May 1, 2008, Introduced by Reps. Byrum, Meekhof, Mayes, Simpson, Lindberg, McDowell, Cheeks, Griffin, Gonzales, Melton, Clemente, Polidori, Vagnozzi, Kathleen Law, Bauer, Johnson, Byrnes, Sak, Coulouris, Corriveau, LeBlanc, Meadows, Dean, Espinoza, Jackson and Pavlov and referred to the Committee on Intergovernmental, Urban and Regional Affairs.
A bill to amend 1992 PA 147, entitled
"Neighborhood enterprise zone act,"
by amending sections 5, 6, 7, 11, and 16 (MCL 207.775, 207.776,
207.777, 207.781, and 207.786), sections 6 and 7 as amended by 2005
PA 338 and section 11 as amended by 2005 PA 339; and to repeal acts
and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. Not more than 60 days after receipt by its clerk of an
application under section 4, the governing body of the local
governmental unit by resolution shall approve the application for a
neighborhood enterprise zone certificate. The clerk shall forward
the
application to the commission assessor
of the local
governmental unit.
Sec. 6. Not later than 60 days after receipt of an approved
application for a homestead facility or a rehabilitated facility,
and not later than 30 days, or if an approved application is
received after October 31, not later than 45 days after receipt of
an
approved application for a new facility, the commission assessor
of the local governmental unit shall determine whether the
homestead facility, new facility, or rehabilitated facility
complies
with the requirements of this act. If the commission
assessor
finds compliance, it he or she shall issue a neighborhood
enterprise zone certificate to the applicant and send a certified
copy
of the certificate to the assessor of the local governmental
unit
and each affected taxing unit. The
assessor shall keep the
certificate
filed on record in his or her office. The commission
shall
maintain a record of all certificates filed. Notice of the
commission's
an assessor's refusal to issue a certificate shall be
sent by certified mail to the same persons.
Sec.
7. (1) The commission assessor
of the local governmental
unit shall not issue a neighborhood enterprise zone certificate for
a new facility unless the new facility meets the requirements of
the definition in section 2(g).
(2)
The commission assessor of
the local governmental unit
shall not issue a neighborhood enterprise zone certificate for a
rehabilitated facility unless the rehabilitated facility meets the
requirements of the definition in section 2(k).
(3)
The commission assessor of
the local governmental unit
shall not issue a neighborhood enterprise zone certificate for a
homestead facility unless the homestead facility meets the
requirements of the definition in section 2(e).
Sec. 11. (1) Upon receipt of a request by certified mail to
the
commission assessor of the
local governmental unit by the
holder of a neighborhood enterprise zone certificate requesting
revocation
of the certificate, the commission assessor by order
shall revoke the certificate.
(2) The certificate shall expire if the owner fails to
complete the filing requirements under section 10 within 2 years of
the date the certificate was issued. The holder of the certificate
may
request in writing to the commission assessor of the local
governmental unit a 1-year automatic extension of the certificate
if the owner has proceeded in good faith with the construction or
rehabilitation of the facility in a manner consistent with the
purposes of this act and the delay in completion or occupancy by an
owner is due to circumstances beyond the control of the holder of
the certificate. Upon request of the governing body of the local
governmental
unit, the commission assessor
of the local
governmental unit shall extend the certificate if the new facility
has not been occupied.
(3) The certificate for a homestead facility or new facility
is automatically revoked if the homestead facility or new facility
is no longer a homestead as that term is defined in section 7a of
the general property tax act, 1893 PA 206, MCL 211.7a. However, if
the owner or any subsequent owner submits a certificate before the
revocation
is effective, the commission assessor
of the local
governmental unit, upon application of the owner, shall rescind the
order of revocation. If the certificate is submitted after
revocation
of the certificate, the commission assessor of the local
governmental unit, upon application of the owner, shall reinstate
the certificate for the remaining period of time for which the
original certificate would have been in effect.
(4) If the owner of the facility fails to make the annual
payment of the neighborhood enterprise zone tax and the ad valorem
property tax on the land under the general property tax act, 1893
PA
206, MCL 211.1 to 211.157 211.155, the commission assessor of
the local governmental unit by order shall revoke the certificate.
However, if payment of these taxes is made before the revocation is
effective,
the commission assessor of
the local governmental unit,
upon application of the owner, shall rescind the order of
revocation. If payment of these taxes and any subsequent ad valorem
property tax due on the facility is made after revocation of the
certificate,
the commission assessor of
the local governmental
unit, upon application of the owner, shall reinstate the
certificate for the remaining period of time for which the original
certificate would have been in effect.
(5) If a homestead facility, a new facility, or a
rehabilitated facility ceases to have as its primary purpose
residential
housing, the commission assessor
of the local
governmental unit by order shall revoke the certificate for that
facility. A new or rehabilitated facility does not cease to be used
for its primary purpose if it is temporarily damaged or destroyed
in whole or in part.
(6) If the governing body of a local governmental unit
determines that a homestead facility, a new facility, or a
rehabilitated facility is not in compliance with any local
construction,
building, or safety codes and notifies the commission
assessor of the local governmental unit by certified mail of the
noncompliance,
the commission assessor of
the local governmental
unit by order shall revoke the certificate.
(7) The revocation shall be effective beginning the December
31 following the date of the order or, if the certificate is
automatically revoked under subsection (3), the December 31
following
the automatic revocation. The commission assessor of the
local governmental unit shall send by certified mail copies of the
order
of revocation to the holder of the certificate , to the local
governmental
unit in which the facility is located, and to the
assessor of that local governmental unit, and to the legislative
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.
Sec. 16. (1) The commission may
promulgate rules it considers
necessary for the administration of this act
pursuant to the
administrative procedures act of 1969, Act No. 306
of the Public
Acts of 1969, being sections 24.201 to 24.328 of the
Michigan
Compiled Laws. Not later than March 15 each year, the assessor of
each local governmental unit that issues a certificate under this
act shall file with the commission a report that contains all of
the following information for the immediately preceding calendar
year:
(a) The number of certificates issued.
(b) The type of each certificate issued.
(c) The date of issuance of each certificate.
(d) The name and address of the holder of each certificate.
(e) The legal description of the real property of the
homestead facility, new facility, or rehabilitated facility for
which each certificate was issued.
(f) The taxable value for each homestead facility or new
facility for which a certificate was issued.
(g) The frozen taxable value for each rehabilitated facility
for which a certificate was issued.
(h) For each certificate that was transferred, all of the
following:
(i) The date of each transfer.
(ii) The name and address of the former holder of the
certificate.
(iii) The name and address of the current holder of the
certificate.
(i) For each certificate that was revoked pursuant to section
11, all of the following:
(i) The reason for the revocation.
(ii) The date of the revocation.
(iii) The name and address of the holder of certificate that was
revoked.
(j) The impact on neighborhood revitalization in the local
governmental unit, including the estimated tax savings for all new
and current certificate holders.
(2) A report required by this section shall be prepared by the
local assessor on a form provided by the commission. The commission
may require that the report be filed in an electronic format
prescribed by the commission.
Enacting section 1. Section 15 of the neighborhood enterprise
zone act, 1992 PA 147, MCL 207.785, is repealed.