December 1, 2005, Introduced by Senators STAMAS, VAN WOERKOM, JELINEK, GARCIA, BIRKHOLZ, JOHNSON, ALLEN and GILBERT and referred to the Committee on Agriculture, Forestry and Tourism.
A bill to impose a state recapture tax on the change in use of
certain qualified forest property; to provide for the
administration of the recapture tax; to prescribe the powers and
duties of certain state and local officers; to provide for the
collection and distribution of the recapture tax; and to prescribe
penalties and provide remedies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"qualified forest property recapture tax act".
Sec. 2. As used in this act:
(a) "Converted by a change in use" means that due to a change
in use the property is no longer qualified forest property as
determined by the assessor of the local tax collecting unit.
(b) "Person" means an individual, partnership, corporation,
limited liability company, association, governmental entity, or
other legal entity.
(c) "Qualified forest property" means that term as defined in
section 7jj of the general property tax act, 1893 PA 206, MCL
211.7jj.
(d) "Recapture tax" means the qualified forest property
recapture tax imposed under this act.
(e) "Treasurer" means the state treasurer.
Sec. 3. (1) Beginning January 1, 2007, the qualified forest
property recapture tax provided under section 4 is imposed as
provided in this section if the property is converted by a change
in use after December 31, 2006.
(2) The recapture tax is the obligation of the person who
owned the property at the time the property was converted by a
change in use. If a recapture tax is imposed on the owner of the
property under this subsection, the recapture tax is a lien on the
property subject to the recapture tax until paid. If the recapture
tax is not paid within 90 days of the date the property was
converted by a change in use, the treasurer may bring a civil
action against the owner of the property as of the date the
property was converted by a change in use. If the recapture tax
remains unpaid on the March 1 in the year immediately succeeding
the year in which the property is converted by a change in use, the
property on which the recapture tax is due shall be returned as
delinquent to the county treasurer of the county in which the
property is located. Property returned as delinquent under this
section, and upon which the recapture tax, interest, penalties, and
fees remain unpaid after the property is returned as delinquent to
the county treasurer, is subject to forfeiture, foreclosure, and
sale for the enforcement and collection of the delinquent taxes as
provided in sections 78 to 79a of the general property tax act,
1893 PA 206, MCL 211.78 to 211.79a.
Sec. 4. The recapture tax under this act shall be imposed at
the following rate:
(a) If the property is converted by a change in use within 20
years after an exemption is first claimed under section 7jj of the
general property tax act, 1893 PA 206, MCL 211.7jj, 100% of the
total amount exempted under section 7jj of the general property tax
act, 1893 PA 206, MCL 211.7jj.
(b) If the property is converted by a change in use 20 or more
years but less than 30 years after an exemption is first claimed
under section 7jj of the general property tax act, 1893 PA 206, MCL
211.7jj, 75% of the total amount exempted under section 7jj of the
general property tax act, 1893 PA 206, MCL 211.7jj.
(c) If the property is converted by a change in use 30 or more
years but less than 40 years after an exemption is first claimed
under section 7jj of the general property tax act, 1893 PA 206, MCL
211.7jj, 50% of the total amount exempted under section 7jj of the
general property tax act, 1893 PA 206, MCL 211.7jj.
(d) If the property is converted by a change in use 40 or more
years after an exemption is first claimed under section 7jj of the
general property tax act, 1893 PA 206, MCL 211.7jj, no recapture
tax is due under this act.
Sec. 5. (1) The recapture tax shall be collected by the county
treasurer and deposited with the treasurer as provided in this
section. By the fifteenth day of each month, the county treasurer
shall, on a form prescribed by the treasurer, itemize the recapture
taxes collected the preceding month and transmit the form and the
recapture taxes collected to the treasurer. The county treasurer
may retain the interest earned on the money collected pursuant to
this act while held by the county treasurer as reimbursement for
the costs incurred by the county in collecting and transmitting the
recapture tax. The money retained by the county treasurer under
this section shall be deposited in the treasury of the county in
which the recapture tax is collected to the credit of the general
fund.
(2) The assessor of the local tax collecting unit shall notify
the county treasurer of the date the property is converted by a
change in use.
Sec. 6. The treasurer shall credit the proceeds of the
recapture tax collected by county treasurers under this act to the
general fund of this state.
Sec. 7. This act shall be administered by the department of
treasury under 1941 PA 122, MCL 205.1 to 205.31.
Enacting section 1. This act does not take effect unless all
of the following bills of the 93rd Legislature are enacted into
law:
(a) Senate Bill No. 912.
(b) Senate Bill No. 914.