January 03, 2006
January 3, 2006
LANSING – Governor Jennifer M. Granholm today signed legislation that will expand the state’s Neighborhood Enterprise Zone (NEZ) Act to make additional housing eligible for the reduced property taxes offered by the act. The legislation will encourage investment and housing development in urban neighborhoods.
"Strong cities are a critical component of a successful state,” Granholm said. “This legislation will strengthen our cities by making home ownership more affordable and creating incentives for families to renovate existing areas that have been abandoned or run down.”
Currently, residential tax abatements in NEZs are only available for newly constructed or refurbished homes. The 3-bill package will make other existing homes, purchased since 1998, eligible as well. The Governor applauded the hard work of several legislators, including Senators Bob Emerson (D-Flint), Buzz Thomas (D-Detroit), and Martha G. Scott (D-Highland Park), and Representatives Bill McConico (D-Detroit) and Virgil Smith, Jr. (D-Detroit).
NEZs have existed in Michigan since 1992 and were designed to improve the housing market in core communities by offering reduced property taxes. Property owners who have a NEZ certificate do not pay standard property taxes, but instead pay a NEZ tax. Typically, a newly-built home located in a NEZ pays one-half the average property tax rate statewide, while a rehabilitated home pays taxes based on the value of the home prior to rehabilitation.
Senate Bill 529 (PA 338 of 2005) was sponsored by Scott; Senate Bill 530 (PA 339 of 2005) was sponsored by Thomas; and House Bill 4540 (PA 340 of 2005) was sponsored by Representative Ed Gaffney (R-Grosse Pointe Farms).
# # #
