Neighborhood Enterprise Zone Act - PA 147 of 1992 - Neighborhood Enterprise Zone Program
What - The Neighborhood Enterprise Zone (NEZ) is a program that provides a reduction in real property taxes for the rehabilitation of existing residential housing or for new construction of residential housing.
Who - The NEZ is available to eligible property owners who make taxable improvements to existing residential housing or for a newly constructed residential housing that is located in an NEZ District. The City of Lansing currently has designated over 20 NEZ District areas. The NEZ Program lowers real property taxes.
Why - The purpose of establishing NEZs in Lansing is to promote home ownership and investment in areas where the greatest impact would occur and where such improvements will encourage additional investment in adjacent neighborhoods.
After the Lansing City Council has approved a NEZ District, the eligible property owner must make application through the Lansing EDC Office before pulling a building permit.
Example: For newly constructed properties, homeowners would pay one-half (1/2) of the State of Michigan's average millage rate with the exception of land. A newly constructed property valued at $100,000 would pay an estimated $2,333 in annual real property taxes without the NEZ tax and would pay an estimated $1,077 in annual real property taxes with the NEZ tax. The NEZ is typically approved for a period of 12 years by City Council.
Example: The amount of the NEZ tax on a rehabilitated residential structure is frozen at the pre-rehabilitated taxable value with the exception of land. If a home has a current taxable value of $20,000 and the property owner makes improvements that would increase the taxable value by $15,000, the taxable value would remain at $20,000 rather than $35,000. The NEZ is typically approved for a period of 12 years by City Council.
