©2016 Michigan Economic Development Corporation

New Tax-Free Renaissance Zones Announced

Tuesday, November 30, 1999

John Truscott
(517) 335-6397

Nine Additional Zones Waived from Paying Taxes Lieutenant Governor Dick Posthumus announced today recommendations for the creation of nine new Renaissance Zones throughout the state. The new zones bring the total number of Renaissance Zones in the state to 20. The zones, which will be free of virtually all state and local taxes for both residents and businesses, are scattered from Detroit to the Upper Peninsula. Four urban, four rural zones and one former military installation were chosen. The following communities were recommended for Renaissance Zones:

ZoneTypeAcreageDuration
Wayne County Urban 89.87 15 years
City of Jackson and Jackson County Urban 295.40 15 years
City of Muskegon and City of Muskegon Heights Urban 49.59 15 years
Kalamazoo County, the City of Kalamazoo and the City of Battle Creek Urban 194.4 15 years
Alpena County, the City of Alpena, Grand Traverse County and Presque Isle County Rural 634.41 15 years
Huron, Sanilac and Tuscola County Rural 260.68 10 years
Lake, Osceola and Clare County Rural 978.55 15 years
Van Buren County Rural427.86 10 years
K.I. Sawyer Air Force BaseMilitary1249.9015 years
In addition to allowing designation of the new Renaissance Zones, the legislation also enabled the existing eleven zone areas to modify their boundaries, add new subzones and/or change the time length of their designation. Flint, Saginaw, Benton Harbor/Berrien County and Manistee County took advantage of the opportunity and each will expand their zone, upon approval by the State Administrative Board. "Three years ago we made a prediction that Michigan would see an increasing level of investment in the first 11 Renaissance Zones," Lieutenant Governor Dick Posthumus said. "Fortunately we have. These 11 zones have improved Michigan's economy with 126 projects, 3,612 jobs and over $315 million in private investment. I'm confident that the new zones will be just as successful." Governor Engler proposed a second round of Renaissance Zones to build on the success of the first round, as a powerful incentive to revitalize economically distressed areas throughout the state. Those in the zones will pay no Personal Income Tax, no Single Business Tax, no State Education Tax, no Real Property Tax, no Personal Property Tax, no Local Income Tax and no Utility Users Tax. "The Renaissance Zones have been so successful that it only seems right to give some other Michigan communities this powerful business development tool, and I want to thank the legislature for passing the bill," said Doug Rothwell president and CEO of the Michigan Economic Development Corporation. "After all, despite our great economic success this decade, there are still pockets of our state that need a boost. Renaissance Zones provide that boost." Communities with new zones have the option of beginning their tax?free status either on January 1, 2000 or January 1, 2001. Under the legislation, the Michigan Strategic Fund approved the recommendations announced today. The State Administrative Board will take a final vote on the recommendations on December 7, 1999. The initial Renaissance Zones began on January 1, 1997. They include: Benton Harbor/St. Joseph/Benton Township, Detroit, Flint, Grand Rapids, Lansing, Saginaw, Gogebic/Ontonagon/Houghton Counties, Manistee County, Montcalm/Gratiot Counties, the former Warren Tank arsenal, and the former Wurtsmith Air Force Base.