Economic development: downtown development authorities; exemption from real estate transfer taxes; modify to reflect repeal of the state real estate transfer tax act. Amends sec. 228a of 2018 PA 57 (MCL 125.4228a). TIE BAR WITH: HB 5811'24
Impact
The amendment outlined in HB 5813 is expected to have a significant impact on economic development initiatives within Michigan. In establishing clearer tax exemption guidelines, the bill is designed to support downtown development authorities in fostering local growth and revitalization efforts. By ensuring these authorities can operate tax-free on their earnings and property, the bill incentivizes investment in urban centers, potentially leading to increased property values and economic activity in these areas.
Summary
House Bill 5813 aims to amend the Recodified Tax Increment Financing Act by modifying the existing tax exemption provisions for downtown development authorities. Specifically, the bill seeks to clarify that the authorities will be exempt from all taxation on earnings and property, reinforcing the existing framework by rectifying an inconsistency with the state's real estate transfer tax regulations. It is important to note that this bill is tied to the enactment of Senate Bill No. ____ and House Bill No. 5811, indicating a legislative effort to align multiple pieces of new legislation affecting local economic strategies.
Contention
As with many legislative changes, HB 5813 may face scrutiny from various stakeholders. Supporters of the bill might argue that the tax exemptions are crucial for stimulating local economies and attracting businesses. However, opponents may raise concerns regarding potential losses in state revenue and the implications for fairness in taxation among different sectors. The key point of contention will likely revolve around balancing the needs for economic development with the responsibilities of tax equity and fiscal accountability within the state.
Probate: other; prima facie evidence that transfer is made for value; modify to reflect repeal of the state real estate transfer tax act. Amends sec. 3912 of 1998 PA 386 (MCL 700.3912). TIE BAR WITH: HB 5811'24
Taxation: administration; settlement process; modify to reflect repeal of the state real estate transfer tax act. Amends sec. 21 of 1941 PA 122 (MCL 205.21). TIE BAR WITH: HB 5811'24
Economic development: downtown development authorities; certain requirements for initial assessed value; modify. Amends sec. 201 of 2018 PA 57 (MCL 125.4201).
Economic development: downtown development authorities; certain requirements for initial assessed value; modify. Amends sec. 201 of 2018 PA 57 (MCL 125.4201).
Economic development: tax increment financing; definition of other protected obligation; modify and expand. Amends sec. 301 of 2018 PA 57 (MCL 125.4301).
Economic development: tax increment financing; definition of other protected obligation; modify and expand. Amends sec. 301 of 2018 PA 57 (MCL 125.4301).
Economic development: brownfield redevelopment authority; brownfield redevelopment financing act; amend to exempt museum authorities. Amends sec. 2 of 1996 PA 381 (MCL 125.2652).