November 14, 2006, Introduced by Rep. Kolb and referred to the Committee on Tax Policy.
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 all eligible organic agricultural property
designated in the resolution. The clerk of the local tax collecting
unit shall notify in writing the assessor of the local tax
collecting unit in which the eligible organic agricultural property
is located and the legislative body of each taxing unit that levies
ad valorem property taxes in the local tax collecting unit in which
the eligible organic agricultural property is located. 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 and shall
continue in effect for a period specified in the resolution.
However, a local tax collecting unit may terminate the exemption
under this section if 1 year's written notice is provided to the
owners of all eligible organic agricultural property exempt under
this section. A copy of the resolution shall be filed with the
department of agriculture. A resolution is not effective unless
approved by the department of agriculture as provided in subsection
(3).
(3) Not more than 60 days after receipt of a copy of the
resolution adopted under subsection (1), the department of
agriculture shall verify organic certification and registration of
the eligible organic agricultural property and approve or
disapprove the resolution.
(4) If a resolution exempting eligible organic agricultural
property is adopted under subsection (1) and approved under
subsection (3), the local tax collecting unit shall annually report
to the department of treasury the amount of tax revenue forgone as
a result of the exemption.
(5) As used in this section, "eligible organic agricultural
property" means real property classified as agricultural real
property under section 34c that is annually certified by a United
States department of agriculture or national organic program
accredited certifying agency and annually registered as an organic
producer with the department of agriculture.
Enacting section 1. This amendatory act takes effect January
1, 2007.