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HB 5306

AN ACT RELATING TO SPECIAL DEVELOPMENT DISTRICT COMMISSION -- CAPITAL CENTER COMMISSION

2025 Regular Session Introduced by Nathan Biah and 4 co-sponsors

Extends the deadline to issue new commercial rehabilitation exemption certificates from December 31, 2025 to December 31, 2030.

06/25/2025 Effective without Governor's signature
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Bill Summary · HB 5306

Summary — HB 5306 (2025): Commercial Rehabilitation Exemption — Sunset Extension

Bill at a glance

  • Bill number: HB 5306
  • Title: Economic development: commercial redevelopment; commercial rehabilitation exemption certificate; extend sunset.
  • Purpose: Extend the date through which new commercial rehabilitation tax-exemption certificates may be issued under the Commercial Rehabilitation Act (2005 PA 210).
  • Statutory reference amended: 2005 PA 210, section 16 (MCL 207.856).
  • Key change: changes “A new exemption shall not be granted under this act after December 31, 2025” to “after December 31, 2030.” Existing exemptions continue until their scheduled expiration.
  • Introduced: March 14, 2025 (text indicates introduced by Reps. Brian BeGole and VanWoerkom). Metadata lists Mitch Bolinsky as a primary sponsor.
  • Status (from provided record): read first time and referred to committee; bill electronically reproduced 12/02/2025 and referred to Committee on Finance on 12/02/2025.

Key provision

  • Extends the statutory deadline for issuance of new commercial rehabilitation exemption certificates under the Commercial Rehabilitation Act from December 31, 2025 to December 31, 2030.
  • Clarifies that certificates already in effect on the new cutoff date remain valid until the expiration date specified in those certificates (i.e., the extension does not terminate existing exemptions prematurely).

Intent and effect

  • Intent: To allow additional time for property owners and developers to obtain new commercial rehabilitation exemption certificates intended to encourage rehabilitation and redevelopment of commercial properties.
  • Effect: New exemptions may continue to be approved for five additional years (through year-end 2030). Existing exemptions are preserved until their preexisting expiration.

Who is affected

  • Primary: Commercial property owners and developers seeking tax-exemption certificates for qualifying rehabilitation/redevelopment projects under the Commercial Rehabilitation Act.
  • Secondary: Local taxing units (cities, counties, school districts, special districts) that may see altered taxable value roll growth and related short‑term reductions or deferrals in property tax revenues where exemptions are granted.
  • State/local economic development programs and planning entities that use the Act as a tool to attract or finance private redevelopment.

Procedural/timeline notes

  • The bill amends a single subsection of the existing statute (MCL 207.856).
  • As of the provided records, the bill was introduced and referred to committee for further consideration; final enactment would require committee action, passage by the legislature, and the governor’s signature.

Fiscal and policy considerations

  • The bill does not include dollar amounts or a fiscal note in the text provided. Fiscal impacts depend on the number, size, and duration of future certificates approved between 2025 and 2030.
  • Potential trade-offs: extended redevelopment incentives may spur investment and local economic activity, but could reduce near-term property tax revenues for taxing jurisdictions where exemptions are granted.

If you want, I can:
- Locate the fiscal analysis or fiscal impact estimates (if available) for this bill, or
- Prepare a short briefing on how the Commercial Rehabilitation Act’s exemption certificates work (eligibility, typical duration, and common conditions).

Compiled from official sources — confirm details with the bill’s official record.

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