The bill amends the Obsolete Property Rehabilitation Act to enhance the definitions and procedures for rehabilitating obsolete properties in Michigan. Key updates include a clearer definition of "commencement of the rehabilitation," which now starts with the issuance of the first building or trade permit, excluding demolition activities. The definitions of "commercial housing property" and "commercial property" are also revised to broaden the criteria for these categories. Additionally, the bill specifies that rehabilitation must involve improvements that exceed 10% of the property's true cash value, thereby excluding minor enhancements from qualifying as rehabilitation.

Moreover, the bill modifies the process for issuing obsolete property rehabilitation exemption certificates, establishing a minimum duration of one year and a maximum of twelve years for these certificates, with provisions for review and extension by local governmental units. It clarifies that the effective date of the certificate begins upon issuance and mandates annual reporting by local units on the status of each exemption. The bill also sets a deadline for new exemptions, prohibiting any after December 31, 2036, while allowing existing exemptions to remain in effect until they expire. Additionally, it grants the state treasurer the authority to exclude a portion of school operating mills from tax calculations for up to six years to promote economic growth and job creation.

Statutes affected:
Senate Introduced Bill: 125.2782