Revoked PA 198 Abatements Can Now Be Transferred

SB 500, sponsored by Sen. Tony Stamas (R-Midland), has been signed by the Governor and is now PA PA 122 of 2010.  This new law amends PA 198 (plant rehabilitation and industrial facilities exemptions) to allow for revoked abatements to be transferred.  While many assumed that this has been possible for years, it was discovered that these transfers cannot happen iof the abatement was revoked.  The MEDC pushed for this legislation when he City of Auburn Hills ran up against this problem, and the bill was used to allow for these transfers to occur.

The new law also contained language allowing the City of Gaylord to offer PA 198 abatements to manufacturers specifically for existing facilities that are vacant and not obsolete or blighted.  Usually PA 198’s have to be for new or rehabilitated projects. This is a pilot that was requested by the City of Gaylord and Sen. Stamas, and the League will follow it closely. Afer working closely with Treasury, Sen. Stamas, and others, the League supported the bill. Thanks are due to Sen. Stamas for working with the League on this legislation. 

Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.