SB-0065, As Passed Senate, December 14, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 65

     A bill to amend 1893 PA 206, entitled

"The general property tax act,"

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

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 7kk. (1) The governing body of a local tax collecting

unit may adopt a resolution to exempt from the collection of taxes

under this act eligible nonprofit housing property. The clerk of

the local tax collecting unit shall notify in writing the assessor

of the local tax collecting unit and the legislative body of each

taxing unit that levies ad valorem property taxes in the local tax

collecting unit. Before acting on the resolution, the governing

body of the local tax collecting unit shall afford the assessor and

a representative of the affected taxing units an opportunity for a

hearing.

     (2) The exemption under this section is effective on the

December 31 immediately succeeding the adoption of the resolution

by the governing body of the local tax collecting unit or the

issuance of a building permit for the eligible nonprofit housing

property, whichever is later. The exemption under this section

shall continue in effect for 2 years, until the eligible nonprofit

housing property is occupied by a low-income person under a lease

agreement, or until there is a transfer of ownership of the

eligible nonprofit housing property, whichever occurs first. A copy

of the resolution shall be filed with the state tax commission.

     (3) As used in this section:

     (a) "Charitable nonprofit housing organization" means a

charitable nonprofit organization the primary purpose of which is

the construction or renovation of residential housing for

conveyance to a low-income person.

     (b) "Eligible nonprofit housing property" means a single

family dwelling or duplex owned by a charitable nonprofit housing

organization, the ownership of which the charitable nonprofit

housing organization intends to transfer to a low-income person

after construction or renovation of the single family dwelling or

duplex is completed to be used as that low-income person's

principal residence.

     (c) "Family income" and "statewide median gross income" mean

those terms as defined in section 11 of the state housing

development authority act of 1966, 1966 PA 346, MCL 125.1411.

     (d) "Low-income person" means a person with a family income of

not more than 80% of the statewide median gross income who is

eligible to participate in the charitable nonprofit housing

organization's program based on criteria established by the

charitable nonprofit housing organization.

     (e) "Principal residence" means property exempt as a principal

residence under section 7cc.