MI SB0295

Local legislative bodies must make a separate finding and include a statement in their resolution if exempted property exceeds 5% of the qualified local governmental unit's taxable value, certifying that exceeding this amount will not substantially impede operations or impair financial soundness of affected taxing units.

Applicants for obsolete property exemption certificates must comply with requirements including: obtaining building permits before district establishment (with limited exceptions), demonstrating the project will increase commercial activity or employment, stating rehabilitation would not occur without the exemption, and being current on all related taxes.

Beginning July 1, 2009, applicants must provide written statements that they will not knowingly hire or contract with entities employing undocumented workers and will make good faith efforts to employ Michigan residents and contract with Michigan firms and suppliers.

Beginning July 1, 2009, exemption certificates must include remedy provisions allowing for revocation and potential repayment of benefits if applicants substantially violate the employment and contracting requirements.

Applicants must report annually to the Michigan strategic fund board detailing Michigan residents employed in new jobs, total new jobs created, and details of good faith efforts to meet the hiring and contracting requirements; the Attorney General is responsible for enforcement.