNAL REVENUE CODE OF 1986, 26 U.S.C. 1391 TO

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      1397F.

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           (vi) AN AUTHORITY DISTRICT OR A DEVELOPMENT AREA AS THOSE

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      TERMS ARE DEFINED IN THE TAX INCREMENT FINANCE AUTHORITY ACT,

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      1980 PA 450, MCL 125.1801 TO 125.1830.

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           (vii) AN AUTHORITY DISTRICT AS THAT TERM IS DEFINED IN THE

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      LOCAL DEVELOPMENT FINANCING ACT, 1986 PA 281, MCL 125.2151 TO

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      125.2174.

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           (viii) A DOWNTOWN DISTRICT OR A DEVELOPMENT AREA AS THOSE

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      TERMS ARE DEFINED IN 1975 PA 197, MCL 125.1651 TO 125.1681.

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           (B) "HOMESTEAD" MEANS THAT TERM AS DEFINED IN SECTION 7DD.

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           (C) "HOMESTEAD PROPERTY" MEANS A HOMESTEAD FOR WHICH AN

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      EXEMPTION HAS BEEN GRANTED PURSUANT TO SECTION 7CC.





























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