HB-5541, As Passed House, December 7, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5541

     A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending section 7o (MCL 211.7o), as amended by 2004 PA 576.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 7o. (1) Real or personal property owned and occupied by a

nonprofit charitable institution while occupied by that nonprofit

charitable institution solely for the purposes for which it was

incorporated is exempt from the collection of taxes under this act.

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

charitable trust while occupied by that charitable trust solely for

the charitable purposes for which that charitable trust was

established is exempt from the collection of taxes under this act.

(3) Real or personal property owned and occupied by a

House Bill No. 5541 (H-3) as amended November 30, 2006

fraternal or veterans organization [whose membership policies do not

 violate the Elliott-Larsen civil rights act, 1976 PA 453, MCL 37.2101 to 37.2804] and used by that fraternal or

veterans organization [ ] for nonprofit charitable

purposes is exempt from the collection of taxes under this act[, except

 taxes levied for school operating purposes under section 1211 of the revised school code, 1976 PA 451, MCL 380.1211].

Property used for commercial or for-profit purposes is presumed not

to be used for nonprofit charitable purposes.

(4)  (3) Real or personal property owned by a nonprofit

charitable institution or charitable trust that is leased, loaned,

or otherwise made available to another nonprofit charitable

institution or charitable trust or to a nonprofit hospital or a

nonprofit educational institution that is occupied by that

nonprofit charitable institution, charitable trust, nonprofit

hospital, or nonprofit educational institution solely for the

purposes for which that nonprofit charitable institution,

charitable trust, nonprofit hospital, or nonprofit educational

institution was organized or established and that would be exempt

from taxes collected under this act if the real or personal

property were occupied by the lessor nonprofit charitable

institution or charitable trust solely for the purposes for which

the lessor charitable nonprofit institution was organized or the

charitable trust was established is exempt from the collection of

taxes under this act.

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

personal property owned by a nonprofit charitable institution or

charitable trust that is leased, loaned, or otherwise made

available to a governmental entity is exempt from the collection of

taxes under this act if all of the following conditions are

satisfied:

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

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

personal property were owned or were being acquired pursuant to an

installment purchase agreement by the lessee governmental entity.

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

collection of taxes under this act if occupied by the lessor

nonprofit charitable institution or charitable trust solely for the

purposes for which the lessor charitable nonprofit institution was

organized or the charitable trust was established.

(6)  (5) Real property owned by a qualified conservation

organization that is held for conservation purposes and that is

open to all residents of this state for educational or recreational

use, including, but not limited to, low-impact, nondestructive

activities such as hiking, bird watching, cross-country skiing, or

snowshoeing is exempt from the collection of taxes under this act.

As used in this subsection, "qualified conservation organization"

means a nonprofit charitable institution or a charitable trust that

meets all of the following conditions:

     (a) Is organized or established, as reflected in its articles

of incorporation or trust documents, for the purpose of acquiring,

maintaining, and protecting nature sanctuaries, nature preserves,

and natural areas in this state, that predominantly contain natural

habitat for fish, wildlife, and plants.

     (b) Is required under its articles of incorporation, bylaws,

or trust documents to hold in perpetuity property acquired for the

purposes described in subdivision (a) unless both of the following

conditions are satisfied:

     (i) That property is no longer suitable for the purposes

described in subdivision (a).

     (ii) The sale of the property is approved by a majority vote of

the members or trustees.

     (c) Its articles of incorporation, bylaws, or trust documents

prohibit any officer, shareholder, board member, employee, or

trustee or the family member of an officer, shareholder, board

member, employee, or trustee from benefiting from the sale of

property acquired for the purposes described in subdivision (a).

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

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

real or personal property owned by a nonprofit charitable

institution that is occupied and used by the nonprofit charitable

institution's chief executive officer as his or her principal

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

contiguous to real property that contains the nonprofit charitable

institution's principal place of business is exempt from the

collection of taxes under this act.

(8)  (7) A charitable home of a fraternal or veterans

organization or secret society, or a nonprofit corporation whose

stock is wholly owned by a religious society or fraternal society

or veterans organization that owns and operates facilities for the

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

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

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

taxes under this act.

(9)  (8) As used in this section:

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

under the supervision of trustees for charitable purposes act, 1961

PA 101, MCL 14.251 to 14.266.

(b) "Fraternal or veterans organization" means an organization

within this state, except a college fraternity or sorority, that

meets all of the following requirements:

     (i) Is not organized for pecuniary profit.

     (ii) Is a branch, lodge, or chapter of a national or state

fraternal or veterans organization.

     (iii) Exists for the common purpose, brotherhood, or other

interests of its members.

(c)  (b) "Governmental entity" means 1 or more of the

following:

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

bureau, board, commission, council, or authority of the federal

government.

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

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

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

school district, or municipal corporation.

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

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

school academy, a community college or junior college established

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

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

this state.

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

law.

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

academy organized under the revised school code, 1976 PA 451, MCL

380.1 to 380.1852.