SB 721

Act No. 34
Public Acts of 2026
Approved by the Governor
July 21, 2026
Filed with the Secretary of State
July 22, 2026
EFFECTIVE
DATE: July 22, 2026
state of michigan
103rd Legislature
Regular session of 2026
Introduced by Senator Moss
ENROLLED SENATE BILL No. 721
AN ACT to amend 1978 PA 255,
entitled �An act to provide for the establishment of commercial redevelopment
districts in local governmental units; to provide for the exemption from
certain taxes; to levy and collect a specific tax upon the owners of certain
facilities; to provide for the disposition of the tax; to provide for the
obtaining and transferring of an exemption certificate and to prescribe the
contents of those certificates; to prescribe the powers and duties of the state
tax commission and certain officers of local governmental units; and to provide
remedies and penalties,� by amending sections 9, 12a, 16, and 18 (MCL 207.659,
207.662a, 207.666, and 207.668), section 9 as amended by 1993 PA 340,
section 12a as added by 2008 PA 227, and section 18 as amended by 2020 PA 218.
The People of the State of
Michigan enact:
Sec.
9. (1) A facility for which a commercial facilities exemption certificate is in
effect, but not the land on which the facility is located or to be located, or
personal property other than personal property assessed under section 14(6) of
the general property tax act, 1893 PA 206, MCL 211.14, for the period on and
after the effective date of the certificate and continuing so long as the
commercial facilities exemption certificate is in force, is exempt from ad
valorem property taxes. A lessee, occupant, user, or person in possession of
the facility for the same period is exempt from ad valorem taxes imposed under 1953
PA 189, MCL 211.181 to 211.182.
(2) Unless earlier revoked as provided in section 14, a
commercial facilities exemption certificate remains in force and effect for a
period to be determined by the legislative body of the local governmental unit.
The certificate may be issued for a period of at least 1 year, but not to
exceed 12 years. If the number of years determined is less than 12, subject to
subsection (3), the certificate may be reviewed by the legislative body of the
local governmental unit and extended. The total amount of time determined for
the certificate including any extensions must not exceed 12 years after the
completion of the facility. The certificate commences on its effective date and
ends on December 30 of the last year of the number of years determined. The
date of issuance of a certificate of occupancy, if required by appropriate
authority, is considered the date of completion of the facility.
(3) If the number of years determined by the legislative body
of the local governmental unit for the period a certificate remains in force is
less than 12 years, the review of the certificate for the purpose of
determining an extension under subsection (2) must be based on factors,
criteria, and objectives that are placed in writing, approved when the
certificate is approved by the legislative body of the local governmental unit,
and sent to the applicant and commission.
(4)
If an error or mistake in an application for a commercial facilities exemption
certificate is discovered after the local governmental unit has issued a
certificate for the application, an applicant may submit an amended application
in the same manner as an original application under this act that corrects the
error or mistake. The legislative body of the local governmental unit may
approve or deny the amended application. If the local governmental unit
previously issued a certificate for the original application and approves an
amended application under this subsection, the local governmental unit shall
issue an amended certificate for the amended application pursuant to section 8
with the same effective date as the original certificate.
Sec.
12a. (1) After the granting of a new commercial facilities exemption
certificate under section 8 for a new facility or a replacement facility, the
state treasurer may, for a period not to exceed 6 years, exclude up to 1/2 of
the number of mills levied under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906, from the specific tax calculation on the facility under
section 12(3) if the state treasurer determines that reducing the number of
mills used to calculate the specific tax under section 12(3) is necessary to
reduce unemployment, promote economic growth, and increase capital investment
in qualified local governmental units.
(2) The state treasurer shall not grant more than 45
exclusions under this section each year.
Sec.
16. Each governmental unit granting a commercial redevelopment exemption not
later than June 15 each year shall report to the commission on the status of
each exemption, including the current value of the property to which the
exemption pertains, the value on which the commercial facilities tax is based,
and a current estimate of the number of jobs retained or created by the
exemption.
Sec.
18. A new exemption must not be granted under this act after December 31, 2035,
but an exemption in effect on that date continues until the expiration of the
exemption certificate.
This act is ordered to take
immediate effect.
Secretary of the Senate
Clerk of the House of
Representatives
Approved___________________________________________
____________________________________________________
Governor