SENATE BILL No. 530

 

 

May 24, 2005, Introduced by Senator THOMAS and referred to the Committee on Finance.

 

 

 

     A bill to amend 1992 PA 147, entitled

 

"Neighborhood enterprise zone act,"

 

by amending sections 12 and 13 (MCL 207.782 and 207.783), section

 

12 as amended by 2004 PA 396.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 12. (1) Except as otherwise provided in this section,

 

unless earlier revoked as provided in section 11, a neighborhood

 

enterprise zone certificate issued before January 1, 2005 shall

 

remain in effect for 6 to 12 years and a neighborhood enterprise

 

zone certificate issued after December 31, 2004 shall remain in

 

effect for 6 to 15 years from the effective date of the certificate

 

as determined by the governing body of the local governmental unit.

 

The governing body of a local governmental unit that issued a

 


neighborhood enterprise zone certificate for a new facility or a

 

rehabilitated facility before January 1, 2005 may extend the

 

certificate for an additional 3 years if the extension is approved

 

by resolution before the original neighborhood enterprise zone

 

certificate expires. If the homestead facility, new facility, or

 

rehabilitated facility is sold or transferred to another owner who

 

otherwise complies with this act and, for a homestead facility or a

 

new facility, uses the homestead facility or the new facility as a

 

principal residence, the certificate shall remain in effect.

 

     (2) If a rehabilitated facility was sold before December 29,

 

1994 and a certificate was in effect for that facility at the time

 

of the sale, and the new owner of the rehabilitated facility

 

otherwise complies with this act, the certificate shall be

 

reinstated and remain in effect for the remainder of the original

 

period described in subsection (1), unless earlier revoked under

 

section 11.

 

     (3) Except as provided in subsection (4), a change in

 

ownership of a rehabilitated facility constituting all or a portion

 

of a qualified historic building, occurring after the effective

 

date of a neighborhood enterprise zone certificate for that

 

rehabilitated facility, shall not affect the validity of that

 

neighborhood enterprise zone certificate, and the certificate shall

 

remain in effect for the period specified in this section as long

 

as the rehabilitated facility has as its primary purpose

 

residential housing.

 

     (4) Unless revoked earlier as provided in section 11, a

 

neighborhood enterprise zone certificate in effect for a

 


rehabilitated facility constituting all or a portion of a qualified

 

historic building shall remain in effect for 11 to 17 years from

 

the effective date of the certificate as determined by the

 

governing body of the local governmental unit. However, if a

 

rehabilitated facility constituting all or a portion of a qualified

 

historic building is not transferred or sold to a person who will

 

own and occupy the rehabilitated facility as his or her principal

 

residence within 6 years of the effective date of the neighborhood

 

enterprise zone certificate, the neighborhood enterprise zone

 

certificate is revoked.

 

     Sec. 13. (1) The assessor of each local governmental unit in

 

which is located a homestead facility, a new facility, or a

 

rehabilitated facility for which a neighborhood enterprise zone

 

certificate is in effect shall determine annually, with respect to

 

each homestead facility, new facility, or rehabilitated facility,

 

the assessed valuation of the property comprising the facility

 

having the benefit of a neighborhood enterprise zone certificate

 

and the amount of ad valorem property tax that would have been paid

 

with respect to each homestead facility, new facility, and

 

rehabilitated facility under the general property tax act,  Act No.

 

206 of the Public Acts of 1893, being sections 211.1 to 211.157 of

 

the Michigan Compiled Laws  1893 PA 206, MCL 211.1 to 211.157, if

 

the certificate had not been in force, and the assessed valuation

 

on which the neighborhood enterprise zone tax is based for a

 

homestead facility or a rehabilitated facility. A holder of a

 

certificate shall furnish to the assessor the information necessary

 

for the determination.

 


     (2) After making the determinations under subsection (1), the

 

assessor shall send annually notification of those determinations

 

to the Michigan enterprise zone authority and the governing body of

 

each taxing unit that levies taxes upon property in the local

 

governmental unit in which the new facility or rehabilitated

 

facility is located and the holder of the certificate for which the

 

determination is made. The notice shall be sent by certified mail

 

not later than October 15 and shall be based upon the valuation as

 

of the immediately preceding December 31.