PA 198: TERMINATION OF DISTRICT

House Bill 5415 (Substitute H-1)

Sponsor:  Rep. Gene DeRossett

Committee:  Commerce

Complete to 6-30-04

A SUMMARY OF HOUSE BILL 5415 AS REPORTED FROM COMMMITEE

The bill would amend the Plant Rehabilitation and Industrial Development Act (commonly referred to as PA 198) to allow a local unit of government, by resolution of its legislative body, to terminate a plant rehabilitation district or industrial development district if no tax abatement certificates are in effect within the district on the date of the termination resolution.

Before acting on such a resolution, the local unit would have to give 14 days’ written notice by certified mail to the owners of all real property within the relevant district and hold a public hearing on the termination of the district at which property owners, taxpayers, and other residents of the local unit could appear and be heard. 

(The act being amended allows the creation of districts in which a specific tax can be levied in lieu of property taxes to provide property tax reductions for industrial facilities.)

MCL 207.554

FISCAL IMPACT:

As written, the bill would have no fiscal impact.

POSITIONS:

Among those who indicated support to the House Committee on Commerce were the Washtenaw Development Council; the Oakland County Economic Developers Group (OCED); the Southeast Michigan Council of Governments (SEMCOG); the Michigan Economic Development Corporation (MEDC); the Michigan Townships Association; and the Michigan Municipal League.  (6-29-04)

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Rebecca Ross

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.