SB-0133,As Passed Senate, March 13, 2003                                    

SUBSTITUTE FOR

SENATE BILL NO. 133

                                                                             A bill to amend 1893 PA 206, entitled                                             

"The general property tax act,"                                             

by amending sections 7u, 7cc, 7dd, 24c, 27d, and 120 (MCL 211.7u,           

211.7cc, 211.7dd, 211.24c, 211.27d, and 211.120), sections 7u and           

24c as amended by 2002 PA 620, section 7cc as amended by 2002 PA            

624, section 7dd as amended and section 27d as added by 1996 PA             

476, and section 120 as added by 1995 PA 74.                                

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 7u.  (1) The  homestead principal residence of persons                

2   who, in the judgment of the supervisor and board of review, by              

3   reason of poverty, are unable to contribute toward the public               

4   charges is eligible for exemption in whole or in part from                  

5   taxation under this act.  This section does not apply to the                

6   property of a corporation.                                                  

7       (2) To be eligible for exemption under this section, a person               

1   shall do all of the following on an annual basis:                           

2       (a) Be an owner of and occupy as a  homestead principal                    

3   residence the property for which an exemption is requested.                 

4       (b) File a claim with the supervisor or board of review on a                

5   form provided by the local assessing unit, accompanied by federal           

6   and state income tax returns for all persons residing in the                

7   homestead principal residence, including any property tax                 

8   credit returns, filed in the immediately preceding year or in the           

9   current year.  The filing of a claim under this subsection                  

10  constitutes an appearance before the board of review for the                

11  purpose of preserving the claimant's right to appeal the decision           

12  of the board of review regarding the claim.                                 

13      (c) Produce a valid driver's license or other form of                       

14  identification if requested by the supervisor or board of                   

15  review.                                                                     

16      (d) Produce a deed, land contract, or other evidence of                     

17  ownership of the property for which an exemption is requested if            

18  required by the supervisor or board of review.                              

19      (e) Meet the federal poverty guidelines updated annually in                 

20  the federal register by the United States department of health              

21  and human services under authority of section 673 of subtitle B             

22  of title VI of the omnibus budget reconciliation act of 1981,               

23  Public Law 97-35, 42 U.S.C. 9902, or alternative guidelines                 

24  adopted by the governing body of the local assessing unit                   

25  provided the alternative guidelines do not provide income                   

26  eligibility requirements less than the federal guidelines.                  

27      (3) The application for an exemption under this section shall               

1   be filed after January 1 but before the day prior to the last day           

2   of the board of review.                                                     

3       (4) The governing body of the local assessing unit shall                    

4   determine and make available to the public the policy and                   

5   guidelines the local assessing unit uses for the granting of                

6   exemptions under this section.  The guidelines shall include but            

7   not be limited to the specific income and asset levels of the               

8   claimant and total household income and assets.                             

9       (5) The board of review shall follow the policy and                         

10  guidelines of the local assessing unit in granting or denying an            

11  exemption under this section unless the board of review                     

12  determines there are substantial and compelling reasons why there           

13  should be a deviation from the policy and guidelines and the                

14  substantial and compelling reasons are communicated in writing to           

15  the claimant.                                                               

16      (6) A person who files a claim under this section is not                    

17  prohibited from also appealing the assessment on the property for           

18  which that claim is made before the board of review in the same             

19  year.                                                                       

20      (7) As used in this section,  "homestead" means homestead

21  "principal residence" means principal residence or qualified                

22  agricultural property as those terms are defined in section 7dd.            

23      Sec. 7cc.  (1) A  homestead principal residence is exempt                  

24  from the tax levied by a local school district for school                   

25  operating purposes to the extent provided under section 1211 of             

26  the revised school code, 1976 PA 451, MCL 380.1211, if an owner             

27  of that  homestead principal residence claims an exemption as              

1   provided in this section.  Notwithstanding the tax day provided             

2   in section 2, the status of property as a  homestead principal             

3   residence shall be determined on the date an affidavit claiming             

4   an exemption is filed under subsection (2).                                 

5       (2) An owner of property may claim an exemption under this                  

6   section by filing an affidavit on or before May 1 with the local            

7   tax collecting unit in which the property is located.  The                  

8   affidavit shall state that the property is owned and occupied as            

9   a  homestead principal residence by that owner of the property             

10  on the date that the affidavit is signed.  The affidavit shall be           

11  on a form prescribed by the department of treasury.  Beginning in           

12  1995, 1 copy of the affidavit shall be retained by the owner, 1             

13  copy shall be retained by the local tax collecting unit until any           

14  appeal or audit period under this act has expired, and 1 copy               

15  shall be forwarded to the department of treasury pursuant to                

16  subsection (4), together with all information submitted under               

17  subsection (18) for a cooperative housing corporation.  Beginning           

18  in 1995, the affidavit shall require the owner claiming the                 

19  exemption to indicate if that owner has claimed another exemption           

20  on property in this state that is not rescinded.  If the                    

21  affidavit requires an owner to include a social security number,            

22  that owner's number is subject to the disclosure restrictions in            

23  1941 PA 122, MCL 205.1 to 205.31.  If an owner of property filed            

24  an affidavit for a homestead exemption under this section before            

25  January 1, 2004, that affidavit shall be considered the affidavit           

26  required under this subsection for a principal residence                    

27  exemption and that exemption shall remain in effect until                   

1   rescinded as provided in this section.

2       (3) A husband and wife who are required to file or who do                   

3   file a joint Michigan income tax return are entitled to not more            

4   than 1  homestead  exemption under this section.                            

5       (4) Upon receipt of an affidavit filed under subsection (2)                 

6   and unless the claim is denied under subsection (6), the assessor           

7   shall exempt the property from the collection of the tax levied             

8   by a local school district for school operating purposes to the             

9   extent provided under section 1211 of the revised school code,              

10  1976 PA 451, MCL 380.1211, as provided in subsection (1) until              

11  December 31 of the year in which the property is transferred or             

12  is no longer a  homestead principal residence as defined in                

13  section 7dd.  The local tax collecting unit shall forward copies            

14  of affidavits to the department of treasury according to a                  

15  schedule prescribed by the department of treasury.                          

16      (5) Not more than 90 days after exempted property is no                     

17  longer used as a  homestead principal residence by the owner               

18  claiming an exemption, that owner shall rescind the claim of                

19  exemption by filing with the local tax collecting unit a                    

20  rescission form prescribed by the department of treasury.                   

21  Beginning October 1, 1994, an owner who fails to file a                     

22  rescission as required by this subsection is subject to a penalty           

23  of $5.00 per day for each separate failure beginning after the 90           

24  days have elapsed, up to a maximum of $200.00.  This penalty                

25  shall be collected under 1941 PA 122, MCL 205.1 to 205.31, and              

26  shall be deposited in the state school aid fund established in              

27  section 11 of article IX of the state constitution of 1963.  This           

1   penalty may be waived by the department of treasury.                        

2       (6) If the assessor of the local tax collecting unit believes               

3   that the property for which an exemption is claimed is not the              

4   homestead principal residence of the owner claiming the                   

5   exemption, effective for taxes levied after 1994 the assessor may           

6   deny a new or existing claim by notifying the owner and the                 

7   department of treasury in writing of the reason for the denial              

8   and advising the owner that the denial may be appealed to the               

9   department of treasury within 35 days after the date of the                 

10  notice.  The denial shall be made on a form prescribed by the               

11  department of treasury.  If the assessor of the local tax                   

12  collecting unit believes that the property for which the                    

13  exemption is claimed is not the  homestead principal residence

14  of the owner claiming the exemption, for taxes levied in 1994 the           

15  assessor may send a recommendation for denial for any affidavit             

16  that is forwarded to the department of treasury stating the                 

17  reasons for the recommendation.  If the assessor of the local tax           

18  collecting unit believes that the property for which the                    

19  exemption is claimed is not the  homestead principal residence

20  of the owner claiming the exemption and has not denied the claim,           

21  for taxes levied after 1994 the assessor shall include a                    

22  recommendation for denial with any affidavit that is forwarded to           

23  the department of treasury or, for an existing claim, shall send            

24  a recommendation for denial to the department of treasury,                  

25  stating the reasons for the recommendation.                                 

26      (7) The department of treasury shall determine if the                       

27  property is the  homestead principal residence of the owner                

1   claiming the exemption.  The department of treasury may review              

2   the validity of exemptions for the current calendar year and for            

3   the 3 immediately preceding calendar years.  If the department of           

4   treasury determines that the property is not the  homestead

5   principal residence of the owner claiming the exemption, the                

6   department shall send a notice of that determination to the local           

7   tax collecting unit and to the owner of the property claiming the           

8   exemption, indicating that the claim for exemption is denied,               

9   stating the reason for the denial, and advising the owner                   

10  claiming the exemption of the right to appeal the determination             

11  to the department of treasury and what those rights of appeal               

12  are.  The department of treasury may issue a notice denying a               

13  claim if an owner fails to respond within 30 days of receipt of a           

14  request for information from that department.  An owner may                 

15  appeal the denial of a claim of exemption to the department of              

16  treasury within 35 days of receipt of the notice of denial.  An             

17  appeal to the department of treasury shall be conducted according           

18  to the provisions for an informal conference in section 21 of               

19  1941 PA 122, MCL 205.21.  Within 10 days after acknowledging an             

20  appeal of a denial of a claim of exemption, the department of               

21  treasury shall notify the assessor and the treasurer for the                

22  county in which the property is located that an appeal has been             

23  filed.  Upon receipt of a notice that the department of treasury            

24  has denied a claim for exemption, the assessor shall remove the             

25  exemption of the property and, if the tax roll is in the local              

26  tax collecting unit's possession, amend the tax roll to reflect             

27  the denial and the local treasurer shall issue a corrected tax              

1   bill for previously unpaid taxes with interest and penalties                

2   computed based on the interest and penalties that would have                

3   accrued from the date the taxes were originally levied if there             

4   had not been an exemption.  If the tax roll is in the county                

5   treasurer's possession, the tax roll shall be amended to reflect            

6   the denial and the county treasurer shall prepare and submit a              

7   supplemental tax bill for any additional taxes, together with any           

8   interest and penalties.  For taxes levied in 1994 only, the                 

9   county treasurer shall waive any interest and penalties due if              

10  the owner pays the supplemental tax bill not more than 30 days              

11  after the owner receives the supplemental tax bill.  Interest and           

12  penalties shall not be assessed for any period before February              

13  14, 1995.  However, if the property has been transferred to a               

14  bona fide purchaser before additional taxes were billed to the              

15  seller as a result of the denial of a claim for exemption, the              

16  taxes, interest, and penalties shall not be billed to the bona              

17  fide purchaser, and the local tax collecting unit if the local              

18  tax collecting unit has possession of the tax roll or the county            

19  treasurer if the county has possession of the tax roll shall                

20  notify the department of treasury of the amount of tax due and              

21  interest through the date of that notification.  The department             

22  of treasury shall then assess the owner who claimed the                     

23  homestead property tax  exemption under this section for the tax           

24  and interest plus penalty accruing as a result of the denial of             

25  the claim for exemption, if any, as for unpaid taxes provided               

26  under 1941 PA 122, MCL 205.1 to 205.31, and shall deposit any               

27  tax, interest, or penalty collected into the state school aid               

1   fund.                                                                       

2       (8) An owner may appeal a final decision of the department of               

3   treasury to the residential and small claims division of the                

4   Michigan tax tribunal within 35 days of that decision.  An                  

5   assessor may appeal a final decision of the department of                   

6   treasury to the residential and small claims division of the                

7   Michigan tax tribunal within 35 days of that decision if the                

8   assessor denied the exemption under subsection (6), or, for taxes           

9   levied in 1994 only, the assessor forwarded a recommendation for            

10  denial to the department of treasury under subsection (6).  An              

11  owner is not required to pay the amount of tax in dispute in                

12  order to appeal a denial of a claim of exemption to the                     

13  department of treasury or to receive a final determination of the           

14  residential and small claims division of the Michigan tax                   

15  tribunal.  However, interest and penalties except as provided in            

16  subsection (7), if any, shall accrue and be computed based on the           

17  interest and penalties that would have accrued from the date the            

18  taxes were originally levied as if there had not been an                    

19  exemption.                                                                  

20      (9) An affidavit filed by an owner for  a homestead the                    

21  exemption under this section rescinds all previous exemptions               

22  filed by that owner for any other  homestead property.  The                

23  department of treasury shall notify the assessor of the local tax           

24  collecting unit in which the property for which a previous                  

25  exemption was claimed is located that the previous exemption is             

26  rescinded by the subsequent affidavit.  Upon receipt of notice              

27  that an exemption is rescinded, the assessor of the local tax               

1   collecting unit shall remove the exemption effective December 31            

2   of the year in which the property is transferred or is no longer            

3   a  homestead principal residence as defined in section 7dd.  The           

4   assessor of the local tax collecting unit in which that property            

5   is located shall notify the treasurer in possession of the tax              

6   roll for a year for which the exemption is rescinded.  If the tax           

7   roll is in the local tax collecting unit's possession, the tax              

8   roll shall be amended to reflect the rescission and the local               

9   treasurer shall prepare and issue a corrected tax bill for                  

10  previously unpaid taxes with interest and penalties computed                

11  based on the interest and penalties that would have accrued from            

12  the date the taxes were originally levied if there had not been             

13  an exemption for that year.  If the tax roll is in the county               

14  treasurer's possession, the tax roll shall be amended to reflect            

15  the rescission and the county treasurer shall prepare and submit            

16  a supplemental tax bill for any additional taxes, together with             

17  any interest and penalties.  However, if the property has been              

18  transferred to a bona fide purchaser, the taxes, interest, and              

19  penalties shall not be billed to the bona fide purchaser, and the           

20  local tax collecting unit if the local tax collecting unit has              

21  possession of the tax roll or the county treasurer if the county            

22  has possession of the tax roll shall notify the department of               

23  treasury of the amount of tax due and interest through the date             

24  of that notification.  The department of treasury shall then                

25  assess the owner who received the  homestead property tax

26  exemption under this section when the property was not a                    

27  homestead principal residence as defined in section 7dd for the           

1   tax and interest plus penalty accruing, if any, as for unpaid               

2   taxes provided under 1941 PA 122, MCL 205.1 to 205.31, and shall            

3   deposit any tax, interest, or penalty collected into the state              

4   school aid fund.                                                            

5       (10) An owner of property for which a claim of exemption is                 

6   rescinded may appeal that rescission with either the July or                

7   December board of review in either the year for which the                   

8   exemption is rescinded or in the immediately succeeding year.  If           

9   an appeal of a rescission of a claim for exemption is received              

10  not later than 5 days prior to the date of the December board of            

11  review, the local tax collecting unit shall convene a December              

12  board of review and consider the appeal pursuant to this section            

13  and section 53b.  An owner of property for which a claim of                 

14  exemption is rescinded may appeal the decision of the board of              

15  review to the residential and small claims division of the                  

16  Michigan tax tribunal within 35 days of that decision.                      

17      (11) If the  homestead property is part of a unit in a                     

18  multiple-unit dwelling or a dwelling unit in a multiple-purpose             

19  structure, an owner shall claim an exemption for only that                  

20  portion of the total taxable value of the property used as the              

21  homestead principal residence of that owner in a manner                   

22  prescribed by the department of treasury.  If a portion of a                

23  parcel for which the owner claims an exemption is used for a                

24  purpose other than as a  homestead principal residence, the                

25  owner shall claim an exemption for only that portion of the                 

26  taxable value of the property used as the  homestead principal             

27  residence of that owner in a manner prescribed by the department            

1   of treasury.                                                                

2       (12) When a county register of deeds records a transfer of                  

3   ownership of a property, he or she shall notify the local tax               

4   collecting unit in which the property is located of the                     

5   transfer.                                                                   

6       (13) The department of treasury shall make available the                    

7   affidavit forms and the forms to rescind an exemption, which may            

8   be on the same form, to all city and township assessors, county             

9   equalization officers, county registers of deeds, and closing               

10  agents.  A person who prepares a closing statement for the sale             

11  of property shall provide affidavit and rescission forms to the             

12  buyer and seller at the closing and, if requested by the buyer or           

13  seller after execution by the buyer or seller, shall file the               

14  forms with the local tax collecting unit in which the property is           

15  located.  If a closing statement preparer fails to provide                  

16  homestead  exemption affidavit and rescission forms to the buyer           

17  and seller, or fails to file the affidavit and rescission forms             

18  with the local tax collecting unit if requested by the buyer or             

19  seller, the buyer may appeal to the department of treasury within           

20  30 days of notice to the buyer that an exemption was not                    

21  recorded.  If the department of treasury determines that the                

22  buyer qualifies for the exemption, the department of treasury               

23  shall notify the assessor of the local tax collecting unit that             

24  the exemption is granted and the assessor of the local tax                  

25  collecting unit or, if the tax roll is in the possession of the             

26  county treasurer, the county treasurer shall correct the tax roll           

27  to reflect the exemption.  This subsection does not create a                

1   cause of action at law or in equity against a closing statement             

2   preparer who fails to provide  homestead  exemption affidavit and           

3   rescission forms to a buyer and seller or who fails to file the             

4   affidavit and rescission forms with the local tax collecting unit           

5   when requested to do so by the buyer or seller.                             

6       (14) An owner who owned and occupied a  homestead principal                

7   residence on May 1 for which the exemption was not on the tax               

8   roll may file an appeal with the July board of review or December           

9   board of review in the year for which the exemption was claimed             

10  or the immediately succeeding 3 years.  If an appeal of a claim             

11  for exemption that was not on the tax roll is received not later            

12  than 5 days prior to the date of the December board of review,              

13  the local tax collecting unit shall convene a December board of             

14  review and consider the appeal pursuant to this section and                 

15  section 53b.                                                                

16      (15) If the assessor or treasurer of the local tax collecting               

17  unit believes that the department of treasury erroneously denied            

18  a claim for exemption, the assessor or treasurer may submit                 

19  written information supporting the owner's claim for exemption to           

20  the department of treasury within 35 days of the owner's receipt            

21  of the notice denying the claim for exemption.  If, after                   

22  reviewing the information provided, the department of treasury              

23  determines that the claim for exemption was erroneously denied,             

24  the department of treasury shall grant the exemption and the tax            

25  roll shall be amended to reflect the exemption.                             

26      (16) If granting the exemption under this section results in                

27  an overpayment of the tax, a rebate, including any interest paid,           

1   shall be made to the taxpayer by the local tax collecting unit if           

2   the local tax collecting unit has possession of the tax roll or             

3   by the county treasurer if the county has possession of the tax             

4   roll within 30 days of the date the exemption is granted.  The              

5   rebate shall be without interest.                                           

6       (17) If an exemption under this section is erroneously                      

7   granted, an owner may request in writing that the department of             

8   treasury withdraw the exemption.  If an owner requests that an              

9   exemption be withdrawn, the department of treasury shall issue an           

10  order notifying the local assessor that the exemption issued                

11  under this section has been denied based on the owner's request.            

12  If an exemption is withdrawn, the property that had been subject            

13  to that exemption shall be immediately placed on the tax roll by            

14  the local tax collecting unit if the local tax collecting unit              

15  has possession of the tax roll or by the county treasurer if the            

16  county has possession of the tax roll as though the exemption had           

17  not been granted.  A corrected tax bill shall be issued for the             

18  tax year being adjusted by the local tax collecting unit if the             

19  local tax collecting unit has possession of the tax roll or by              

20  the county treasurer if the county has possession of the tax                

21  roll.  If an owner requests that an exemption under this section            

22  be withdrawn before that owner is contacted in writing by either            

23  the local assessor or the department of treasury regarding that             

24  owner's eligibility for the exemption and that owner pays the               

25  corrected tax bill issued under this subsection within 30 days              

26  after the corrected tax bill is issued, that owner is not liable            

27  for any penalty or interest on the additional tax.  An owner who            

1   pays a corrected tax bill issued under this subsection more than            

2   30 days after the corrected tax bill is issued is liable for the            

3   penalties and interest that would have accrued if the exemption             

4   had not been granted from the date the taxes were originally                

5   levied.                                                                     

6       (18) For tax years beginning on and after January 1, 1994, a                

7   cooperative housing corporation is entitled to a full or partial            

8   exemption under this section for the tax year in which the                  

9   cooperative housing corporation files all of the following with             

10  the local tax collecting unit in which the cooperative housing              

11  corporation is located if filed on or before May 1 of the tax               

12  year, or for the tax year following the year in which all of the            

13  following are filed if filed after May 1 of the tax year:                   

14      (a) An affidavit form.                                                      

15      (b) A statement of the total number of units owned by the                   

16  cooperative housing corporation and occupied as the principal               

17  residence of a tenant stockholder as of the date of the filing              

18  under this subsection.                                                      

19      (c) A list that includes the name, address, and social                      

20  security number of each tenant stockholder of the cooperative               

21  housing corporation occupying a unit in the cooperative housing             

22  corporation as his or her principal residence as of the date of             

23  the filing under this subsection.                                           

24      (d) A statement of the total number of units of the                         

25  cooperative housing corporation on which an exemption under this            

26  section was claimed and that were transferred in the tax year               

27  immediately preceding the tax year in which the filing under this           

1   section was made.                                                           

2       Sec. 7dd.  As used in sections 7cc and 7ee:                                 

3   (a) "Homestead" means that portion of a dwelling or unit in                 

4   a multiple-unit dwelling that is subject to ad valorem taxes and            

5   is owned and occupied as a principal residence by an owner of the           

6   dwelling or unit.  Homestead also includes all of an owner's                

7   unoccupied property classified as residential that is adjoining             

8   or contiguous to the dwelling subject to ad valorem taxes and               

9   that is owned and occupied as a principal residence by the                  

10  owner.  Contiguity is not broken by a road, a right-of-way, or              

11  property purchased or taken under condemnation proceedings by a             

12  public utility for power transmission lines if the 2 parcels                

13  separated by the purchased or condemned property were a single              

14  parcel prior to the sale or condemnation.  Homestead also                   

15  includes any portion of a principal residence of an owner that is           

16  rented or leased to another person as a residence as long as that           

17  portion of the principal residence that is rented or leased is              

18  less than 50% of the total square footage of living space in that           

19  principal residence.  Homestead also includes a life care                   

20  facility registered under the living care disclosure act, Act               

21  No. 440 of the Public Acts of 1976, being sections 554.801 to               

22  554.844 of the Michigan Compiled Laws.  Homestead also includes             

23  property owned by a cooperative housing corporation and occupied            

24  as a principal residence by tenant stockholders.

25  (a)  (b)  "Owner" means any of the following:                               

26                                                                               (i) A person who owns property or who is purchasing property                        

27  under a land contract.                                                      

1       (ii) A person who is a partial owner of property.                            

2       (iii) A person who owns property as a result of being a                      

3   beneficiary of a will or trust or as a result of intestate                  

4   succession.                                                                 

5       (iv) A person who owns or is purchasing a dwelling on leased                 

6   land.                                                                       

7       (v) A person holding a life lease in property previously sold               

8   or transferred to another.                                                  

9       (vi) A grantor who has placed the property in a revocable                    

10  trust or a qualified personal residence trust.                              

11      (vii) A cooperative housing corporation.                                     

12      (viii) A facility registered under  Act No. 440 of the Public                 

13  Acts of 1976 the living care disclosure act, 1976 PA 440, MCL              

14  554.801 to 554.844.                                                         

15  (b)  (c)  "Person", for purposes of defining owner as used in               

16  section 7cc, means an individual and for purposes of defining               

17  owner as used in section 7ee means an individual, partnership,              

18  corporation, limited liability company, association, or other               

19  legal entity.                                                               

20  (c)  (d)  "Principal residence" means the 1 place where a                   

21  person has his or her true, fixed, and permanent home to which,             

22  whenever absent, he or she intends to return and that shall                 

23  continue as a principal residence until another principal                   

24  residence is established.  Principal residence includes only that           

25  portion of a dwelling or unit in a multiple-unit dwelling that is           

26  subject to ad valorem taxes and that is owned and occupied by an            

27  owner of the dwelling or unit.  Principal residence also includes           

1   all of an owner's unoccupied property classified as residential             

2   that is adjoining or contiguous to the dwelling subject to ad               

3   valorem taxes and that is owned and occupied by the owner.                  

4   Contiguity is not broken by a road, a right-of-way, or property             

5   purchased or taken under condemnation proceedings by a public               

6   utility for power transmission lines if the 2 parcels separated             

7   by the purchased or condemned property were a single parcel prior           

8   to the sale or condemnation.  Principal residence also includes             

9   any portion of a dwelling or unit of an owner that is rented or             

10  leased to another person as a residence as long as that portion             

11  of the dwelling or unit that is rented or leased is less than 50%           

12  of the total square footage of living space in that dwelling or             

13  unit.  Principal residence also includes a life care facility               

14  registered under the living care disclosure act, 1976 PA 440, MCL           

15  554.801 to 554.844.  Principal residence also includes property             

16  owned by a cooperative housing corporation and occupied by tenant           

17  stockholders.

18  (d)  (e)  "Qualified agricultural property" means unoccupied                

19  property and related buildings classified as agricultural, or               

20  other unoccupied property and related buildings located on that             

21  property devoted primarily to agricultural use as defined in                

22  section 36101 of  part 361 (farmland and open space preservation)           

23  of  the natural resources and environmental protection act,  Act            

24  No. 451 of the Public Acts of 1994, being section 324.36101 of              

25  the Michigan Compiled Laws 1994 PA 451, MCL 324.36101.  Related            

26  buildings include a residence occupied by a person employed in or           

27  actively involved in the agricultural use and who has not claimed           

1   a  homestead principal residence exemption on other property.              

2   Property used for commercial storage, commercial processing,                

3   commercial distribution, commercial marketing, or commercial                

4   shipping operations or other commercial or industrial purposes is           

5   not qualified agricultural property.  A parcel of property is               

6   devoted primarily to agricultural use only if more than 50% of              

7   the parcel's acreage is devoted to agricultural use.  An owner              

8   shall not receive an exemption for that portion of the total                

9   state equalized valuation of the property that is used for a                

10  commercial or industrial purpose or that is a residence that is             

11  not a related building.                                                     

12      Sec. 24c.  (1) The assessor shall give to each owner or                     

13  person or persons listed on the assessment roll of the property a           

14  notice by first-class mail of an increase in the tentative state            

15  equalized valuation or the tentative taxable value for the year.            

16  The notice shall specify each parcel of property, the tentative             

17  taxable value for the current year and, beginning in 1996, the              

18  taxable value for the immediately preceding year.  The notice               

19  shall also specify the time and place of the meeting of the board           

20  of review.  Beginning in 1996, the notice shall also specify the            

21  difference between the property's tentative taxable value in the            

22  current year and the property's taxable value in the immediately            

23  preceding year.                                                             

24      (2) The notice shall include, in addition to the information                

25  required by subsection (1), all of the following:                           

26      (a) The state equalized valuation for the immediately                       

27  preceding year.                                                             

1       (b) The tentative state equalized valuation for the current                 

2   year.                                                                       

3       (c) The net change between the tentative state equalized                    

4   valuation for the current year and the state equalized valuation            

5   for the immediately preceding year.                                         

6       (d) The classification of the property as defined by section                

7   34c.                                                                        

8       (e) The inflation rate for the immediately preceding year as                

9   defined in section 34d.                                                     

10      (f) A statement provided by the state tax commission                        

11  explaining the relationship between state equalized valuation and           

12  taxable value.  Beginning in 1996, if the assessor believes that            

13  a transfer of ownership has occurred in the immediately preceding           

14  year, the statement shall state that the ownership was                      

15  transferred and that the taxable value of that property is the              

16  same as the state equalized valuation of that property.                     

17      (3) When required by the income tax act of 1967, 1967 PA 281,               

18  MCL 206.1 to 206.532, the assessment notice shall include or be             

19  accompanied by information or forms prescribed by the income tax            

20  act of 1967, 1967 PA 281, MCL 206.1 to 206.532.                             

21      (4) The assessment notice shall be addressed to the owner                   

22  according to the records of the assessor and mailed not less than           

23  10 days before the meeting of the board of review.  The failure             

24  to send or receive an assessment notice does not invalidate an              

25  assessment roll or an assessment on that property.                          

26      (5) The tentative state equalized valuation shall be                        

27  calculated by multiplying the assessment by the tentative                   

1   equalized valuation multiplier.  If the assessor has made                   

2   assessment adjustments that would have changed the tentative                

3   multiplier, the assessor may recalculate the multiplier for use             

4   in the notice.                                                              

5       (6) The state tax commission shall prepare a model assessment               

6   notice form that shall be made available to local units of                  

7   government.                                                                 

8       (7) Beginning in  1995 2004, the assessment notice under                   

9   subsection (1) shall include the following statement:                       

10       "If you purchased your  homestead principal                           

11       residence after May 1 last year, to claim the                          

12   homestead principal residence exemption, if you                      

13       have not already done so, you are required to file an                  

14       affidavit before May 1.  You are not required to file                  

15       an affidavit to claim a principal residence exemption                  

16       if you previously filed an affidavit for a homestead                   

17       exemption.".                                                           

18      (8) For taxes levied after December 31, 2003, the assessment                

19  notice under subsection (1) shall separately state the state                

20  equalized valuation and taxable value for any leasehold                     

21  improvements.                                                               

22      Sec. 27d.  Not later than the fourth Monday in June in each                 

23  year, the county equalization director for each county shall                

24  report all of the following to the state tax commission on a form           

25  prepared by the state tax commission:                                       

26      (a) Total taxable value of all property in the county as of                 

27  the fourth Monday in May in that year.                                      

1       (b) Taxable value for each separately equalized class of                    

2   property.                                                                   

3       (c) Total taxable value of all property in the county for                   

4   which a  homestead principal residence exemption is granted                

5   under section 7cc or a qualified agricultural property exemption            

6   is granted under section 7ee.                                               

7       (d) Total taxable value of all property in the county for                   

8   which a  homestead principal residence exemption has not been              

9   granted under section 7cc and a qualified agricultural property             

10  exemption has not been granted under section 7ee.                           

11      Sec. 120.  (1) A person claiming an exemption under                         

12  section 7cc shall not do any of the following:                              

13      (a) Make a false or fraudulent affidavit claiming an                        

14  exemption or a false statement on an affidavit claiming an                  

15  exemption.                                                                  

16      (b) Aid, abet, or assist another in an attempt to wrongfully                

17  obtain an exemption.                                                        

18      (c) Make or permit to be made for himself or herself or for                 

19  any other person a false affidavit claiming an exemption or a               

20  false statement on an affidavit claiming an exemption, either in            

21  whole or in part.                                                           

22      (d) Fail to rescind an exemption after the property subject                 

23  to that exemption is no longer a  homestead principal residence

24  as defined in section 7dd.                                                  

25      (2) A person who violates a provision of subsection (1) with                

26  the intent to wrongfully obtain or attempt to obtain an exemption           

27  under section 7cc is guilty of a misdemeanor punishable by                  

1   imprisonment of not more than 1 year and punishable by a fine of            

2   not more than $5,000.00 or public service of not more than 1,500            

3   hours, or both.                                                             

4       (3) In addition to the penalties provided in subsection (2),                

5   a person who knowingly swears to or verifies an affidavit                   

6   claiming an exemption under section 7cc, or an affidavit claiming           

7   any exemption under section 7cc that contains a false or                    

8   fraudulent statement, with the intent to aid, abet, or assist in            

9   defrauding this state or a political subdivision of this state,             

10  is guilty of perjury, a misdemeanor punishable by imprisonment of           

11  not more than 1 year and punishable by a fine of not more than              

12  $5,000.00 or public service of not more than 1,500 hours, or                

13  both.                                                                       

14      (4) A person who does not violate a provision of                            

15  subsection (1), but who knowingly violates any other provision of           

16  this act with the intent to defraud this state or a political               

17  subdivision of this state, is guilty of a misdemeanor punishable            

18  by a fine of not more than $1,000.00 or public service of not               

19  more than 500 hours, or both.                                               

20      (5) The attorney general and the prosecuting attorney of each               

21  county of this state have concurrent power to enforce this act.             

22      (6) The penalty provisions set forth in subsections (2), (3),               

23  and (4) do not apply to a violation of subsection (1) or any                

24  other provision of this act occurring before December 31, 1995.             

25      Enacting section 1.  This amendatory act takes effect                       

26  January 1, 2004.                                                            

27      Enacting section 2.  This amendatory act does not take                      

1   effect unless all of the following bills of the 92nd Legislature            

2   are enacted into law:                                                       

3       (a) Senate Bill No. 129.                                                    

4       (b) Senate Bill No. 130.                                                    

5       (c) Senate Bill No. 131.                                                    

6       (d) Senate Bill No. 132.                                                    

7       (e) Senate Bill No. 134.                                                    

8       (f) Senate Bill No. 135.                                                    

9       (g) Senate Bill No. 136.