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Project Commencement

Project Commencement

State Tax Commission Policy Statement for Obsolete Property Rehabilitation Act (OPRA) (PA 146 of 2000, as amended) Applications

Adopted by the State Tax Commission at its March 22, 2006, meeting.

Effective immediately:

  1. As provided by Public Act 146 of 2000, Section 4(3), the clerk of the qualified local unit will request that the assessor determine the taxable value of property that was owned by a qualified local governmental unit on the effective date of this act, and subsequently conveyed to a private owner. This determination shall be made prior to the hearing on the application for an Obsolete Property Rehabilitation Act (OPRA) exemption certificate held pursuant to subsection.

    Effective immediately, all OPRA applications submitted to the STC are required to indicate the prior year’s actual taxable value, rather than a zero ($0) taxable value based on previous local governmental ownership. An OPRA exemption will not be issued or frozen at a zero taxable value.

  2. As provided by Public Act 146 of 2000, Section 8(2), the legislative body of the qualified local governmental unit shall not approve an application for an OPRA exemption certificate unless the applicant complies with all of the following requirements:

In part:

(a) the commencement of the rehabilitation of the facility does not occur before the establishment of the OPRA district.

(d) the applicant states, in writing, that the rehabilitation of the facility would not be undertaken without the applicant’s receipt of the exemption certificate.

Subsections (a) and (d) were addressed by the STC and effective immediately, OPRA applicants may begin their projects after the establishment of the OPRA district by the local governmental unit and still meet the statement requirement of Section 8(2)(d).