HOUSE BILL No. 6406

 

September 9, 2008, Introduced by Reps. Tobocman, Sak, Stahl, Jackson and Rick Jones and referred to the Committee on Tax Policy.

 

     A bill to amend 2005 PA 210, entitled

 

"Commercial rehabilitation act,"

 

by amending section 10 (MCL 207.850).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 10. (1) There is levied upon every owner of a qualified

 

facility to which a commercial rehabilitation exemption certificate

 

is issued a specific tax to be known as the commercial

 

rehabilitation tax.

 

     (2) The Except as otherwise provided in subsection (8), the

 

amount of the commercial rehabilitation tax, in each year, shall be

 

determined by adding the results of both of the following

 

calculations:

 

     (a) Multiplying the total mills levied as ad valorem taxes for

 


that year by all taxing units within which the qualified facility

 

is located by the taxable value of the real and personal property

 

of the qualified facility on the December 31 immediately preceding

 

the effective date of the commercial rehabilitation exemption

 

certificate after deducting the taxable valuation of the land and

 

of personal property other than personal property assessed pursuant

 

to sections 8(d) and 14(6) of the general property tax act, 1893 PA

 

206, MCL 211.8 and 211.14, for the tax year immediately preceding

 

the effective date of the commercial rehabilitation exemption

 

certificate.

 

     (b) Multiplying the mills levied for school operating purposes

 

for that year under the revised school code, 1976 PA 451, MCL 380.1

 

to 380.1852, and the state education tax act, 1993 PA 331, MCL

 

211.901 to 211.906, by the taxable value of the real and personal

 

property of the qualified facility, after deducting all of the

 

following:

 

     (i) The taxable value of the land and of the personal property

 

other than personal property assessed pursuant to sections 8(d) and

 

14(6) of the general property tax act, 1893 PA 206, MCL 211.8 and

 

211.14.

 

     (ii) The taxable value used to calculate the tax under

 

subdivision (a).

 

     (3) The commercial rehabilitation tax is an annual tax,

 

payable at the same times, in the same installments, and to the

 

same officer or officers as taxes imposed under the general

 

property tax act, 1893 PA 206, MCL 211.1 to 211.157 211.155, are

 

payable. Except as otherwise provided in this section, the officer

 


or officers shall disburse the commercial rehabilitation tax

 

payments received by the officer or officers each year to and among

 

this state, cities, school districts, counties, and authorities, at

 

the same times and in the same proportions as required by law for

 

the disbursement of taxes collected under the general property tax

 

act, 1893 PA 206, MCL 211.1 to 211.157 211.155.

 

     (4) For intermediate school districts receiving state aid

 

under sections 56, 62, and 81 of the state school aid act of 1979,

 

1979 PA 94, MCL 388.1656, 388.1662, and 388.1681, of the amount of

 

commercial rehabilitation tax that would otherwise be disbursed to

 

an intermediate school district, all or a portion, to be determined

 

on the basis of the tax rates being utilized to compute the amount

 

of state aid, shall be paid to the state treasury to the credit of

 

the state school aid fund established by section 11 of article IX

 

of the state constitution of 1963.

 

     (5) The amount of commercial rehabilitation tax described in

 

subsection subsections (2)(a) and (8)(a) that would otherwise be

 

disbursed to a local school district for school operating purposes,

 

and all of the amount described in subsection subsections (2)(b)

 

and (8)(b), shall be paid instead to the state treasury and

 

credited to the state school aid fund established by section 11 of

 

article IX of the state constitution of 1963.

 

     (6) The officer or officers shall send a copy of the amount of

 

disbursement made to each unit under this section to the commission

 

on a form provided by the commission.

 

     (7) A qualified facility located in a renaissance zone under

 

the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

 


125.2696, is exempt from the commercial rehabilitation tax levied

 

under this act to the extent and for the duration provided pursuant

 

to the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

 

125.2696, except for that portion of the commercial rehabilitation

 

tax attributable to a special assessment or a tax described in

 

section 7ff(2) of the general property tax act, 1893 PA 206, MCL

 

211.7ff. The commercial rehabilitation tax calculated under this

 

subsection shall be disbursed proportionately to the taxing unit or

 

units that levied the special assessment or the tax described in

 

section 7ff(2) of the general property tax act, 1893 PA 206, MCL

 

211.7ff.

 

     (8) The amount of the commercial rehabilitation tax for a

 

qualified retail food establishment, in each year, shall be

 

determined by adding the results of both of the following

 

calculations:

 

     (a) Multiplying the total mills levied as ad valorem taxes for

 

that year by all taxing units within which the qualified facility

 

is located by the taxable value of the real and personal property

 

of the qualified facility on the December 31 immediately preceding

 

the rehabilitation after deducting the taxable valuation of the

 

land and of personal property other than personal property assessed

 

pursuant to sections 8(d) and 14(6) of the general property tax

 

act, 1893 PA 206, MCL 211.8 and 211.14, for the tax year

 

immediately preceding the rehabilitation.

 

     (b) Multiplying the mills levied for school operating purposes

 

for that year under the revised school code, 1976 PA 451, MCL 380.1

 

to 380.1852, and the state education tax act, 1993 PA 331, MCL

 


211.901 to 211.906, by the taxable value of the real and personal

 

property of the qualified retail food establishment, after

 

deducting all of the following:

 

     (i) The taxable value of the land and of the personal property

 

other than personal property assessed pursuant to sections 8(d) and

 

14(6) of the general property tax act, 1893 PA 206, MCL 211.8 and

 

211.14.

 

     (ii) The taxable value used to calculate the tax under

 

subdivision (a).