December 6, 2007, Introduced by Senators CLARKE, ALLEN, SANBORN, KUIPERS, GILBERT, RICHARDVILLE, BIRKHOLZ, HUNTER, STAMAS, BROWN, HARDIMAN, KAHN, GEORGE, CLARK-COLEMAN, PAPPAGEORGE, BARCIA, JACOBS, VAN WOERKOM, ANDERSON, THOMAS and SCOTT and referred to the Committee on Commerce and Tourism.
A bill to amend 1996 PA 376, entitled
"Michigan renaissance zone act,"
by amending sections 3, 9, and 10 (MCL 125.2683, 125.2689, and
125.2690), section 3 as amended by 2006 PA 304 and section 10 as
amended by 2005 PA 164, and by adding section 8g.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. As used in this act:
(a) "Agricultural processing facility" means 1 or more
facilities or operations that transform, package, sort, or grade
livestock or livestock products, agricultural commodities, or
plants or plant products, excluding forest products, into goods
that are used for intermediate or final consumption including goods
for nonfood use, and surrounding property.
(b) "Board" means the state administrative board created in
1921 PA 2, MCL 17.1 to 17.3.
(c) "Development plan" means a written plan that addresses the
criteria in section 7 and includes all of the following:
(i) A map of the proposed renaissance zone that indicates the
geographic boundaries, the total area, and the present use and
conditions generally of the land and structures within those
boundaries.
(ii) Evidence of community support and commitment from
residential and business interests.
(iii) A description of the methods proposed to increase economic
opportunity and expansion, facilitate infrastructure improvement,
and identify job training opportunities.
(iv) Current social, economic, and demographic characteristics
of the proposed renaissance zone and anticipated improvements in
education, health, human services, public safety, and employment if
the renaissance zone is created.
(v) Any other information required by the board.
(d) "Elected county executive" means the elected county
executive in a county organized under 1966 PA 293, MCL 45.501 to
45.521, or 1973 PA 139, MCL 45.551 to 45.573.
(e) "Forest products processing facility" means 1 or more
facilities or operations that transform, package, sort, recycle, or
grade forest or paper products into goods that are used for
intermediate or final use or consumption or for the creation of
biomass or alternative fuels through the utilization of forest
products or forest residue, and surrounding property. Forest
products processing facility does not include an existing facility
or operation that is located in this state that relocates to a
renaissance zone for a forest products processing facility. Forest
products processing facility does not include a facility or
operation that engages primarily in retail sales.
(f) "Local governmental unit" means a county, city, village,
or township.
(g) "Person" means an individual, partnership, corporation,
association, limited liability company, governmental entity, or
other legal entity.
(h) "Qualified local governmental unit" means either of the
following:
(i) A county.
(ii) A city, village, or township that contains an eligible
distressed area as defined in section 11 of the state housing
development authority act of 1966, 1966 PA 346, MCL 125.1411.
(i) "Qualified retail business" means 1 or more businesses
that primarily sell goods to customers at retail. Qualified retail
business includes restaurants. Qualified retail business does not
include any of the following:
(i) An adult entertainment business. As used in this
subparagraph, "adult entertainment business" means 1 or both of the
following:
(A) A striptease club or pornographic movie theater whose
business is the commercial sale, dissemination, or distribution of
sexually explicit material, shows, or other exhibitions.
(B) An adult bookstore or adult video store in which 25% or
more of its stock-in-trade, books, magazines, and films for sale,
exhibition, or viewing on-premises are sexually explicit material.
(ii) A facility or operation that is a licensee and has a
topless activity permit under the Michigan liquor control code of
1998, 1998 PA 58, MCL 436.1101 to 436.2303.
(iii) A facility or operation that derives more than 75% of its
sales from the sale of spirits for consumption off premises under
the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1101
to 436.2303.
(iv) A facility or operation that derives more than 75% of its
sales from the sale of tobacco products as defined under section 2
of the tobacco products tax act, 1993 PA 327, MCL 205.422.
(j) (i)
"Recovery zone" means a
tool and die renaissance
recovery zone created in section 8d.
(k) (j)
"Renaissance zone" means
a geographic area designated
under this act.
(l) (k)
"Renewable energy
facility" means a system that creates
energy from a process using residues from agricultural products,
forest products, paper products industries, and food production and
processing; trees and grasses grown specifically to be used as
energy crops; and gaseous fuels produced from solid biomass, animal
wastes, or landfills.
(m) (l) "Residential
rental property" means that term as
defined in section 7ff of the general property tax act, 1893 PA
206, MCL 211.7ff.
(n) "Retail redevelopment zone" means a renaissance zone for
qualified retail businesses designated under section 8g.
(o) (m)
"Review board" means the
renaissance zone review board
created in section 5.
(p) (n)
"Rural area" means an
area that lies outside of the
boundaries of an urban area.
(q) (o)
"Urban area" means an
urbanized area as determined by
the economics and statistics administration, United States bureau
of the census according to the 1990 census.
Sec. 8g. (1) Not later than October 1, 2008, the board of the
Michigan strategic fund defined in section 4 of the Michigan
strategic fund act, 1984 PA 270, MCL 125.2004, may designate not
more than 20 retail redevelopment zones within this state in 1 or
more cities or villages if that city or village or combination of
cities or villages consents to the creation of a retail
redevelopment zone within their boundaries. A retail redevelopment
zone shall be located in an area that is located in a downtown
district under 1975 PA 197, MCL 125.1651 to 125.1681. The board of
the Michigan strategic fund shall designate not less than 6 retail
redevelopment zones in areas located in downtown districts under
1975 PA 197, MCL 125.1651 to 125.1681, that are located in cities
or villages with populations of 25,000 or less.
(2) Each retail redevelopment zone designated under this
section shall be 1 continuous distinct geographic area and contain
not more than 20 separate parcels of property.
(3) The board of the Michigan strategic fund shall consider
all of the following when designating a retail redevelopment zone
for a qualified retail business:
(a) The economic impact on the community in which the retail
redevelopment zone is located.
(b) Whether the goals of a retail redevelopment zone can be
accomplished by locating qualified retail businesses in an existing
renaissance zone designated under section 8 or 8a.
(c) The occupancy rates of the downtown district in the
proposed retail redevelopment zone.
(d) Presence of blighted or functionally obsolete buildings in
the proposed retail redevelopment zone.
(e) The likelihood that development within the retail
redevelopment zone will encourage cluster formation and bring
complimentary businesses to the community.
(f) The likelihood that the proposed retail redevelopment zone
will bring new and diverse retail businesses to the community.
(g) The pool of entrepreneurs that would likely benefit from
creation of the retail redevelopment zone.
(h) The existence of a retail incubator or other community
infrastructure to assist retail entrepreneurs in the proposed
retail redevelopment zone.
(4) The city or village with the assistance of the authority
under 1975 PA 197, MCL 125.1651 to 125.1681, shall report annually
to the Michigan strategic fund on all the following:
(a) The amount of capital investment made in the retail
redevelopment zone.
(b) The number of individuals employed in qualified retail
business in the retail redevelopment zone in the beginning and end
of the reporting period.
(c) Any other conditions or requirements reasonably required
by the Michigan strategic fund.
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, and 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 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) Only property that is located in a retail redevelopment
zone that is owned or leased by a qualified retail business and
business activity conducted in a retail redevelopment zone by a
qualified retail business are eligible for the exemptions,
deductions, or credits described in section 9(1).