HOUSE BILL No. 4373


     March 3, 1999, Introduced by Reps. Cassis, Woronchak, Koetje, Patterson, Allen, Gosselin, Kukuk, Vear, Law and DeVuyst and referred to the Committee on Tax Policy.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   by amending sections 2, 8, 14, and 34c (MCL 211.2, 211.8, 211.14,

   and 211.34c), section 2 as amended by 1993 PA 313, section 8 as

   amended by 1983 PA 254, and section 34c as amended by 1996 PA

   476.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 2.  (1) For the purpose of taxation, real property

 2    includes all  lands  OF THE FOLLOWING:

 3         (A) ALL LAND within  the  THIS state, all buildings and fix-

 4    tures on the land, and ALL appurtenances  thereto  TO THE LAND,

 5    except as expressly exempted by law.  , and includes all 

 6         (B) ALL real property owned by  the  THIS state or purchased

 7    or condemned for public highway purposes by any board, officer,

 8    commission, or department of  the  THIS state and sold on land


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 1    contract, notwithstanding the fact that the deed has not been

 2    executed transferring title.

 3         (C) FOR TAXES LEVIED AFTER DECEMBER 31, 1998, BUILDINGS AND

 4    IMPROVEMENTS LOCATED UPON LEASED REAL PROPERTY IF THE VALUE OF

 5    THE BUILDINGS OR IMPROVEMENTS IS NOT OTHERWISE INCLUDED IN THE

 6    ASSESSMENT OF THE REAL PROPERTY.

 7         (2) The taxable status of persons and real and personal

 8    property for a tax year shall be determined as of each December

 9    31 of the immediately preceding year, which is considered the tax

10    day, any provisions in the charter of any city or village to the

11    contrary notwithstanding.  An assessing officer is not restricted

12    to any particular period in the preparation of the assessment

13    roll but may survey, examine, or review  properties  PROPERTY at

14    any time before or after the tax day.

15         (3) Notwithstanding a provision to the contrary in any law,

16    if real property is acquired for public purposes by purchase or

17    condemnation, all general property taxes, but not penalties,

18    levied during the 12 months immediately preceding, but not

19    including, the day title passes to the public agency shall be

20    prorated in accordance with this subsection.  The seller or con-

21    demnee is responsible for the portion of taxes from the levy date

22    or dates to, but not including, the day title passes and the

23    public agency is responsible for the remainder of the taxes.  If

24    the date that title will pass cannot be ascertained definitely

25    and an agreement in advance to prorate taxes is desirable, an

26    estimated date for the passage of title may be agreed to.  In the

27    absence of an agreement, the public agency shall compute the



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 1    proration of taxes as of the date title passes.  The question of

 2    proration of taxes shall not be considered in any condemnation

 3    proceeding.  As used in this paragraph "levy date" means the day

 4    on which general property taxes become due and payable.  In addi-

 5    tion to the portion of taxes for which the public agency is

 6    responsible under the provisions of this subsection, the public

 7    agency is also responsible for all general property taxes levied

 8    on or after the date title passes and before the property is

 9    removed from the tax rolls.

10         (4) In a real estate transaction between private parties in

11    the absence of an agreement to the contrary, the seller is

12    responsible for that portion of the annual taxes levied during

13    the 12 months immediately preceding, but not including, the day

14    title passes, from the levy date or dates to, but not including,

15    the day title passes and the buyer is responsible for the remain-

16    der of the annual taxes.  As used in this subsection, "levy date"

17    means the day on which a general property tax becomes due and

18    payable.

19         Sec. 8.  For the purposes of taxation, personal property

20     shall include  INCLUDES ALL OF THE FOLLOWING:

21         (a) All goods, chattels, and effects within  the  THIS

22    state.

23         (b) All goods, chattels, and effects belonging to inhab-

24    itants of this state, located without this state, except that

25    property actually and permanently invested in business in another

26    state shall not be included.





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 1         (c) All interests owned by individuals in  lands  REAL

 2    PROPERTY, the fee  of  TITLE TO which is in this state or the

 3    United States, except as otherwise provided in this act.

 4         (d)  All  FOR TAXES LEVIED BEFORE JANUARY 1, 1999, buildings

 5    and improvements located upon leased  lands  REAL PROPERTY,

 6    except  where  IF the value of the real property is also assessed

 7    to the lessee or owner of those buildings and improvements.  FOR

 8    TAXES LEVIED AFTER DECEMBER 31, 1998, BUILDINGS AND IMPROVEMENTS

 9    LOCATED UPON LEASED REAL PROPERTY SHALL BE ASSESSED AS REAL PROP-

10    ERTY UNDER SECTION 2 TO THE OWNER OF THE BUILDINGS OR IMPROVE-

11    MENTS IN THE LOCAL TAX COLLECTING UNIT IN WHICH THE BUILDINGS OR

12    IMPROVEMENTS ARE LOCATED IF THE VALUE OF THE BUILDINGS OR

13    IMPROVEMENTS IS NOT OTHERWISE INCLUDED IN THE ASSESSMENT OF THE

14    REAL PROPERTY.

15         (e) Tombs or vaults built within any burial grounds  ,  and

16    kept for hire or rent, in whole or in part, and the stock of a

17    corporation or association owning the tombs, vaults, or burial

18    grounds.

19         (f) All other personal property not enumerated in this sec-

20    tion  ,  and not especially exempted by law.

21         (g) The personal property of gas and coke companies, natural

22    gas companies, electric light companies, waterworks companies,

23    hydraulic companies, and pipe line companies transporting oil or

24    gas as public or common carriers, to be assessed in the

25     township, village, or city where  LOCAL TAX COLLECTING UNIT IN

26    WHICH the personal property is located.  The mains, pipes,

27    supports, and wires of these companies, including the supports



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 1    and wire or other line used for communication purposes in the

 2    operation of those facilities, and the rights of way and the

 3    easements or other interests in  land  REAL PROPERTY by virtue of

 4    which the mains, pipes, supports, and wires are erected and main-

 5    tained, shall be assessed as personal property in the  township,

 6     village, or city  LOCAL TAX COLLECTING UNIT where laid, placed,

 7    or located.  Interests in underground rock strata used for gas

 8    storage purposes, whether by lease or ownership separate from the

 9    surface of real property, shall be separately valued and assessed

10    as personal property in the  township, village, or city  LOCAL

11    TAX COLLECTING UNIT in which IT IS located to the person who

12    holds the interest.  These interests  INTERESTS in  such  under-

13    ground rock strata shall be reported as personal property to the

14     assessor  APPROPRIATE ASSESSING OFFICER for all  such  property

15    descriptions included in the storage field in the  township, vil-

16     lage, or city  LOCAL TAX COLLECTING UNIT and a separate valuation

17    shall be assessed for each school district.  The personal prop-

18    erty of street railroad, plank road, cable or electric railroad

19    or transportation companies, bridge companies, and all other com-

20    panies not required to pay a specific tax to  the  THIS state in

21    lieu of all other taxes, shall, except as  hereinafter  OTHERWISE

22    provided IN THIS SECTION, be assessed in the  township, village,

23     or city where  LOCAL TAX COLLECTING UNIT IN WHICH the property is

24    located, used, or laid, and the track, road, or bridge of  such 

25    a company  shall be held to be  IS CONSIDERED personal property.

26    None of the property assessable as personal property under this

27    subdivision shall be affected by any assessment or tax levied on



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 1    the  lands  REAL PROPERTY through or over which the  same 

 2    PERSONAL PROPERTY is laid, placed, or located, nor shall any

 3    right of way, easement, or other interest in  land  REAL

 4    PROPERTY, assessable as personal property under this subdivision,

 5    be extinguished or otherwise affected in case the REAL property

 6    subject  thereto shall be  TO ASSESSMENT IS sold in the exercise

 7    of the taxing power.

 8         (h)  During  FOR TAXES LEVIED BEFORE JANUARY 1, 1999, DURING

 9    the tenancy of a lessee, leasehold improvements and structures

10    installed and constructed on real property by the lessee, pro-

11    vided and to the extent the improvements or structures add to the

12     true cash  TAXABLE value of the real property notwithstanding

13    that the real property is encumbered by a lease agreement, and

14    the value added by the improvements or structures is not other-

15    wise included in the assessment of the real property or not oth-

16    erwise assessable under subdivision (j).  The cost of leasehold

17    improvements and structures on real property shall not be the

18    sole indicator of value.  Leasehold improvements and structures

19    assessed under this subdivision shall be assessed to the lessee.

20    FOR TAXES LEVIED AFTER DECEMBER 31, 1998, LEASEHOLD IMPROVEMENTS

21    AND STRUCTURES INSTALLED AND CONSTRUCTED ON LEASED REAL PROPERTY

22    SHALL BE ASSESSED AS REAL PROPERTY UNDER SECTION 2 TO THE OWNER

23    OF THE LEASEHOLD IMPROVEMENTS OR STRUCTURES IN THE LOCAL TAX COL-

24    LECTING UNIT IN WHICH THE LEASEHOLD IMPROVEMENTS OR STRUCTURES

25    ARE LOCATED IF THE VALUE OF THE LEASEHOLD IMPROVEMENTS OR STRUC-

26    TURES IS NOT OTHERWISE INCLUDED IN THE ASSESSMENT OF THE REAL

27    PROPERTY OR OTHERWISE ASSESSABLE UNDER SUBDIVISION (J).



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 1         (i) A leasehold estate received by a sublessor from which

 2    the sublessor receives net rentals in excess of net rentals

 3    required to be paid by the sublessor except to the extent that

 4    the excess rentals are attributable to the installation and con-

 5    struction of improvements and structures assessed under

 6    subdivision (h) or (j) or included in the assessment of the real

 7    property.  For purposes of this act, a leasehold estate  shall

 8     be  IS considered to be owned by the lessee receiving  such 

 9    additional net rentals.  A lessee in possession  shall be  IS

10    required to provide the assessor with the name and address of its

11    lessor.  Taxes  imposed by  COLLECTED UNDER this act on  such 

12    leasehold estates shall become a lien against the rentals paid by

13    the sublessee to the sublessor.

14         (j) To the extent not assessed as real property, a leasehold

15    estate of a lessee created by the difference between the income

16    that would be received by the lessor from the lessee on the basis

17    of the present economic income of the property as defined and

18    allowed by section 27(4), minus the actual value to the lessor

19    under the lease.  This subdivision  shall  DOES not apply to

20    property  when  IF subject to a lease entered into before

21    January 1, 1984 for which the terms of the lease governing the

22    rental rate or the tax liability have not been renegotiated after

23    December 31, 1983.  This subdivision  shall  DOES not apply to a

24    nonprofit housing cooperative.  As used in this subdivision,

25    "nonprofit cooperative housing corporation" means a nonprofit

26    cooperative housing corporation  which  THAT is engaged in

27    providing housing services to its stockholders and members and



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 1     which  THAT does not pay dividends or interest upon stock or

 2    membership investment but  which  THAT does distribute all earn-

 3    ings to its stockholders or members.

 4         Sec. 14.  (1) All goods and chattels  situate  LOCATED in

 5     some township  A LOCAL TAX COLLECTING UNIT other than  where 

 6    THAT IN WHICH the owner OF THE GOODS OR CHATTELS resides shall be

 7    assessed in the  township where situate, and not elsewhere  LOCAL

 8    TAX COLLECTING UNIT IN WHICH THE GOODS OR CHATTELS ARE LOCATED.

 9         (2) All animals kept throughout the year in  some township 

10    A LOCAL TAX COLLECTING UNIT other than  where  THAT IN WHICH the

11    owner OF THE ANIMALS resides shall be assessed to  such  THE

12    owner or the person in possession OF THE ANIMALS in the  township

13     where  LOCAL TAX COLLECTING UNIT IN WHICH THE ANIMALS ARE kept.

14         (3) The tangible personal property of minors under guardian-

15    ship shall be assessed to the guardian in the  township where he 

16    LOCAL TAX COLLECTING UNIT IN WHICH THE GUARDIAN resides, and the

17    personal property of any other person under guardianship shall be

18    assessed to the guardian in the  township where  LOCAL TAX COL-

19    LECTING UNIT IN WHICH the ward resides.

20         (4)  The tangible  TANGIBLE personal property belonging to

21    the  estates  ESTATE of A deceased  persons  PERSON, in the hands

22    of the executors, administrators, or trustees appointed under the

23    last will and testament of  such  THE deceased person, or by

24    ORDER OF any court of competent jurisdiction, shall be assessed

25    to  them  THE EXECUTORS, ADMINISTRATORS, OR TRUSTEES in the

26     township  LOCAL TAX COLLECTING UNIT and in the school district

27     where  IN WHICH the deceased  last dwelt  PERSON RESIDED, until



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 1     they shall  THE EXECUTORS, ADMINISTRATORS, OR TRUSTEES give

 2    notice to the  supervisor or other  APPROPRIATE assessing officer

 3    that the estate has been distributed.  to the legatees or benefi-

 4     ciaries or other persons entitled thereto.  If  such  THE

 5    deceased PERSON was a nonresident of  the  THIS state,  such  THE

 6    property shall be assessed in the  township where situated  LOCAL

 7    TAX COLLECTING UNIT IN WHICH IT IS LOCATED, to  such  THE execu-

 8    tors, administrators, or trustees or to the person in possession

 9    OF THE PROPERTY.

10         (5) Tangible personal property under the control of a

11    trustee or agent, whether a corporation or a natural person, may

12    be assessed to  such  THE trustee or agent in the  township where

13     he  LOCAL TAX COLLECTING UNIT IN WHICH THE TRUSTEE OR AGENT

14    resides, except as otherwise provided.  Personal property mort-

15    gaged or pledged  shall be deemed  IS CONSIDERED the property of

16    the person in possession  thereof  OF THAT PERSONAL PROPERTY and

17    may be assessed to  him, and personal  THAT PERSON.  PERSONAL

18    property not otherwise taxed under this act  which  THAT is in

19    the possession of any person, firm, or corporation using  same 

20    THAT PROPERTY in connection with a business conducted for profit

21     shall be deemed  IS CONSIDERED the property of  such  THAT

22    person, FIRM, OR CORPORATION for taxation and SHALL BE assessed

23    to  him accordingly  THAT PERSON, FIRM, OR CORPORATION.

24         (6)  All tangible personal property of any person situated

25     upon, also all buildings  FOR TAXES LEVIED BEFORE JANUARY 1,

26    1999, A BUILDING situated  and being  upon  the lands  REAL

27    PROPERTY of the United States or of this state, or upon the



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 1     lands  REAL PROPERTY of any person,   persons,  firm,

 2    association, or corporation  , where  IF the owner of  such

 3     buildings or personal property  THE BUILDING is not the owner of

 4    the fee  in such lands  TITLE TO THAT REAL PROPERTY, and  where

 5     such  IF THE lessor or owner of  such buildings or property has 

 6    THE BUILDING IS not  bound himself  OBLIGATED to pay taxes on the

 7    real  estate, shall be deemed  PROPERTY IS CONSIDERED personal

 8    property for the purposes of taxation and assessment, and shall

 9    be assessed as personal property to the owner or occupant

10     thereof  OF THE BUILDING in the  city, village or township 

11    LOCAL TAX COLLECTING UNIT in which  such lands are situated and

12     such buildings shall be  THE REAL PROPERTY IS LOCATED.  THE

13    BUILDING IS subject to sale for taxes in the same manner as pro-

14    vided for the sale of personal property.  It  shall  IS not  be 

15    necessary to remove  any such buildings  A BUILDING for the pur-

16    pose of sale.  FOR TAXES LEVIED AFTER DECEMBER 31, 1998, BUILD-

17    INGS AND IMPROVEMENTS LOCATED UPON REAL PROPERTY OF THE UNITED

18    STATES OR OF THIS STATE, OR UPON THE REAL PROPERTY OF ANY PERSON,

19    FIRM, ASSOCIATION, OR CORPORATION IF THE OWNER OF THE BUILDING IS

20    NOT THE OWNER OF THE FEE TITLE TO THAT REAL PROPERTY IS CONSID-

21    ERED REAL PROPERTY FOR THE PURPOSES OF TAXATION AND ASSESSMENT,

22    AND SHALL BE ASSESSED AS REAL PROPERTY UNDER SECTION 2 TO THE

23    OWNER OR OCCUPANT OF THE BUILDING IN THE LOCAL TAX COLLECTING

24    UNIT IN WHICH THE BUILDINGS ARE LOCATED IF THE VALUE OF THE

25    BUILDING IS NOT OTHERWISE INCLUDED IN THE ASSESSMENT OF THE REAL

26    PROPERTY.





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 1         (7) Tangible personal property of nonresidents of  the  THIS

 2    state and all forest products, owned by residents or

 3    nonresidents, or estates of deceased persons, shall be assessed

 4    in the  township or ward where the same may be  LOCAL TAX COL-

 5    LECTING UNIT IN WHICH THE TANGIBLE PERSONAL PROPERTY OR FOREST

 6    PRODUCTS ARE LOCATED, to the person  , persons  or corporation

 7     having  IN control of the premises, store, mill, dockyard,

 8    piling ground, place of storage, or warehouse where  such prop-

 9     erty is situated in such township  THE TANGIBLE PERSONAL PROPERTY

10    OR FOREST PRODUCTS ARE LOCATED, on December 31.  , except that

11     where such property is  IF TANGIBLE PERSONAL PROPERTY OR FOREST

12    PRODUCTS ARE in transit to  some place  A LOCAL TAX COLLECTING

13    UNIT within  the  THIS state,  it  THE TANGIBLE PERSONAL PROPERTY

14    OR FOREST PRODUCTS shall be assessed in  such place, except that

15     where such property is  THAT LOCAL TAX COLLECTING UNIT. IF TANGI-

16    BLE PERSONAL PROPERTY OR FOREST PRODUCTS ARE in transit to some

17    place without  the  THIS state,  it  THE TANGIBLE PERSONAL PROP-

18    ERTY OR FOREST PRODUCTS shall be assessed at the  place  LOCAL

19    TAX COLLECTING UNIT in this state nearest to the last boom or

20    sorting gap of the stream in or bordering on this state in which

21     said property  THE TANGIBLE PERSONAL PROPERTY OR FOREST PRODUCTS

22    will naturally be last floated during  the  transit,  thereof, 

23    and  in case  IF the transit of  any such property  THE TANGIBLE

24    PERSONAL PROPERTY OR FOREST PRODUCTS is to be other than through

25    any watercourse in or bordering on this state, then  such  THE

26    assessment shall be made IN THE LOCAL TAX COLLECTING UNIT at the

27    point  where such property  AT WHICH THE TANGIBLE PERSONAL



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 1    PROPERTY OR FOREST PRODUCTS will naturally leave  the  THIS state

 2    in the ordinary course of  its  transit.  ; and such property so 

 3    THE TANGIBLE PERSONAL PROPERTY OR FOREST PRODUCTS in transit to

 4    any place without  the  THIS state shall be assessed to the owner

 5    or the person  , persons,  or corporation in possession or con-

 6    trol  thereof, and in case such  OF THE TANGIBLE PERSONAL PROP-

 7    ERTY OR FOREST PRODUCTS.  IF THE transit OF THE TANGIBLE PERSONAL

 8    PROPERTY OR FOREST PRODUCTS will pass  said logs  through the

 9    booms or sorting gaps or into the places of storage of any person

10     , persons  or corporation operating upon any  such  stream, then

11     such property  THE TANGIBLE PERSONAL PROPERTY OR FOREST PRODUCTS

12    may be assessed to  such  THAT person  , persons  or corporation.

13     ; and the  A person  , persons  or corporation  so  assessed for

14    any  such property  TANGIBLE PERSONAL PROPERTY OR FOREST PRODUCTS

15    belonging to a nonresident of this state  shall be  IS entitled

16    to recover from the owner of  such property  THE TANGIBLE PER-

17    SONAL PROPERTY OR FOREST PRODUCTS by a suit in attachment,

18    garnishment, or for money had and received, any amount  which 

19    THAT the person  , persons  or corporation  so  assessed  are  IS

20    compelled to pay because of  such  THE assessment,  and  shall

21    have a lien upon  said property  THE TANGIBLE PERSONAL PROPERTY

22    OR FOREST PRODUCTS as a security against loss or damage because

23    of being  so  assessed for the  property  TANGIBLE PERSONAL PROP-

24    ERTY OR FOREST PRODUCTS of another, and may retain possession of

25     such property  THE TANGIBLE PERSONAL PROPERTY OR FOREST PRODUCTS

26    until  such  THAT lien is satisfied.  but the  A person  ,

27     persons  or corporation  so  assessed  shall  IS not  be 



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 1    compelled to pay taxes on account of  such  THAT assessment  , 

 2    unless the  supervisor or  APPROPRIATE assessing officer,  shall 

 3    at the time of assessment,  serve  SERVES notice in writing on

 4    the person  , persons  or corporation  having  IN control of the

 5    premises, store, mill, dockyard, piling ground, place of storage,

 6    or warehouse that  such  THE assessment will be made.  Any  AN

 7    owner or person interested in  said property  THE TANGIBLE PER-

 8    SONAL PROPERTY OR FOREST PRODUCTS may secure the release of the

 9     same  TANGIBLE PERSONAL PROPERTY OR FOREST PRODUCTS from  such 

10    THAT lien by giving to the person  , persons  or corporation  so 

11    assessed a bond in an amount double the probable tax to be

12    assessed  thereon  ON THE TANGIBLE PERSONAL PROPERTY OR FOREST

13    PRODUCTS, but not less than  the sum of  $200.00, with 2 suffi-

14    cient sureties, conditioned for the payment of  such  THE tax by

15     said  THE owner or person interested and the saving of the

16    person  , persons  or corporation assessed from payment  thereof 

17    OF THE ASSESSMENT and from costs, damages, and expenses on

18    account of  his  nonpayment, which bond as to amount and suffi-

19    ciency of sureties shall be approved by the county clerk of the

20    county in which the assessment is made.

21         Sec. 34c.  (1) Not later than the first Monday in March in

22    each year, the assessor shall classify every item of assessable

23    property according to the definitions contained in this section.

24    Following the March board of review, the assessor shall tabulate

25    the total number of items and the valuations as approved by the

26    board of review for each classification and for the totals of

27    real and personal property in the local tax collecting unit.  The



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 1    assessor shall transmit to the county equalization department and

 2    to the state tax commission the tabulation of assessed valuations

 3    and other statistical information the state tax commission con-

 4    siders necessary to meet the requirements of this act and  Act

 5     No. 44 of the Public Acts of 1911, being sections 209.1 to 209.8

 6     of the Michigan Compiled Laws  1911 PA 44, MCL 209.1 TO 209.8.

 7         (2) The classifications of assessable real property are

 8    described as follows:

 9         (a) Agricultural real property includes parcels used par-

10    tially or wholly for agricultural operations, with or without

11    buildings, and parcels assessed to the department of natural

12    resources and valued by the state tax commission.  As used in

13    this subdivision, "agricultural operations" means the following:

14         (i) Farming in all its branches, including cultivating

15    soil.

16         (ii) Growing and harvesting any agricultural, horticultural,

17    or floricultural commodity.

18         (iii) Dairying.

19         (iv) Raising livestock, bees, fish, fur-bearing animals, or

20    poultry.

21         (v) Turf and tree farming.

22         (vi) Performing any practices on a farm incident to, or in

23    conjunction with, farming operations.  A commercial storage, pro-

24    cessing, distribution, marketing, or shipping operation is not

25    part of agricultural operations.

26         (b) Commercial real property includes the following:





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 1         (i) Platted or unplatted parcels used for commercial

 2    purposes, whether wholesale, retail, or service, with or without

 3    buildings.

 4         (ii) Parcels used by fraternal societies.

 5         (iii) Parcels used as golf courses, boat clubs, ski areas,

 6    or apartment buildings with more than 4 units.

 7         (c) Developmental real property includes parcels containing

 8    more than 5 acres without buildings, or more than 15 acres with a

 9    market value in excess of its value in use.  Developmental real

10    property may include farm land or open space land adjacent to a

11    population center, or farm land subject to several competing val-

12    uation influences.

13         (d) Industrial real property includes the following:

14         (i) Platted or unplatted parcels used for manufacturing and

15    processing purposes, with or without buildings.

16         (ii) Parcels used for utilities sites for generating plants,

17    pumping stations, switches, substations, compressing stations,

18    warehouses, rights-of-way, flowage land, and storage areas.

19         (iii) Parcels used for removal or processing of gravel,

20    stone, or mineral ores, whether valued by the local assessor or

21    by the state geologist.

22         (e) Residential real property includes the following:

23         (i) Platted or unplatted parcels, with or without buildings,

24    and condominium apartments located within or outside a village or

25    city, which are used for, or probably will be used for, residen-

26    tial purposes.





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 1         (ii) Parcels that are used for, or probably will be used

 2    for, recreational purposes, such as lake lots and hunting lands,

 3    located in an area used predominantly for recreational purposes.

 4         (f) Timber-cutover real property includes parcels that are

 5    stocked with forest products of merchantable type and size, cut-

 6    over forest land with little or no merchantable products, and

 7    marsh lands or other barren land.  However, when a typical pur-

 8    chase of this type of land is for residential or recreational

 9    uses, the classification shall be changed to residential.

10         (3) The classifications of assessable personal property are

11    described as follows:

12         (a) Agricultural personal property includes farm buildings

13    on leased land and any agricultural equipment and produce not

14    exempt by law.

15         (b) Commercial personal property includes the following:

16         (i) All equipment, furniture, and fixtures on commercial

17    parcels, and inventories not exempt by law.

18         (ii) Outdoor advertising signs and billboards.

19         (iii) Well drilling rigs and other equipment attached to a

20    transporting vehicle but not designed for operation while the

21    vehicle is moving on the highway.

22         (iv) Unlicensed commercial vehicles or commercial vehicles

23    licensed as special mobile equipment or by temporary permits.

24         (v) Commercial buildings on leased land.

25         (c) Industrial personal property includes the following:

26         (i) All machinery and equipment, furniture and fixtures, and

27    dies on industrial parcels, and inventories not exempt by law.



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 1         (ii) Industrial buildings on leased land.

 2         (iii) Personal property of mining companies valued by the

 3    state geologist.

 4         (d) Residential personal property includes a home, cottage,

 5    or cabin on leased land, and a mobile home that would be asses-

 6    sable as real property under section 2a except that the land on

 7    which it is located is not assessable because the land is

 8    exempt.

 9         (e) Utility personal property includes the following:

10         (i) Electric transmission and distribution systems, substa-

11    tion equipment, spare parts, gas distribution systems, and water

12    transmission and distribution systems.

13         (ii) Oil wells and allied equipment such as tanks, gathering

14    lines, field pump units, and buildings.

15         (iii) Inventories not exempt by law.

16         (iv) Gas wells with allied equipment and gathering lines.

17         (v) Oil or gas field equipment stored in the open or in

18    warehouses such as drilling rigs, motors, pipes, and parts.

19         (vi) Gas storage equipment.

20         (vii) Transmission lines of gas or oil transporting

21    companies.

22         (viii) Utility buildings on leased land.

23         (4)  Buildings  FOR TAXES LEVIED BEFORE JANUARY 1, 1999,

24    BUILDINGS on leased land of any classification are improvements

25    where the owner of the improvement is not the owner of the land

26    or fee and has not bound himself or herself to pay taxes levied

27    against the land or fee and the improvement has been assessed as



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 1    personal property pursuant to section 14(6).  FOR TAXES LEVIED

 2    AFTER DECEMBER 31, 1998, BUILDINGS LOCATED UPON LEASED LAND SHALL

 3    BE ASSESSED AS REAL PROPERTY UNDER SECTION 2 AND SHALL BEAR THE

 4    SAME CLASSIFICATION AS THE PARCEL UPON WHICH THE BUILDING IS

 5    LOCATED.

 6         (5) If the total usage of a parcel includes more than 1

 7    classification, the assessor shall determine the classification

 8    that most significantly influences the total valuation of the

 9    parcel.

10         (6) An owner of any assessable property who disputes the

11    classification of that parcel shall notify the assessor and may

12    protest the assigned classification to the March board of

13    review.  An owner or assessor may appeal the decision of the

14    March board of review by filing a petition with the state tax

15    commission not later than June 30 in that tax year.  The state

16    tax commission shall arbitrate the petition based on the written

17    petition and the written recommendations of the assessor and the

18    state tax commission staff.  An appeal may not be taken from the

19    decision of the state tax commission regarding classification

20    complaint petitions and the state tax commission's determination

21    is final and binding for the year of the petition.

22         (7) The department of treasury may appeal the classification

23    of any assessable property to the residential and small claims

24    division of the Michigan tax tribunal not later than December 31

25    in the tax year for which the classification is appealed.







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 1         (8) This section shall not be construed to encourage the

 2    assessment of property at other than the uniform percentage of

 3    true cash value prescribed by this act.


















































   02310'99          Final page.                            FDD