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HB 5860

Economic development: enterprise zones; HOPE zone exemption; provide for. Amends sec. 21c of 1985 PA 224 (MCL 125.2121c). TIE BAR WITH: HB 5852'26, HB 5856'26

2025-2026 Regular Session Introduced by Tyrone Carter and 11 co-sponsors

Extends Enterprise Zone tax exemptions to properties in Renaissance and HOPE Zones per their acts, with limited exceptions and proportional tax disbursement to local units.

bill electronically reproduced 04/22/2026
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Bill Summary · HB 5860

Bill Summary – Michigan HB 5860 (2025-2026)

Basic information

  • Title: Economic development: enterprise zones; HOPE zone exemption; provide for. Amends sec. 21c of 1985 PA 224 (MCL 125.2121c).
  • Jurisdiction: Michigan
  • Session: 2025-2026
  • Bill Type: Amends the Enterprise Zone Act
  • Introduced by: Rep. Joe Tate
  • Co-sponsors: Morgan Foreman, Tyrone Carter, Amos O'Neal, Helena Scott, Cynthia Neeley, Veronica Paiz, Jennifer Conlin, Regina Weiss, Matt Longjohn, Kimberly Edwards, Stephanie Young
  • Status: Introduced and referred to Committee on Government Operations (as of 2026-04-22)

Purpose and intent

  • The bill modifies the tax exemption provisions for properties located in certain zones designated to promote economic development (renaissance zones and HOPE zones) by aligning the tax exemption terms under the Enterprise Zone Act with those applicable to renaissance zones and HOPE zones.
  • Specifically, it aims to extend or implement property tax exemptions from the Enterprise Zone Act for eligible properties within Renaissance Zones (per the Michigan Renaissance Zone Act) and HOPE Zones (HOPE Zone Act), subject to the duration and limits set forth in those zone acts.
  • The measure also clarifies that exemptions apply to all “specific taxes” under the Enterprise Zone Act, with limited exceptions described in the act (e.g., taxes attributable to certain assessments).

Key provisions and changes

  • Exemption scope: Properties located in a Renaissance Zone or a HOPE Zone are exempt from the Enterprise Zone Act’s specified taxes, to the extent and duration provided by:
    • The Michigan Renaissance Zone Act (1996 PA 376, MCL 125.2681 to 125.2696), or
    • The HOPE Zone Act (Helping Opportunity Prosper Everywhere).
  • Limitations and exclusions:
    • The exemption does not apply to the portion of the specific tax attributable to:
    • a special assessment, or
    • a tax described in section 7ff(2) or (9) of the General Property Tax Act (1893 PA 206, MCL 211.7ff).
  • Disbursement of taxes: The specific tax calculated under the act must be disbursed proportionately to the local taxing units that levied the applicable special assessment or tax described above.
  • Definition clarification: The bill defines “casino” for purposes of this section to include casinos and related properties owned or operated by a casino (and regulated by Michigan’s gaming laws), including affiliated properties such as parking lots, hotels, motels, or retail stores connected to a casino operation.

Who is affected

  • Property owners and developers within Renaissance Zones and HOPE Zones located in Michigan, particularly those seeking enterprise zone tax benefits.
  • Local taxing jurisdictions that receive disbursements from the remaining portion of the tax base (as specified) when exemptions are applied.
  • Local governments and school districts that rely on property tax revenue, given the requirement for proportional disbursement of tax revenue affected by exemptions.

Procedural and timeline notes

  • Trigger for effectiveness: The amendatory act does not take effect unless all of the following bills of the 103rd Legislature are enacted into law:
    • (a) Senate Bill No. ____ (S01123’25) or House Bill 5852 (H01123’25)
    • (b) Senate Bill No. ____ (S05500’25) or House Bill 5856 (H05500’25)
  • Action history: Introduced and referred to the Committee on Government Operations on 2026-04-22.
  • Ties: The bill ties its passage to companion bills HB 5852'26 and HB 5856'26 (as indicated by “TIE BAR WITH”).

Observations

  • The proposal appears to harmonize the Enterprise Zone tax relief with existing Renaissance Zone and HOPE Zone frameworks, potentially expanding net exemptions for properties in those zones while preserving certain tax-forcing exceptions and ensuring proper revenue distribution to local units.
  • It is a fiscal-related, tax-expenditure measure with potential impact on local tax revenues during the exemption period, balanced by definitional clarifications around casino-related properties.

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

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