SB-1206, As Passed Senate, June 5, 2008
SUBSTITUTE FOR
SENATE BILL NO. 1206
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending sections 6 and 10 (MCL 125.2686 and 125.2690), section
6 as amended by 2006 PA 304 and section 10 as amended by 2008 PA
117.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) The board shall review all recommendations
submitted by the review board and determine which applications meet
the criteria contained in section 7.
(2) The board shall do all of the following:
(a) Designate renaissance zones.
(b) Subject to subsection (3), approve or reject the duration
of renaissance zone status.
(c) Subject to subsection (3), approve or reject the
geographic boundaries and the total area of the renaissance zone as
submitted in the application.
(3) The board shall not alter the geographic boundaries of the
renaissance zone or the duration of renaissance zone status
described in the application unless the qualified local
governmental unit or units and the local governmental unit or units
in which the renaissance zone is to be located consent by
resolution to the alteration.
(4) The board shall not designate a renaissance zone under
section 8 before November 1, 1996 or after December 31, 1996.
(5)
The Except as otherwise
provided in this subsection, the
designation of a renaissance zone under this act shall take effect
on January 1 in the year following designation. However, for
purposes of the taxes exempted under section 9(2), the designation
of a renaissance zone under this act shall take effect on December
31 in the year of designation. For designations made pursuant to
section 8a(2), the board of the Michigan strategic fund may choose
a beginning date, provided that the date must be January 1 of a
year and must not be more than 5 years after the date of
designation. The board of the Michigan strategic fund may provide
that the January 1 beginning date be determined under a written
agreement between the board of the Michigan strategic fund and the
qualified local governmental unit in which the renaissance zone is
to be located. However, for purposes of the taxes exempted under
section 9(2), the designation of a renaissance zone under section
8a(2) shall take effect on December 31 in the year immediately
preceding the year in which the designation under section 8a(2)
takes effect.
(6) The board shall not designate a renaissance zone under
section 8a after December 31, 2002.
(7) Through December 31, 2002, a qualified local governmental
unit in which a renaissance zone was designated under section 8 or
8a may modify the boundaries of that renaissance zone to include
contiguous parcels of property as determined by the qualified local
governmental unit and approval by the review board. The additional
contiguous parcels of property included in a renaissance zone under
this subsection do not constitute an additional distinct geographic
area under section 4(1)(d). If the boundaries of the renaissance
zone are modified as provided in this subsection, the additional
contiguous parcels of property shall become part of the original
renaissance zone on the same terms and conditions as the original
designation of that renaissance zone.
(8) Notwithstanding any other provisions of this act, before
July 1, 2004, a qualified local governmental unit in which a
renaissance zone was designated under section 8a(1) as a
renaissance zone located in a rural area may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than .5 acres in size and that the qualified local
governmental unit previously sought to have included in the zone by
submitting an application in February 2002 that was not acted upon
by the review board. The additional contiguous parcel of property
included in a renaissance zone under this subsection does not
constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
(9) A business that is located and conducts business activity
within a renaissance zone designated under this act, except as
designated under section 8a(2), shall not make a payment in lieu of
taxes to any taxing jurisdiction within the qualified local
governmental unit in which the renaissance zone is located.
(10) Notwithstanding any other provisions of this act, before
July 1, 2006, a qualified local governmental unit in which a
renaissance zone of less than 50 contiguous acres but more than 20
contiguous acres was designated under section 8 or 8a as a
renaissance zone in a city located in a county with a population of
more than 160,000 and less than 170,000 may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than 12 acres in size. The additional contiguous parcel of
property included in a renaissance zone under this subsection does
not constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
(11) Notwithstanding any other provisions of this act, before
July 1, 2006, a qualified local governmental unit in which a
renaissance zone of more than 500 acres was designated under
section 8 or 8a as a renaissance zone in a county with a population
of more than 61,000 and less than 64,000 may modify the boundaries
of that renaissance zone to include a contiguous parcel of property
as determined by the qualified local governmental unit. The
contiguous parcel of property shall only include property that is
less than 12 acres in size. The additional contiguous parcel of
property included in a renaissance zone under this subsection does
not constitute an additional distinct geographic area under section
4(1)(d). If the boundaries of the renaissance zone are modified as
provided in this subsection, the additional contiguous parcel of
property shall become part of the original renaissance zone on the
same terms and conditions as the rest of the property in that
renaissance zone.
(12) Notwithstanding any other provisions of this act, before
July 1, 2006, a qualified local governmental unit in which a
renaissance zone of more than 137 acres was designated under
section 8 or 8a as a renaissance zone in a county with a population
of more than 61,000 and less than 63,000 may modify the boundaries
of that renaissance zone to include a parcel of property that is
separated from the existing renaissance zone by a roadway as
determined by the qualified local governmental unit. The parcel of
property shall only include property that is less than 67 acres in
size. The additional contiguous parcel of property included in a
renaissance zone under this subsection does not constitute an
additional distinct geographic area under section 4(1)(d). If the
boundaries of the renaissance zone are modified as provided in this
subsection, the additional contiguous parcel of property shall
become part of the original renaissance zone on the same terms and
conditions as the rest of the property in that renaissance zone.
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) Former 1975 PA 228 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 211.155.
(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, 1996
IL 1, 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.
(5)
For tax years beginning on or after January 1, 2006, a A
business that is located and conducts business activity within a
renaissance zone shall not be denied the exemption under subsection
(1) if the business failed to file a return on or before December
31 of the prior tax year under subsection (1)(a)(i) and that
business had no tax liability under that act for the tax year for
which the return was not filed.