If enacted, HB1223 would have a significant impact on state law regarding property taxes, especially in communities identified as food deserts. By incentivizing grocery stores owned by underrepresented groups, the bill seeks to foster economic growth in these locales, making them more sustainable. Furthermore, counties and municipalities must waive all fees related to building permits and annual reporting fees for entities that benefit from this abatement, potentially reducing the bureaucratic and financial barriers traditionally faced by new businesses in these areas.
Summary
House Bill 1223, introduced by Rep. Anthony DeLuca, aims to provide tax abatements to grocery stores located in designated food deserts, specifically those operated by minority individuals, women, or persons with disabilities. This bill amends the Property Tax Code to stipulate that any taxing district shall abate taxes on properties housing grocery stores that serve fresh produce but do not sell alcohol. The intent is to encourage the establishment of grocery stores in areas previously classified as food deserts, thereby improving access to fresh food and enhancing local economies.
Contention
Despite the bill's positive intentions, it may face opposition regarding its funding implications and the criteria for determining food deserts. Concerns may arise regarding the assessment process for these areas and whether the tax abatements will sufficiently spur economic growth without compromising local revenues. Additionally, the implementation of the fee waivers may strain local government budgets, which could lead to further debates on the prioritization of funds and resources for community development initiatives.
An Act Concerning The Coordination Of Efforts To Address Food Insecurity And Establish Tax Incentives For The Location Of Grocery Stores In Food Deserts.
Property tax: exemptions; small business property tax exemption; modify application process. Amends secs. 9o, 19 & 30 of 1893 PA 206 (MCL 211.9o et seq.). TIE BAR WITH: HB 4553'23, HB 4554'23
Reducing penalties for the late filing of and the failure to file personal property renditions and the discovery of escaped personal property, requiring filing only an initial statement with county appraiser for personal property, decreasing the penalties for failing to timely remit withholding income taxes of employees by employers, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar year 2024, modifying and prescribing the contents of the revenue neutral rate public hearing notice, providing two prior years' values on the annual valuation notice, allowing for filing of an appraisal by a certified residential real property appraiser for appeal purposes, discontinuing the prohibition of paying taxes under protest after a valuation notice appeal, accounting for adverse influences in the valuation of agricultural land, including properties used for registered agritourism activities as land devoted to agricultural use for purposes of classification, providing a property tax exemption for certain business property operated in competition with property owned or operated by a governmental entity, providing income tax subtraction modifications to permit the carryforward of certain net operating losses for individuals and for the federal work opportunity tax credit and the employee retention credit disallowances, increasing the tax credit amount for adoption expenses and making the credit refundable, increasing the amount of income tax credits available for purchases under the disability employment act from qualified vendors, continuing in existence such credits beyond tax year 2023 and defining qualifying vendors and eligible employees, establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities, clarifying the determination of taxable income of an electing pass-through entity and providing for the passing through of tax credits to electing pass-through entity owners for purposes of the salt parity act, excluding social security payments from household income and expanding eligibility for seniors and disabled veterans related to increased property tax homestead refund claims, providing a sales tax exemption for sales of property and services used in the provision of communications services and excluding manufacturers' coupons from the sales or selling price.
Relating to certain information or guidelines provided by or concerning a property owners' association or concerning subdivisions that are subject to restrictive covenants.