HOUSE BILL No. 5439

March 9, 2016, Introduced by Rep. Webber and referred to the Committee on Tax Policy.

 

     A bill to amend 1996 PA 376, entitled

 

"Michigan renaissance zone act,"

 

by amending section 6 (MCL 125.2686), as amended by 2010 PA 277.

 

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) 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), before December 1, 2010, 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.