S.B. 733: COMMITTEE SUMMARY - CHARITABLE TRUST EXEMPTION

Senate Bill 733 (as introduced 10-7-97)

Committee: Finance

Date Completed: 2-17-98

CONTENT

The bill would amend the General Property Tax Act to provide an exemption from property taxes for certain property owned and occupied by a charitable trust.

Currently, the Act makes an exemption for property owned and occupied by a nonprofit charitable institution while occupied by that institution solely for the purposes for which it was incorporated. The bill provides that property owned and occupied by a charitable trust, in the same manner as property owned and occupied by a nonprofit charitable institution, would be exempt from property taxes.

Further, the Act provides a tax exemption for property owned by a nonprofit charitable institution that is leased, loaned, or otherwise made available to another nonprofit charitable institution, a nonprofit hospital, or a nonprofit educational institution, occupied by that entity solely for the purposes for which it was organized, and that would be exempt from taxes collected under the Act if the property were occupied by the lessor nonprofit charitable institution solely for the purposes for which it was organized. The bill would extend this exemption to property owned by a charitable trust.

MCL 211.7o - Legislative Analyst: G. Towne

FISCAL IMPACT

The bill would provide a property tax exemption for charitable trusts. At this time, data do not exist to accurately determine the fiscal impact.

- Fiscal Analyst: R. Ross

S9798\S733SA

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.