January 25, 2005, Introduced by Senators JELINEK, ALLEN, HARDIMAN, BASHAM and GOSCHKA and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.157) by adding section 7jj.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7jj. (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 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 property 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 property is completed.
(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 60% 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.