HOUSE BILL No. 5672

 

March 23, 2004, Introduced by Reps. Hune, Tabor, DeRoche, Stahl, Brandenburg, Nofs, Wenke, Stakoe, Ward, Kooiman, Plakas and Hoogendyk and referred to the Committee on Local Government and Urban 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                

                                                                                

3   nonprofit charitable institution solely for the purposes for                

                                                                                

4   which it was incorporated is exempt from the collection of taxes            

                                                                                

5   under this act.                                                             

                                                                                

6       (2) Real or personal property owned and occupied by a                       

                                                                                

7   charitable trust while occupied by that charitable trust solely             

                                                                                

8   for the charitable purposes for which that charitable trust was             

                                                                                

9   established is exempt from the collection of taxes under this               

                                                                                

10  act.                                                                        

                                                                                

11      (3) Real or personal property owned by a nonprofit charitable               

                                                                                


                                                                                

1   institution or charitable trust that is leased, loaned, or                  

                                                                                

2   otherwise made available to another nonprofit charitable                    

                                                                                

3   institution or charitable trust or to a nonprofit hospital or a             

                                                                                

4   nonprofit educational institution that is occupied by that                  

                                                                                

5   nonprofit charitable institution, charitable trust, nonprofit               

                                                                                

6   hospital, or nonprofit educational institution solely for the               

                                                                                

7   purposes for which that nonprofit charitable institution,                   

                                                                                

8   charitable trust, nonprofit hospital, or nonprofit educational              

                                                                                

9   institution was organized or established and that would be exempt           

                                                                                

10  from taxes collected under this act if the real or personal                 

                                                                                

11  property were occupied by the lessor nonprofit charitable                   

                                                                                

12  institution or charitable trust solely for the purposes for which           

                                                                                

13  the lessor charitable nonprofit institution was organized or the            

                                                                                

14  charitable trust was established is exempt from the collection of           

                                                                                

15  taxes under this act.                                                       

                                                                                

16      (4) For taxes levied after December 31, 1997, real or                       

                                                                                

17  personal property owned by a nonprofit charitable institution or            

                                                                                

18  charitable trust that is leased, loaned, or otherwise made                  

                                                                                

19  available to a governmental entity is exempt from the collection            

                                                                                

20  of taxes under this act if all of the following conditions are              

                                                                                

21  satisfied:                                                                  

                                                                                

22      (a) The real or personal property would be exempt from the                  

                                                                                

23  collection of taxes under this act under section 7m if the real             

                                                                                

24  or personal property were owned or were being acquired pursuant             

                                                                                

25  to an installment purchase agreement by the lessee governmental             

                                                                                

26  entity.                                                                     

                                                                                

27      (b) The real or personal property would be exempt from the                  


                                                                                

1   collection of taxes under this act if occupied by the lessor                

                                                                                

2   nonprofit charitable institution or charitable trust solely for             

                                                                                

3   the purposes for which the lessor charitable nonprofit                      

                                                                                

4   institution was organized or the charitable trust was                       

                                                                                

5   established.                                                                

                                                                                

6       (5) If authorized by a resolution of the local tax collecting               

                                                                                

7   unit in which the real or personal property is located, real or             

                                                                                

8   personal property owned by a nonprofit charitable institution               

                                                                                

9   that is occupied and used by the nonprofit charitable                       

                                                                                

10  institution's chief executive officer as his or her principal               

                                                                                

11  residence as a condition of his or her employment and that is               

                                                                                

12  contiguous to real property that contains the nonprofit                     

                                                                                

13  charitable institution's principal place of business is exempt              

                                                                                

14  from the collection of taxes under this act.                                

                                                                                

15      (6) A charitable home of a fraternal or secret society, or a                

                                                                                

16  nonprofit corporation whose stock is wholly owned by a religious            

                                                                                

17  or fraternal society that owns and operates facilities for the              

                                                                                

18  aged and chronically ill and in which the net income from the               

                                                                                

19  operation of the corporation does not inure to the benefit of any           

                                                                                

20  person other than the residents, is exempt from the collection of           

                                                                                

21  taxes under this act.                                                       

                                                                                

22      (7) Real or personal property owned by a nonprofit housing                  

                                                                                

23  corporation is exempt from the collection of taxes under this act           

                                                                                

24  if all of the following conditions are satisfied:                           

                                                                                

25      (a) The nonprofit housing corporation is qualified under                    

                                                                                

26  section 501(c)(3) of the internal revenue code, 26 USC                      

                                                                                

27  501(c)(3).                                                                  


                                                                                

1       (b) The nonprofit housing corporation is organized for the                  

                                                                                

2   purpose of developing, owning, and operating affordable or                  

                                                                                

3   supportive housing programs for the benefit of the public                   

                                                                                

4   generally.                                                                  

                                                                                

5       (c) The nonprofit housing corporation receives funding                      

                                                                                

6   assistance from the United States department of housing and urban           

                                                                                

7   development or under the state housing development authority act            

                                                                                

8   of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c.                            

                                                                                

9       (d) The nonprofit housing corporation is licensed under the                 

                                                                                

10  charitable organizations and solicitations act, 1975 PA 169, MCL            

                                                                                

11  400.271 to 400.294.                                                         

                                                                                

12      (8)  (7)  As used in this section:                                          

                                                                                

13      (a) "Charitable trust" means a charitable trust registered                  

                                                                                

14  under the supervision of trustees for charitable purposes act,              

                                                                                

15  1961 PA 101, MCL 14.251 to 14.266.                                          

                                                                                

16      (b) "Governmental entity" means 1 or more of the following:                 

                                                                                

17                                                                               (i) The federal government or an agency, department,                                

                                                                                

18  division, bureau, board, commission, council, or authority of the           

                                                                                

19  federal government.                                                         

                                                                                

20      (ii) This state or an agency, department, division, bureau,                  

                                                                                

21  board, commission, council, or authority of this state.                     

                                                                                

22      (iii) A county, city, township, village, local or                            

                                                                                

23  intermediate school district, or municipal corporation.                     

                                                                                

24      (iv) A public educational institution, including, but not                    

                                                                                

25  limited to, a local or intermediate school district, a public               

                                                                                

26  school academy, a community college or junior college established           

                                                                                

27  pursuant to section 7 of article VIII of the state constitution             


                                                                                

1   of 1963, or a state 4-year institution of higher education                  

                                                                                

2   located in this state.                                                      

                                                                                

3       (v) Any other authority or public body created under state                  

                                                                                

4   law.                                                                        

                                                                                

5       (c) "Public school academy" means a public school academy                   

                                                                                

6   organized under the revised school code, 1976 PA 451, MCL 380.1             

                                                                                

7   to 380.1852.