HOUSE BILL No. 4050

 

 

January 18, 2017, Introduced by Reps. Schor, Sabo and Green and referred to the Committee on Tax Policy.

 

     A bill to amend 1992 PA 147, entitled

 

"Neighborhood enterprise zone act,"

 

by amending section 2 (MCL 207.772), as amended by 2010 PA 9.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Commission" means the state tax commission created by

 

1927 PA 360, MCL 209.101 to 209.107.

 

     (b) "Condominium unit" means that portion of a structure

 

intended for separate ownership, intended for residential use, and

 

established pursuant to the condominium act, 1978 PA 59, MCL

 

559.101 to 559.276. Condominium units within a qualified historic

 

building may be held under common ownership.

 

     (c) "Developer" means a person who is the owner of a new

 

facility at the time of construction or of a rehabilitated facility

 

at the time of rehabilitation for which a neighborhood enterprise

zone certificate is applied for or issued.

 

     (d) "Facility" means a homestead facility, a new facility, or

 

a rehabilitated facility.

 

     (e) "Homestead facility" means 1 of the following:

 

     (i) An existing structure, purchased by or transferred to an

 

owner after December 31, 1996, that has as its primary purpose

 

residential housing consisting of 1 or 2 units, 1 of which is

 

occupied by an owner as his or her principal residence and that is

 

located within a subdivision platted pursuant to state law before

 

January 1, 1968 other than an existing structure for which a

 

certificate will or has been issued after December 31, 2006 in a

 

city with a population of 750,000 or more, is located within a

 

subdivision platted pursuant to state law before January 1, 1968.

 

     (ii) An existing structure that has as its primary purpose

 

residential housing consisting of 1 or 2 units, 1 of which is

 

occupied by an owner as his or her principal residence that is

 

located in a subdivision platted after January 1, 1999 and is

 

located in a county with a population of more than 400,000 and less

 

than 500,000 according to the most recent decennial census and is

 

located in a city with a population of more than 100,000 and less

 

than 125,000 according to the most recent decennial census.

 

     (f) "Local governmental unit" means a qualified local

 

governmental unit as that term is defined under section 2 of the

 

obsolete property rehabilitation act, 2000 PA 146, MCL 125.2782, or

 

a county seat.

 

     (g) "New facility" means 1 or both of the following:

 

     (i) A new structure or a portion of a new structure that has

as its primary purpose residential housing consisting of 1 or 2

 

units, 1 of which is or will be occupied by an owner as his or her

 

principal residence. New facility includes a model home or a model

 

condominium unit. New facility includes a new individual

 

condominium unit, in a structure with 1 or more condominium units,

 

that has as its primary purpose residential housing and that is or

 

will be occupied by an owner as his or her principal residence.

 

Except as provided in subparagraph (ii), new facility does not

 

include apartments.

 

     (ii) A new structure or a portion of a new structure that

 

meets all of the following:

 

     (A) Is rented or leased or is available for rent or lease.

 

     (B) Is a mixed use building or located in a mixed use building

 

that contains retail business space on the street level floor.

 

     (C) Is located in a qualified downtown revitalization

 

district.

 

     (h) "Neighborhood enterprise zone certificate" or

 

"certificate" means a certificate issued pursuant to sections 4, 5,

 

and 6.

 

     (i) "Owner" means the record title holder of, or the vendee of

 

the original land contract pertaining to, a new facility, a

 

homestead facility, or a rehabilitated facility for which a

 

neighborhood enterprise zone certificate is applied for or issued.

 

     (j) "Qualified assessing authority" means 1 of the following:

 

     (i) For a facility other than a homestead facility, the

 

commission.

 

     (ii) For a homestead facility, the assessor of the local

governmental unit in which the homestead facility is located.

 

     (k) "Qualified downtown revitalization district" means an area

 

located within 1 or more of the following:

 

     (i) The boundaries of a downtown district as defined in

 

section 1 of 1975 PA 197, MCL 125.1651.

 

     (ii) The boundaries of a principal shopping district or a

 

business improvement district as defined in section 1 of 1961 PA

 

120, MCL 125.981.

 

     (iii) The boundaries of the local governmental unit in an area

 

that is zoned and primarily used for business as determined by the

 

local governmental unit.

 

     (l) "Qualified historic building" means a property within a

 

neighborhood enterprise zone that has been designated a historic

 

resource as defined under section 266 of the income tax act of

 

1967, 1967 PA 281, MCL 206.266.

 

     (m) "Rehabilitated facility" means an existing structure or a

 

portion of an existing structure with a current true cash value of

 

$80,000.00 or less per unit that has or will have as its primary

 

purpose residential housing, consisting of 1 to 8 units, the owner

 

of which proposes improvements that if done by a licensed

 

contractor would cost in excess of $5,000.00 per owner-occupied

 

unit or 50% of the true cash value, whichever is less, or $7,500.00

 

per nonowner-occupied unit or 50% of the true cash value, whichever

 

is less, or the owner proposes improvements that would be done by

 

the owner and not a licensed contractor and the cost of the

 

materials would be in excess of $3,000.00 per owner-occupied unit

 

or $4,500.00 per nonowner-occupied unit and will bring the

structure into conformance with minimum local building code

 

standards for occupancy or improve the livability of the units

 

while meeting minimum local building code standards. Rehabilitated

 

facility also includes an individual condominium unit, in a

 

structure with 1 or more condominium units that has as its primary

 

purpose residential housing, the owner of which proposes the above

 

described improvements. Rehabilitated facility also includes

 

existing or proposed condominium units in a qualified historic

 

building with 1 or more existing or proposed condominium units.

 

Rehabilitated facility does not include a facility rehabilitated

 

with the proceeds of an insurance policy for property or casualty

 

loss. A qualified historic building may contain multiple

 

rehabilitated facilities.