House Introduced Bill 4808

HOUSE BILL No. 4808

May 22, 2001, Introduced by Rep. Scranton and referred to the Committee on Land Use and Environment.

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending sections 2a and 34c (MCL 211.2a and 211.34c), section

2a as amended by 1982 PA 539 and section 34c as amended by 2000

PA 415.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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Sec. 2a. (1) For BEFORE JANUARY 1, 2002, FOR purposes of

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section 2, a mobile home which THAT is not covered by
SUBJECT

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TO THE SPECIFIC TAX LEVIED UNDER section 41 of Act No. 243 of

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the Public Acts of 1959, being section 125.1041 of the Michigan

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Compiled Laws, and while 1959 PA 243, MCL 125.1041, located on

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land otherwise assessable as real property under this act,

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and NOT EXEMPT FROM THE COLLECTION OF TAXES UNDER THIS ACT,

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whether or not permanently affixed to the soil, shall be THAT

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REAL PROPERTY, IS considered real property and shall be assessed

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as part of the real property upon ON which the mobile home is

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located.

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(2) AFTER DECEMBER 31, 2001, FOR PURPOSES OF SECTION 2, A

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MOBILE HOME LOCATED ON REAL PROPERTY, WHETHER OR NOT PERMANENTLY

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AFFIXED TO THAT REAL PROPERTY, IS REAL PROPERTY AND SHALL BE

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ASSESSED AS REAL PROPERTY TO THE OWNER OF THE MOBILE HOME. FOR

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TAXES LEVIED AFTER DECEMBER 31, 2001 AND BEFORE JANUARY 1, 2003,

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A MOBILE HOME'S TAXABLE VALUE IS 50% OF THAT MOBILE HOME'S TRUE

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CASH VALUE. FOR TAXES LEVIED AFTER DECEMBER 31, 2002, A MOBILE

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HOME'S TAXABLE VALUE IS THAT VALUE DETERMINED UNDER SECTION 27A.

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(3) (2) As used in this section, "mobile home" does not

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include a travel trailer or camping trailer which THAT is

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either parked in a campground licensed by this state for not more

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than 180 days in any calendar year, or parked upon ON private

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property, including a designated storage area of a licensed camp-

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ground, for the sole purpose of storage.

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(4) (3) As used in this section, "mobile home" does not

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include a truck camper which is parked in a campground licensed

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by this state which THAT is a portable structure, designed and

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constructed to be loaded onto , or affixed to , the bed or

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chassis of a truck, and which THAT is used to provide temporary

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living quarters for recreational camping or travel.

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(5) (4) For purposes of AS USED IN this section: , the

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following definitions shall apply:

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(a) A travel trailer is "TRAVEL TRAILER" MEANS a vehicular

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portable structure mounted on wheels and of THAT IS a size and

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weight as THAT DOES not to require special highway
movement

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permits when IF drawn by a stock passenger automobile or
when

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IF drawn with a fifth wheel hitch mounted on a motor vehicle, and

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THAT is primarily designed, constructed, and used to provide tem-

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porary living quarters for recreational camping or travel.

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(b) A camping trailer is "CAMPING TRAILER" MEANS a vehicu-

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lar portable temporary living quarters used for recreational

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camping or travel and of THAT IS a size and weight as THAT

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DOES not to require special highway movement permits when
IF

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drawn by a motor vehicle.

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

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each year, the assessor shall classify every item of assessable

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property according to the definitions contained in this section.

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Following the March board of review, the assessor shall tabulate

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

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board of review for each classification and for the totals of

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

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assessor shall transmit to the county equalization department and

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to the state tax commission the tabulation of assessed valuations

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and other statistical information the state tax commission con-

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siders necessary to meet the requirements of this act and 1911

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PA 44, MCL 209.1 to 209.8.

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(2) The classifications of assessable real property are

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described as follows:

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(a) Agricultural real property includes parcels used par-

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tially or wholly for agricultural operations, with or without

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buildings, and parcels assessed to the department of natural

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

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this subdivision, "agricultural operations" means the following:

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(i) Farming in all its branches, including cultivating

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soil.

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(ii) Growing and harvesting any agricultural, horticultural,

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or floricultural commodity.

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(iii) Dairying.

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

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poultry.

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(v) Turf and tree farming.

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

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

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cessing, distribution, marketing, or shipping operation is not

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part of agricultural operations.

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(b) Commercial real property includes the following:

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(i) Platted or unplatted parcels used for commercial pur-

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poses, whether wholesale, retail, or service, with or without

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buildings.

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(ii) Parcels used by fraternal societies.

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

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or apartment buildings with more than 4 units.

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(c) Developmental real property includes parcels containing

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

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

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

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population center, or farm land subject to several competing

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valuation influences.

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(d) Industrial real property includes the following:

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(i) Platted or unplatted parcels used for manufacturing and

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processing purposes, with or without buildings.

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

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pumping stations, switches, substations, compressing stations,

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

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

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

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by the state geologist.

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(e) Residential real property includes the following:

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

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and condominium apartments located within or outside a village or

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

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tial purposes.

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

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

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located in an area used predominantly for recreational purposes.

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(iii) FOR TAXES LEVIED AFTER DECEMBER 31, 2001, A MOBILE

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HOME ON A PLATTED OR UNPLATTED PARCEL OR ON LEASED LAND, WHICH IS

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USED FOR, OR PROBABLY WILL BE USED FOR, RESIDENTIAL PURPOSES.

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

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

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over forest land with little or no merchantable products, and

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

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chase of this type of land is for residential or recreational

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uses, the classification shall be changed to residential.

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(3) The classifications of assessable personal property are

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described as follows:

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(a) Agricultural personal property includes farm buildings

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on leased land and any agricultural equipment and produce not

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exempt by law.

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(b) Commercial personal property includes the following:

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

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parcels, and inventories not exempt by law.

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(ii) Outdoor advertising signs and billboards.

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

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transporting vehicle but not designed for operation while the

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vehicle is moving on the highway.

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(iv) Unlicensed commercial vehicles or commercial vehicles

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licensed as special mobile equipment or by temporary permits.

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(v) Commercial buildings on leased land.

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(c) Industrial personal property includes the following:

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

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

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(ii) Industrial buildings on leased land.

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(iii) Personal property of mining companies valued by the

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state geologist.

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

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or cabin on leased land, and, FOR TAXES LEVIED BEFORE JANUARY 1,

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2002, a mobile home that would be assessable as real property

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under section 2a except that the land REAL PROPERTY on which it

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is located is not assessable because the land is exempt FROM

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THE COLLECTION OF TAXES UNDER THIS ACT.

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(e) Utility personal property includes the following:

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(i) Electric transmission and distribution systems, substa-

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

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transmission and distribution systems.

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

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lines, field pump units, and buildings.

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(iii) Inventories not exempt by law.

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

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

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

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(vi) Gas storage equipment.

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(vii) Transmission lines of gas or oil transporting

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companies.

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(viii) Utility buildings on leased land.

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(4) For taxes levied before January 1, 2003, buildings on

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leased land of any classification are improvements where the

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owner of the improvement is not the owner of the land or fee, the

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value of the land is not assessed to the owner of the building,

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and the improvement has been assessed as personal property pursu-

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ant to section 14(6). For taxes levied after December 31, 2002,

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buildings located upon leased land, except buildings exempt under

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section 9f, shall be assessed as real property under section 2

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and shall bear the same classification as the parcel upon which

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the building is located. For taxes levied after December 31,

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2001, buildings exempt under section 9f shall be assessed as per-

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sonal property.

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

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classification, the assessor shall determine the classification

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that most significantly influences the total valuation of the

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parcel.

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

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classification of that parcel shall notify the assessor and may

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protest the assigned classification to the March board of

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

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

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

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tax commission shall arbitrate the petition based on the written

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petition and the written recommendations of the assessor and the

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

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decision of the state tax commission regarding classification

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complaint petitions and the state tax commission's determination

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is final and binding for the year of the petition.

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(7) The department of treasury may appeal the classification

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of any assessable property to the residential and small claims

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division of the Michigan tax tribunal not later than December 31

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in the tax year for which the classification is appealed.

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

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assessment of property at other than the uniform percentage of

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true cash value prescribed by this act.

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Enacting section 1. This amendatory act does not take

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effect unless all of the following bills of the 91st Legislature

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are enacted into law:

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(a) House Bill No. 4580.

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(b) Senate Bill No. _______ or House Bill No. 4807

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(request no. 03562'01).

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