- Home
- Business
- Business Resources
- Tax Abatements
Tax Abatements
The City of Bay City grants tax incentives for local investors through programs which particularly focus on renovation, rehabilitation and redevelopment, such as these.
Property tax incentives are available to eligible businesses to renovate or expand aging manufacturing plants or build new ones. Real property taxes can be reduced for up to 12 years. For a new plant or obsolete plant, the City of Bay City can reduce the local millage by half, and the Michigan Economic Development Corporation is able to abate the 6-mill statewide education tax. Abatement includes all millage, state and local. Eligible projects include manufacturing, mining, research and development, wholesale and trade, and office operations, but not retail businesses.
For more information, view the following documents:
The Obsolete Property Rehabilitation Act adds another avenue for property owners, buyers, developers and lenders to promote redevelopment projects. The act provides an exemption from ad valorem property taxes to commercial property and commercial housing property if an obsolete property rehabilitation district has been established. Buildings and improvements within the districts are eligible for exemption from ad valorem property taxes from one to 12 years. The property's value is frozen at its pre-habilitation value and a 60% reduction in taxes for the additional investment.
Properties eligible for obsolete property exemption certificates are those that meet the definition of obsolescence, which means the property must be a "facility" (contaminated), "blighted" or "functionally obsolete."
Rehabilitation expenses must exceed 10% of the true cash value of the property.
For more information, view the following documents:
Michigan's Brownfield law is designed to encourage and assist developers who want to return property to productive use more quickly and at a lower cost than before, while still protecting human health and natural resources. Owners and operators of contaminated sites are no longer required to pay for cleanup actions unless they caused the contamination. Flexible cleanup standards give developers the option of proposing a solution to historical contamination based on future use of the property.
The Brownfield tax increment-financing feature has been expanded to allow for cleanup of contamination and for asbestos and lead abatement, and certain infrastructure improvements supporting the project. The Bay City Brownfield Redevelopment Authority may capture all new taxes except debt millage and millage not captured by a preexisting entity. A project "work plan" must be prepared for any environmental remediation activities and approved by the Michigan Department of Environmental Quality. Additionally, a "work plan" must be prepared for infrastructure improvements, lead and asbestos abatement, demolition and site preparation that is not a response activity and approved by the Michigan Economic Growth Authority.
The City established its Brownfield Redevelopment Authority (BRA) on November 1, 1999 pursuant to the Brownfield Redevelopment Financing Act, Public Act 381 of 1996, as amended. The Authority and the City Commission are responsible for review and adopting Brownfield Redevelopment Plans to promote the revitalization of properties that are functionally obsolete, blighted or environmentally distressed throughout the City.
In 2011, the BRA, Mayor and City Commission approved 4 Brownfield Redevelopment Plans that upon completion of construction will facilitate more than $160.1 million in property investment, 897,300 square feet of new or renovated commercial and industrial space, an excess of 1,000 new jobs, and more than 150 new housing units.
The staff representative is Sara Dimitroff, who can be reached by phone at 989-894-8159.
For more information, view the following documents:
Industrial Property Tax
Property tax incentives are available to eligible businesses to renovate or expand aging manufacturing plants or build new ones. Real property taxes can be reduced for up to 12 years. For a new plant or obsolete plant, the City of Bay City can reduce the local millage by half, and the Michigan Economic Development Corporation is able to abate the 6-mill statewide education tax. Abatement includes all millage, state and local. Eligible projects include manufacturing, mining, research and development, wholesale and trade, and office operations, but not retail businesses.
For more information, view the following documents:
- Application for Industrial Facilities Tax Exemption Certificate (PDF)
- Plant Rehabilitation and Industrial Development Districts Law (PDF)
Obsolete Property Rehabilitation Act
The Obsolete Property Rehabilitation Act adds another avenue for property owners, buyers, developers and lenders to promote redevelopment projects. The act provides an exemption from ad valorem property taxes to commercial property and commercial housing property if an obsolete property rehabilitation district has been established. Buildings and improvements within the districts are eligible for exemption from ad valorem property taxes from one to 12 years. The property's value is frozen at its pre-habilitation value and a 60% reduction in taxes for the additional investment.
Properties eligible for obsolete property exemption certificates are those that meet the definition of obsolescence, which means the property must be a "facility" (contaminated), "blighted" or "functionally obsolete."
Rehabilitation expenses must exceed 10% of the true cash value of the property.
For more information, view the following documents:
- Application for Obsolete Property Rehabilitation Exemption Certificate (PDF)
- Obsolete Property Rehabilitation Act (PDF)
Brownfield Redevelopment Act
Michigan's Brownfield law is designed to encourage and assist developers who want to return property to productive use more quickly and at a lower cost than before, while still protecting human health and natural resources. Owners and operators of contaminated sites are no longer required to pay for cleanup actions unless they caused the contamination. Flexible cleanup standards give developers the option of proposing a solution to historical contamination based on future use of the property.
The Brownfield tax increment-financing feature has been expanded to allow for cleanup of contamination and for asbestos and lead abatement, and certain infrastructure improvements supporting the project. The Bay City Brownfield Redevelopment Authority may capture all new taxes except debt millage and millage not captured by a preexisting entity. A project "work plan" must be prepared for any environmental remediation activities and approved by the Michigan Department of Environmental Quality. Additionally, a "work plan" must be prepared for infrastructure improvements, lead and asbestos abatement, demolition and site preparation that is not a response activity and approved by the Michigan Economic Growth Authority.
The City established its Brownfield Redevelopment Authority (BRA) on November 1, 1999 pursuant to the Brownfield Redevelopment Financing Act, Public Act 381 of 1996, as amended. The Authority and the City Commission are responsible for review and adopting Brownfield Redevelopment Plans to promote the revitalization of properties that are functionally obsolete, blighted or environmentally distressed throughout the City.
In 2011, the BRA, Mayor and City Commission approved 4 Brownfield Redevelopment Plans that upon completion of construction will facilitate more than $160.1 million in property investment, 897,300 square feet of new or renovated commercial and industrial space, an excess of 1,000 new jobs, and more than 150 new housing units.
The staff representative is Sara Dimitroff, who can be reached by phone at 989-894-8159.
For more information, view the following documents: