The City of Morenci established two Commercial Rehabilitation Districts in 2013. These districts allow business in those areas to apply for a Commercial Rehabilitation Certificate which abates new taxes due to upgrades for a period ranging from 1 year to not more than 10 years.
What is a Commercial Rehabilitation District?
The Commercial Rehabilitation Act, PA 210 of 2005, as amended provides a tax reduction for property of which the primary purpose and use is the operation of a commercial business enterprise, multifamily residential or qualified retail food establishments. Types of commercial business enterprises include office, engineering, research and development, warehousing, parts distribution, retail sales, and other commercial activities. Multifamily residential is housing that consists of 5 or more units. Qualified retail food establishments are primarily retail supermarkets, grocery stores, produce markets or delicatessens that offer fresh USDA inspected meat and poultry, fresh fruits and vegetables, and dairy products for sale. Applying for a Commercial Rehabilitation Exemption involves a multi-step process.
First, completed applications are sent to the local governmental unit for review and approval. Qualified retail food establishment applicants must also submit an additional application at that time. After the local government finishes their processing of the applications, they are forwarded to the State Tax Commission for further review and approval.
How do I file an application for a Commercial Rehabilitation Exemption Certificate?
Applications for Commercial Rehabilitation Exemption Certificates are filed with Morenci City Hall by the owner of the property.
The application can be found here: http://www.michigan.gov/documents/taxes/4507_246308_7.pdf
The application must be accompanied by the following required documents:
- A general description of the facility (including year built, original use, most recent use, number of stories, square footage);
- A general description of the rehabilitated facility’s proposed use;
- A description of the general nature and extent of the rehabilitation to be undertaken;
- A descriptive list of the fixed building equipment that will be a part of the rehabilitated facility;
- A time schedule for undertaking and completing the facility’s rehabilitation;
- A statement of economic advantages expected from the exemption;
- A legal description of the property outlined in the application;
- If applicable, a completed Form 4753, Commercial Rehabilitation Exemption Certification for Qualified Retail Food Establishments. This form can be found here:http://www.michigan.gov/documents/taxes/4753_283147_7.pdf
Morenci City Council will review the application and, if all requirements are met, will forward the application to the State Tax Commission.