HOUSE BILL No. 5898 April 16, 2002, Introduced by Reps. Shackleton, Raczkowski, Gilbert, Richardville, Kooiman, Palmer, Bovin, Stamas, Neumann, Cameron Brown, Allen, Patterson, Ehardt, Gosselin, Kowall, Plakas, Julian, Tabor, Stewart, Hummel and Howell and referred to the Committee on Tax Policy. A bill to amend 1893 PA 206, entitled "The general property tax act," by amending section 7o (MCL 211.7o), as amended by 2000 PA 309. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 7o. (1) Real or personal property owned and occupied 2 by a nonprofit charitable institution while occupied by that non- 3 profit charitable institution solely for the purposes for which 4 it was incorporated is exempt from the collection of taxes under 5 this act. 6 (2) Real or personal property owned and occupied by a chari- 7 table trust while occupied by that charitable trust solely for 8 the charitable purposes for which that charitable trust was 9 established is exempt from the collection of taxes under this 10 act. 06204'01 FDD 2 1 (3) REAL OR PERSONAL PROPERTY OWNED AND OCCUPIED BY A 2 FRATERNAL OR VETERANS ORGANIZATION WHILE OCCUPIED BY THAT 3 FRATERNAL OR VETERANS ORGANIZATION SOLELY FOR THE PURPOSES FOR 4 WHICH THAT FRATERNAL OR VETERANS ORGANIZATION WAS ESTABLISHED IS 5 EXEMPT FROM THE COLLECTION OF TAXES UNDER THIS ACT. 6 (4)(3)Real or personal property owned by a nonprofit 7 charitable institution,orcharitable trust, OR FRATERNAL OR 8 VETERANS ORGANIZATION that is leased, loaned, or otherwise made 9 available to another nonprofit charitable institution,orchar- 10 itable trust, OR FRATERNAL OR VETERANS ORGANIZATION or to a non- 11 profit hospital or a nonprofit educational institution that is 12 occupied by that nonprofit charitable institution, charitable 13 trust, FRATERNAL OR VETERANS ORGANIZATION, nonprofit hospital, or 14 nonprofit educational institution solely for the purposes for 15 which that nonprofit charitable institution, charitable trust, 16 FRATERNAL OR VETERANS ORGANIZATION, nonprofit hospital, or non- 17 profit educational institution was organized or established and 18 that would be exempt from taxes collected under this act if the 19 real or personal property were occupied by the lessor nonprofit 20 charitable institution,orcharitable trust, OR FRATERNAL OR 21 VETERANS ORGANIZATION solely for the purposes for which the 22 lessor charitable nonprofit institution was organized or the 23 charitable trust OR FRATERNAL OR VETERANS ORGANIZATION was estab- 24 lished is exempt from the collection of taxes under this act. 25 (5)(4)For taxes levied after December 31, 1997, real or 26 personal property owned by a nonprofit charitable institution, 27orcharitable trust, OR FRATERNAL OR VETERANS ORGANIZATION that 06204'01 3 1 is leased, loaned, or otherwise made available to a governmental 2 entity is exempt from the collection of taxes under this act if 3 all of the following conditions are satisfied: 4 (a) The real or personal property would be exempt from the 5 collection of taxes under this act under section 7m if the real 6 or personal property were owned or were being acquired pursuant 7 to an installment purchase agreement by the lessee governmental 8 entity. 9 (b) The real or personal property would be exempt from the 10 collection of taxes under this act if occupied by the lessor non- 11 profit charitable institution,orcharitable trust, OR FRATER- 12 NAL OR VETERANS ORGANIZATION solely for the purposes for which 13 the lessor charitable nonprofit institution was organized or the 14 charitable trust OR FRATERNAL OR VETERANS ORGANIZATION was 15 established. 16 (6)(5)If authorized by a resolution of the local tax 17 collecting unit in which the real or personal property is 18 located, real or personal property owned by a nonprofit charita- 19 ble institution that is occupied and used by the nonprofit chari- 20 table institution's chief executive officer as his or her princi- 21 pal residence as a condition of his or her employment and that is 22 contiguous to real property that contains the nonprofit charita- 23 ble institution's principal place of business is exempt from the 24 collection of taxes under this act. 25 (7)(6)A charitable home of a fraternal OR VETERANS 26 ORGANIZATION or secret society, or a nonprofit corporation whose 27 stock is wholly owned by a religious SOCIETY or fraternal 06204'01 4 1societyOR VETERANS ORGANIZATION that owns and operates 2 facilities for the aged and chronically ill and in which the net 3 income from the operation of the corporation does not inure to 4 the benefit of any person other than the residents, is exempt 5 from the collection of taxes under this act. 6 (8)(7)As used in this section: 7 (a) "Charitable trust" means a charitable trust registered 8 under the supervision of trustees for charitable purposes act, 9 1961 PA 101, MCL 14.251 to 14.266. 10 (B) "FRATERNAL OR VETERANS ORGANIZATION" MEANS AN ORGANIZA- 11 TION WITHIN THIS STATE, EXCEPT A COLLEGE FRATERNITY OR SORORITY, 12 THAT MEETS ALL OF THE FOLLOWING REQUIREMENTS: 13 (i) IS NOT ORGANIZED FOR PECUNIARY PROFIT. 14 (ii) IS A BRANCH, LODGE, OR CHAPTER OF A NATIONAL OR STATE 15 FRATERNAL OR VETERANS ORGANIZATION. 16 (iii) EXISTS FOR THE COMMON PURPOSE, BROTHERHOOD, OR OTHER 17 INTERESTS OF ITS MEMBERS. 18 (C)(b)"Governmental entity" means 1 or more of the 19 following: 20 (i) The federal government or an agency, department, divi- 21 sion, bureau, board, commission, council, or authority of the 22 federal government. 23 (ii) This state or an agency, department, division, bureau, 24 board, commission, council, or authority of this state. 25 (iii) A county, city, township, village, local or intermedi- 26 ate school district, or municipal corporation. 06204'01 5 1 (iv) A public educational institution, including, but not 2 limited to, a local or intermediate school district, a public 3 school academy, a community college or junior college established 4 pursuant to section 7 of article VIII of the state constitution 5 of 1963, or a state 4-year institution of higher education 6 located in this state. 7 (v) Any other authority or public body created under state 8 law. 9 (D)(c)"Public school academy" means a public school 10 academy organized under the revised school code, 1976 PA 451, MCL 11 380.1 to 380.1852. 06204'01 Final page. 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