Michigan House Bill HB4969

Michigan 2023-2024 Regular Session

• Introduced: 9/12/23
• Refer: 9/12/23
• Report Pass: 9/28/23

Caption

Taxation: specific tax; application of neighborhood enterprise zone tax to certain facilities; modify. Amends sec. 9 of 1992 PA 147 (MCL 207.779). TIE BAR WITH: HB 4966'23

Impact

If enacted, HB 4969 will significantly modify how taxes related to properties in neighborhood enterprise zones are assessed, essentially creating a more favorable tax environment for property owners in these zones. This move is expected to incentivize the development and rehabilitation of properties in economically distressed areas by providing tax relief, which could lead to increased property values and revitalization of neighborhoods. The bill facilitates the growth of new facilities and businesses by leveraging tax benefits that could bolster local economies.

Summary

House Bill 4969 aims to amend the 1992 Neighborhood Enterprise Zone Act in Michigan. Specifically, it modifies Section 9 of the act to refine how the neighborhood enterprise zone tax is levied and assessed on homestead, new, and rehabilitated facilities. The bill seeks to ensure that properties certified under a neighborhood enterprise zone certificate remain exempt from ad valorem real property taxes, thereby promoting investment in qualifying neighborhoods. The changes also introduce specific conditions under which the neighborhood enterprise zone tax may be canceled for a year, emphasizing the ongoing conditions tied to such exemptions.

Contention

While supporters argue that these amendments will revitalize neighborhoods and support economic growth, there may be concerns over the sustainability of tax revenues for local governments. Critics might argue that extending such tax exemptions could lead to reduced funding for essential public services that rely on property tax revenues. Furthermore, the bill's tie-bar with other legislative measures (specifically House Bill 4966 of the 102nd Legislature) suggests that its passage is reliant on broader legislative agreements, which may introduce additional points of contention during discussions.