HB-4629, As Passed House, May 8, 2007

SUBSTITUTE FOR

HOUSE BILL NO. 4629

     A bill to amend 1974 PA 198, entitled

"An act to provide for the establishment of plant rehabilitation

districts and industrial development districts in local

governmental units; to provide for the exemption from certain

taxes; to levy and collect a specific tax upon the owners of

certain facilities; to impose and provide for the disposition of an

administrative fee; to provide for the disposition of the tax; to

provide for the obtaining and transferring of an exemption

certificate and to prescribe the contents of those certificates; to

prescribe the powers and duties of the state tax commission and

certain officers of local governmental units; and to provide

penalties,"

by amending section 3 (MCL 207.553), as amended by 1996 PA 1.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3. (1) "Plant rehabilitation district" means an area of a

local governmental unit established as provided in section 4.

     (2) "Industrial development district" means an area

established by a local governmental unit as provided in section 4.

     (3) "Industrial facility tax" means the specific tax levied

under this act.

     (4) "Industrial facilities exemption certificate" means a

certificate issued pursuant to sections 5, 6, and 7.

     (5) "Replacement" means the complete or partial demolition of

obsolete industrial property and the complete or partial

reconstruction or installation of new property of similar utility.

     (6) "Restoration" means changes to obsolete industrial

property other than replacement as may be required to restore the

property, together with all appurtenances to the property, to an

economically efficient functional condition. Restoration does not

include delayed maintenance or the substitution or addition of

tangible personal property without major renovation of the

industrial property. A program involving expenditures for changes

to the industrial property improvements aggregating less than 10%

of the true cash value at commencement of the restoration of the

industrial property improvements is delayed maintenance.

Restoration includes major renovation including but not necessarily

limited to the improvement of floor loads, correction of deficient

or excessive height, new or improved 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, improvements or modifications of machinery and

equipment to improve efficiency, decrease operating costs, or to

increase productive capacity, and other physical changes as may be

required to restore the industrial property to an economically

efficient functional condition, and shall include land and building

improvements and other tangible personal property incident to the

improvements.

     (7) "State equalized valuation" means the valuation determined

under Act No. 44 of the Public Acts of 1911, being sections 209.1

to 209.8 of the Michigan Compiled Laws 1911 PA 44, MCL 209.1 to

209.8.

     (8) "Speculative building" means a new building that meets all

of the following criteria and the machinery, equipment, furniture,

and fixtures located in the new building:

     (a) The building is owned by, or approved as a speculative

building by resolution of, a local governmental unit in which the

building is located or the building is owned by a development

organization and located in the district of the development

organization.

     (b) The building is constructed for the purpose of providing a

manufacturing facility before the identification of a specific user

of that building.

     (c) The building does not qualify as a replacement facility.

     (9) "Development organization" means any economic development

corporation, downtown development authority, tax increment

financing authority, or an organization under the supervision of

and created for economic development purposes by a local

governmental unit.

     (10) "Manufacturing facility" means buildings and structures,

including the machinery, equipment, furniture, and fixtures located

therein, the primary purpose of which is 1 or more of the

following:

     (a) The manufacture of goods or materials or the processing of

goods and materials by physical or chemical change.

     (b) The provision of research and development laboratories of

companies whether or not the company manufactures the products

developed from their research activities.

     (11) "Taxable value" means that value determined under section

27a of the general property tax act, Act No. 206 of the Public Acts

of 1893, being section 211.27a of the Michigan Compiled Laws 1893

PA 206, MCL 211.27a.

     (12) "Strategic response center" means a facility that

provides catastrophe response solutions through the development and

staffing of a national response center for which a plant

rehabilitation district or an industrial development district was

created before December 31, 2007.

     Enacting section 1. This amendatory act does not take effect

unless Senate Bill No. 400 of the 94th Legislature is enacted into

law.