 | | |
|
|
|
Industrial Facility Exemption
|
|
|
What constitutes obsolescence?
|
|
|
|
Answer:
|
|
The assessor must make a recommendation to the local governing unit that 50% or more of the property to be contained in a plant rehabilitation district is obsolete. "Obsolete industrial property" is defined in MCL 207.552(7) as " industrial property the condition of which is substantially less than an economically efficient functional condition."
"Economically efficient functional condition" is further defined in MCL 207.552(8) as " a state or condition of property the desirability and usefulness of which is not impaired due to changes in design, construction, technology, or improved production processes, or from external influencing factors which make the property less desirable and valuable for continued use."
The following are examples of the restoration of obsolete industrial property from MCL 207.553(6):
Restoration includes major renovation including but not necessarily limited to the improvement of floor loads, correction of deficient or excessive height, new or improved building equipment, including heating, ventilation, and lighting, reducing multistory facilities to 1 or 2 stores, improved structural support including foundations, improved roof structure and cover, floor replacement, improved wall placement, improved exterior and interior appearance of buildings, improvements or modifications of machinery and equipment to improve efficiency, decrease operating costs, or to increase productive capacity, and other physical changes as may be required to restore the industrial property to an economically efficient functional condition, and shall include land and building improvements and other tangible personal property incident to the improvements.
When the planned improvements are less than 10 percent of the true cash value of the industrial property, the improvements are delayed maintenance. (See MCL 207.553(6).
|
|
Printer Friendly
Text Version 
Email Page
