HB-5488, As Passed Senate, December 12, 2007
November 28, 2007, Introduced by Rep. Espinoza and referred to the Committee on Tax Policy.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending sections 9 and 10 (MCL 125.2689 and 125.2690), section
10 as amended by 2005 PA 164.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9. (1) Except as otherwise provided in section 10, an
individual who is a resident of a renaissance zone or a business
that is located and conducts business activity within a renaissance
zone shall receive the exemption, deduction, or credit as provided
in the following for the period provided under section 6(2)(b):
(a)
Section 39b of the single business tax act, Act No. 228 of
the
Public Acts of 1975, being section 208.39b of the Michigan
Compiled
Laws 1975 PA 228, MCL 208.39b,
or section 433 of the
Michigan business tax act, 2007 PA 36, MCL 208.1433.
(b)
Section 31 of the income tax act of 1967, Act No. 281 of
the
Public Acts of 1967, being section 206.31 of the Michigan
Compiled
Laws 1967 PA 281, MCL 206.31.
(c)
Section 35 of chapter 2 of the city income tax act, Act
No.
284 of the Public Acts of 1964, being section 141.635 of the
Michigan Compiled Laws 1964 PA 284, MCL 141.635.
(d)
Section 5 of the city utility users tax act, Act No. 100
of
the Public Acts of 1990, being section 141.1155 of the Michigan
Compiled
Laws 1990 PA 100, MCL
141.1155.
(2) Except as otherwise provided in section 10, property
located in a renaissance zone is exempt from the collection of
taxes under all of the following:
(a)
Section 7ff of the general property tax act, Act No. 206
of
the Public Acts of 1893, being section 211.7ff of the Michigan
Compiled
Laws 1893 PA 206, MCL 211.7ff.
(b)
Section 11 of Act No. 198 of the Public Acts of 1974,
being
section 207.561 of the Michigan Compiled Laws 1974 PA 198,
MCL 207.561.
(c)
Section 12 of the commercial redevelopment act, Act No.
255
of the Public Acts of 1978, being section 207.662 of the
Michigan Compiled Laws 1978 PA 255, MCL 207.662.
(d)
Section 21c of the enterprise zone act, Act No. 224 of the
Public
Acts of 1985, being section 125.2121c of the Michigan
Compiled
Laws 1985 PA 224, MCL
125.2121c.
(e)
Section 1 of Act No. 189 of the Public Acts of 1953, being
section
211.181 of the Michigan Compiled Laws 1953 PA 189, MCL
211.181.
(f)
Section 12 of the technology park development act, Act No.
385
of the Public Acts of 1984, being section 207.712 of the
Michigan Compiled Laws 1984 PA 385, MCL 207.712.
(g)
Section 51105 of part 511 (commercial forests) of the
natural
resources and environmental protection act, Act No. 451 of
the
Public Acts of 1994, being section 324.51105 of the Michigan
Compiled
Laws 1994 PA 451, MCL
324.51105.
(h)
Section 9 of the neighborhood enterprise zone act, Act No.
147
of the Public Acts of 1992, being section 207.779 of the
Michigan Compiled Laws 1992 PA 147, MCL 207.779.
(3) During the last 3 years that the taxpayer is eligible for
an exemption, deduction, or credit described in subsections (1) and
(2), the exemption, deduction, or credit shall be reduced by the
following percentages:
(a) For the tax year that is 2 years before the final year of
designation as a renaissance zone, the percentage shall be 25%.
(b) For the tax year immediately preceding the final year of
designation as a renaissance zone, the percentage shall be 50%.
(c) For the tax year that is the final year of designation as
a renaissance zone, the percentage shall be 75%.
Sec. 10. (1) An individual who is a resident of a renaissance
zone or a business that is located and conducts business activity
within a renaissance zone or a person that owns property located in
a renaissance zone is not eligible for the exemption, deduction, or
credit listed in section 9(1) or (2) for that taxable year if 1 or
more of the following apply:
(a) The resident, business, or property owner is delinquent on
December 31 of the prior tax year under 1 or more of the following:
(i) The single business tax act, 1975 PA 228, MCL 208.1 to
208.145, or the Michigan business tax act, 2007 PA 36, MCL 208.1101
to 208.1601.
(ii) The income tax act of 1967, 1967 PA 281, MCL 206.1 to
206.532.
(iii) 1974 PA 198, MCL 207.551 to 207.572.
(iv) The commercial redevelopment act, 1978 PA 255, MCL 207.651
to 207.668.
(v) The enterprise zone act, 1985 PA 224, MCL 125.2101 to
125.2123.
(vi) 1953 PA 189, MCL 211.181 to 211.182.
(vii) The technology park development act, 1984 PA 385, MCL
207.701 to 207.718.
(viii) Part 511 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.51101 to 324.51120.
(ix) The neighborhood enterprise zone act, 1992 PA 147, MCL
207.771 to 207.786.
(x) The city utility users tax act, 1990 PA 100, MCL 141.1151
to 141.1177.
(b) The resident, business, or property owner is substantially
delinquent as defined in a written policy by the qualified local
governmental unit in which the renaissance zone is located on
December 31 of the prior tax year under 1 or both of the following:
(i) The city income tax act, 1964 PA 284, MCL 141.501 to
141.787.
(ii) Taxes, fees, and special assessments collected under the
general
property tax act, 1893 PA 206, MCL 211.1 to 211.157
211.155.
(c) For residential rental property in a renaissance zone, the
residential rental property is not in substantial compliance with
all applicable state and local zoning, building, and housing laws,
ordinances, or codes and, except as otherwise provided in this
subdivision, the residential rental property owner has not filed an
affidavit before December 31 in the immediately preceding tax year
with the local tax collecting unit in which the residential rental
property is located as required under section 7ff of the general
property tax act, 1893 PA 206, MCL 211.7ff. Beginning December 31,
2004, a residential rental property owner is not required to file
an affidavit if the qualified local governmental unit in which the
residential rental property is located determines that the
residential rental property is in substantial compliance with all
applicable state and local zoning, building, and housing laws,
ordinances, and codes on December 31 of the immediately preceding
tax year.
(2) An individual who is a resident of a renaissance zone is
eligible for an exemption, deduction, or credit under section 9(1)
and (2) until the department of treasury determines that the
aggregate state and local tax revenue forgone as a result of all
exemptions, deductions, or credits granted under this act to that
individual reaches $10,000,000.00.
(3) A casino located and conducting business activity within a
renaissance zone is not eligible for the exemption, deduction, or
credit listed in section 9(1) or (2). Real property in a
renaissance zone on which a casino is operated, personal property
of a casino located in a renaissance zone, and all property
associated or affiliated with the operation of a casino is not
eligible for the exemption, deduction, or credit listed in section
9(1) or (2). As used in this subsection, "casino" means a casino or
a parking lot, hotel, motel, or retail store owned or operated by a
casino, an affiliate, or an affiliated company, regulated by this
state pursuant to the Michigan gaming control and revenue act, the
Initiated Law of 1996, MCL 432.201 to 432.226.
(4) For tax years beginning on or after January 1, 1997, an
individual who is a resident of a renaissance zone shall not be
denied the exemption under subsection (1) if the individual failed
to file a return on or before December 31 of the prior tax year
under subsection (1)(a)(ii) and that individual was entitled to a
refund under that act.