Grand Rapids Downtown Condos

City of Grand Rapids Ren Zone info.

MICHIGAN PUBLIC ACT 376 OF 1996, AS AMENDED

Updated January 28, 2008

1. What are the benefits of the Renaissance Zone program for eligible businesses and residents?

a) City and state income / MBT tax exemptions (prior to 2008, SBT exemptions)

b) Property tax exemptions (except for public school bonded debt millages)

c) Expiration of Renaissance Zone exemptions

I. For original section of Grand Rapids Renaissance Zone (“GRRZ”), established in 1997, benefits begin to expire in 2009. In 2009, 75% of state and local taxes will be exempted for eligible businesses & residents. In 2010, 50% will be exempted and in 2011, 25% will be exempted. Businesses and residents pay 100% of state and local taxes in 2012 and beyond. Most GRRZ properties are in the original section of the GRRZ.

II. For properties in the expansion sections of the GRRZ, benefits begin to expire in 2015. In 2015, 75% of state and local taxes will be exempted for eligible businesses & residents. In 2016, 50% will be exempted and in 2017, 25% will be exempted. Businesses and residents pay 100% of state and local taxes in 2018 and beyond. The expansion portion of the Ren Zone includes certain, but not all, properties in these areas – 47 to 86 Monroe Center, N.W.; 1919 to 1955 Boston Street, S.E.; 520/620 Watson Street, S.W.; 525/617 Butterworth St. S.W.; 2000 Oak Industrial Drive; 310 28th Street, S.E.

III. For certain real and personal property parcels for which Grand Rapids City Commission approved benefit extensions, Renaissance Zone benefits expire according to the schedule approved.

2. Renaissance Zone exemption eligibility requirements

a) Timely filing of personal property return and Renaissance Zone form (businesses only.)

b) Timely filing and payment of any state and city income / Michigan Business Tax taxes. The filing of income tax / MBT returns is required even when no tax is due.

c) Timely filing and payment of state and city employee withholding taxes

d) Timely payment of any property taxes

e) Additional requirement for residential rental property. Residential rental property is defined as real property having one or more dwelling units but less than 100% homestead / principal residence exemption marked on the property record.

I. Pass annual property inspections by City Code Compliance Officers. Property must be in substantial compliance with all applicable state and local building, housing, and zoning codes, ordinances, and laws. Inspections occur shortly before or after December 31 each year.

II. Maintain a current and valid certificate of occupancy for the property.

3. Extension of Exemption Period for Existing Renaissance Zone Parcels - requests for extension of Renaissance Zone state and local tax exemptions will be considered subject to evaluation criteria in Grand Rapids City Commission Policy 900-48. To see this policy, go to the City of Grand Rapids’ website at www.grcity.us, then in the SEARCH box on the upper left side of the home page type, “City Commission Policy 900-48.” Contact Economic Development Director Kara Wood at 616-456-3196 or kwood@grcity.us for direction prior to submitting your request for extension of the Renaissance Zone exemptions.

4. Available resources:

a) City website: http://grcity.us – Go to “Property Tax Info” on left side of home page to look at property tax history, to see if a property is in the Grand Rapids Renaissance Zone, and to look at parcel records to determine if dwelling units are marked on the parcel. For business-related Renaissance Zone information, click on “Departments” then “Economic Development.”

b) Michigan Economic Development Corporation website: http://michigananadvantage.org. Type “Renaissance Zones” in the SEARCH box on the upper right corner of the home page to find general Renaissance Zone information including simple maps of the Grand Rapids Renaissance Zone.

c) Michigan Compiled Laws website: http://legislature.mi.gov- To look up the Renaissance Zone Act (Michigan Public Act 376 of 1996, as amended) or to look up the Ren Zone Act ineligibility section specifically (MCL number 125.2690.)