This bill amends Michigan's Obsolete Property Rehabilitation Act to clarify how property taxes are calculated and distributed for buildings that have been rehabilitated. It establishes a specific annual tax on owners of these properties, with the collected funds directed to the state school aid fund rather than local taxing units. The legislation also creates exemptions for facilities located in Renaissance or HOPE zones and allows local governments to grant temporary tax relief to qualified start-up businesses operating in rehabilitated buildings.
HB 5855 amends Michigan's City Utility Users Tax Act to create exemptions for specific businesses and locations. The bill allows qualified start-up businesses to be exempt from utility taxes for up to five years if they first receive a tax credit and receive approval from their city council. Additionally, it extends tax exemptions to businesses operating within designated Renaissance zones and HOPE zones, while explicitly excluding casinos from these benefits. To claim the start-up exemption, businesses must file an affidavit by September 1 and provide proof of their prior tax credit eligibility.
HB 5858 amends Michigan law to clarify how specific taxes and administrative fees are collected from owners of industrial facilities that have received tax exemption certificates. The bill establishes rules for distributing these payments, directing funds to the state treasury to support school aid rather than local districts in most cases, while allowing certain districts to retain funds under specific conditions. It also outlines procedures for calculating tax shares and includes provisions for districts that may or may not receive state aid in future fiscal years. This legislation directly affects property owners of industrial facilities, local and intermediate school districts, and the state treasury.
This bill directs a specific portion of Michigan's individual income tax revenue to the Workforce Development HOPE Zone Fund. The funds are designated for employees working within designated HOPE zones and are intended to be distributed to qualified workforce development organizations through formal agreements. The legislation defines key terms such as "HOPE zone" and "qualified workforce development organization" by referencing existing state laws. The bill will only take effect if it is passed alongside a companion bill, HB 5852.
This bill amends Michigan's Commercial Redevelopment Act to exempt new, replacement, or restored facilities located in designated HOPE zones from the commercial facilities tax. By removing this specific tax liability for properties in these zones, the legislation aims to provide financial relief to businesses undergoing redevelopment in areas identified for economic growth. The measure is tied to companion bills and will only take effect if all related legislation is passed by the legislature.
This bill modifies Michigan's Enterprise Zone Act to clarify tax exemptions for properties located in Renaissance or HOPE zones, ensuring these areas receive specific tax relief. It explicitly states that casinos and their associated facilities, such as hotels and retail stores, are excluded from these exemptions. The legislation also outlines how any remaining specific taxes not covered by the exemption must be distributed among the local taxing units that originally imposed them. This change is contingent upon the passage of two related companion bills, HB 5852 and HB 5856, before it can take effect.
SB 995 proposes to create a new state tax credit for Michigan employers starting in 2026, allowing them to reduce their income tax liability by 50% of the federal Work Opportunity Tax Credit they would have received. This credit is available only to businesses that hire Michigan residents who are certified by the state unemployment agency as members of specific targeted groups facing employment barriers. The bill specifies that any unused portion of the credit cannot be refunded if it exceeds the employer's tax bill, and it includes provisions for flow-through entities to claim credits based on their share of business income.
This bill modifies Michigan's sales tax exemptions for data center equipment, requiring that these tax breaks continue only if specific job creation targets are met. For existing data centers, the exemption applies after 2022 only if at least 400 related jobs are created, and after 2026 only if at least 1,000 such jobs are established. For new enterprise data centers, the bill mandates that owners receive a certificate from the Michigan Strategic Fund confirming they plan to meet certain criteria within six years before they can claim the tax exemption. Additionally, the law requires these facilities to report annual data on employment and investments to the fund and achieve specific green building standards within three years of opening.
SB 988 modifies the deadline for property owners in Michigan to appeal a denial of a poverty-based tax exemption. Currently, individuals must file such an appeal within 30 days, but this bill extends that window to 35 days. The change applies specifically to claims rejected by the July or December board of review and allows appeals to be filed with the Michigan Tax Tribunal. The legislation also clarifies that appeals sent via the United States Postal Service are considered timely if they bear a postmark on or before the new deadline. This adjustment directly affects low-income property owners who seek relief from property taxes based on financial hardship.
This bill amends Michigan's Technology Park Development Act to exempt facilities located in HOPE zones from the technology park facilities tax. The exemption applies for the same duration and to the same extent as existing exemptions provided under the Helping Opportunity Prosper Everywhere (HOPE) Zone Act. The legislation is tied to companion bills that must also be enacted for this change to take effect.
