HOUSE BILL No. 5873


     June 7, 2000, Introduced by Rep. Faunce and referred to the Committee on Tax Policy.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   (MCL 211.1 to 211.157) by adding section 7gg.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 7GG.  (1) THE GOVERNING BODY OF A LOCAL TAX COLLECTING

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      UNIT MAY BY RESOLUTION EXEMPT FROM THE COLLECTION OF TAXES UNDER

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      THIS ACT ALL NEW CONSTRUCTION ON HOMESTEAD PROPERTY FOR THE

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      PERIOD PROVIDED IN SUBSECTION (2).  BEFORE ACTING ON THE RESOLU-

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      TION, THE CLERK OF THE LOCAL TAX COLLECTING UNIT SHALL NOTIFY IN

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      WRITING THE ASSESSOR OF THE LOCAL TAX COLLECTING UNIT AND THE

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      LEGISLATIVE BODY OF EACH TAXING UNIT THAT LEVIES AD VALOREM PROP-

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      ERTY TAXES IN THE LOCAL TAX COLLECTING UNIT AND SHALL AFFORD THE

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      ASSESSOR AND A REPRESENTATIVE OF THE AFFECTED TAXING UNITS AN

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      OPPORTUNITY FOR A HEARING ON THE PROPOSED RESOLUTION.




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           (2) THE EXEMPTION UNDER THIS SECTION IS EFFECTIVE ON THE

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      DECEMBER 31 IMMEDIATELY SUCCEEDING THE ADOPTION OF THE RESOLUTION

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      BY THE GOVERNING BODY OF THE LOCAL TAX COLLECTING UNIT.  THE

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      EXEMPTION SHALL CONTINUE IN EFFECT UNTIL THE HOMESTEAD PROPERTY

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      IS TRANSFERRED OR FOR A PERIOD SPECIFIED IN THE RESOLUTION WHICH

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      SHALL NOT BE MORE THAN 5 YEARS, WHICHEVER IS SOONER.  A COPY OF

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      THE RESOLUTION SHALL BE FILED WITH THE STATE TAX COMMISSION.

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           (3) AS USED IN THIS SECTION:

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           (A) "HOMESTEAD" MEANS THAT TERM AS DEFINED UNDER SECTION

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      7DD.

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           (B) "HOMESTEAD PROPERTY" MEANS A HOMESTEAD EXEMPT UNDER SEC-

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      TION 7CC FROM THE TAX LEVIED BY A LOCAL SCHOOL DISTRICT FOR

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      SCHOOL OPERATING PURPOSES TO THE EXTENT PROVIDED UNDER SECTION

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      1211 OF THE REVISED SCHOOL CODE, 1976 PA 451, MCL 380.1211.

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           (C) "NEW CONSTRUCTION" MEANS THAT TERM AS DEFINED IN SECTION

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      34D(1)(B)(iii).

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           (D) "TRANSFERRED" MEANS A TRANSFER OF OWNERSHIP AS THAT TERM

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      IS DESCRIBED IN SECTION 27A.





















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