NEIGHBORHOOD ENTERPRISE ZONE FACILITIES TAX

TAX OUTLINE

TAX DESCRIPTIONS

NEIGHBORHOOD ENTERPRISE ZONE FACILITIES
LEGAL CITATION:	M.C.L. 207.771 et seq.; 1992 PA 147.

YEAR ADOPTED:	1992

BASIS OF TAX:	In lieu of general property taxation for up to 12 years after rehabilitation or completion of facility granted exemption. Partial exemption for facility located in a renaissance zone.

MEASURE OF TAX (BASE):	New facility: state equalized value of facility, excluding land. Rehabilitated facility: state equalized value of facility in year prior to granting of exemption certificate, excluding land. For last three years of exemption, state equalized value of facility, excluding land. Homestead facility: state equalized value of facility, excluding land.

RATE:	New facility - principal residence: 1/2 of the state average tax rate in the immediately preceding calendar year on other principal residence or qualified agricultural property. New facility - non-principal residence: 1/2 of the state average tax rate in the immediately preceding calendar year on other commercial, industrial, and utility property. Rehabilitated facility: total property tax rate levied under General Property Tax, varies by local unit. Homestead facility: total property tax rate levied under General Property Tax less the sum of one-half of the operating tax rate levied by the local unit in which the facility is located and one-half of the operating tax rate levied by the county in which the facility is located. Two Years before Expiration of Exemption New, rehabilitated, and homestead facilities: total property tax rate levied under General Property Tax less the sum of three-eighths of the operating tax rate levied by the local unit in which the facility is located and three-eighths of the operating tax rate levied by the county in which the facility is located. One Year before Expiration of Exemption New, rehabilitated, and homestead facilities: total property tax rate levied under General Property Tax less the sum of one-fourth of the operating tax rate levied by the local unit in which the facility is located and one-fourth of the operating tax rate levied by the county in which the facility is located. Year of Expiration of Exemption New, rehabilitated, and homestead facilities: total property tax rate levied under General Property Tax less the sum of one-eighth of the operating tax rate levied by the local unit in which the facility is located and one-eighth of the operating tax rate levied by the county in which the facility is located.

ADMINISTRATION:	Same as General Property Tax.

REPORT AND PAYMENT:	Same as General Property Tax.

DISPOSITION:	Same as Industrial Facilities Tax.

Neighborhood Enterprise Zone Facility Tax Law Changes

Last Updated July 21, 2008