LANSING — Rep. Sharon Tyler announced Tuesday that Gov. Rick Snyder has signed legislation that allows local governments to offer property tax exemptions for vacant or obsolete property being rehabilitated within Commercial Rehabilitation Districts.

Public Act 81 extends the Commercial Rehabilitation Act from Bay City to any vacant commercial property in Michigan.

The new law allows local governments to decide which qualified facilities will receive one- to 10-year exemption from property taxes.

Companies will still pay taxes on the land and pay school taxes, but the taxable value of the building is frozen, giving a good incentive to rehabilitate the facility.

“Rehabilitating these commercial structures into vital spaces is an important economic development tool to help our communities thrive,” said Tyler, R-Niles.

“Extending this act gives local governments across the state another way to fight urban blight by encouraging companies to redevelop existing or abandoned commercial structures.”