HB-6133, As Passed Senate, September 25, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6133

     A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending section 51108 (MCL 324.51108), as amended by 2006 PA

382.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 51108. (1) An owner of a commercial forest may withdraw

his or her land, in whole or in part, from the operation of this

part upon application to the department and payment of the

withdrawal application fee and penalty, as provided in this

section.

     (2) Except as otherwise provided by this section, upon

application to the department to withdraw commercial forestland

from the operation of this part, the applicant shall forward to the

department a withdrawal application fee in the amount of $1.00 per

acre with a minimum withdrawal application fee of $200.00 per

application and a maximum withdrawal application fee of $1,000.00

per application.

     (3) Except as otherwise provided in this section, an

application to withdraw commercial forestland from the operation of

this part shall be granted upon the payment to the township

treasurer in which the commercial forestland is located of a

penalty. Except as provided in subsection (4) For applications to

withdraw commercial forestland filed on or after September 27, 2007

in which the withdrawal penalty has not been paid before the

effective date of the amendatory act that added subdivision (d),

the withdrawal penalty shall be calculated in the following manner:

     (a) Multiply the number of acres of commercial forestland

withdrawn from the operation of this part by the average value per

acre for comparable property acquired within the last 10 years

under subpart 14 of part 21, as determined by the state tax

commission under section 2153. 1 of the following:

     (i) For 2007, 1/2 of the valuation per acre for the county in

which the forestland is located.

     (ii) Beginning in 2008, and for each subsequent year, the

number described in subparagraph (i) adjusted annually by the

inflation rate for each year after 2007.

     (b) Multiply the product of the calculation in subdivision (a)

by the total average millage rate levied by all taxing units

townships, excluding villages, in the local tax collecting unit

county in which the property is located.

     (c) Multiply the product of the calculation in subdivision (b)

by the number of years, to a maximum of 7 years, in which the

property withdrawn from the operation of this part has been

designated as commercial forestland under this part.

     (d) Multiply the product of the calculation in subdivision (c)

by the following:

     (i) 0.2, if the commercial forestland is located in Luce

county.

     (ii) 0.3, if the commercial forestland is located in Grand

Traverse, Manistee, Ottawa, or Wexford county.

     (iii) 0.4, if the commercial forestland is located in

Charlevoix, Chippewa, Emmet, Gladwin, Leelanau, Midland, Oscoda, or

Tuscola county.

     (iv) 0.5, if the commercial forestland is located in Cheboygan,

Delta, Mackinac, Oceana, Otsego, or Schoolcraft county.

     (v) 0.6, if the commercial forestland is located in Alcona,

Alger, Allegan, Alpena, Arenac, Barry, Bay, Benzie, Berrien,

Branch, Calhoun, Cass, Clare, Clinton, Crawford, Dickinson, Eaton,

Genesee, Gogebic, Gratiot, Hillsdale, Houghton, Huron, Ingham,

Ionia, Iosco, Iron, Isabella, Jackson, Kalamazoo, Kalkaska, Kent,

Lapeer, Lenawee, Livingston, Macomb, Marquette, Mecosta, Monroe,

Montcalm, Montmorency, Muskegon, Newaygo, Oakland, Ogemaw, Osceola,

Presque Isle, Roscommon, Saginaw, St. Clair, St. Joseph, Sanilac,

Shiawassee, Van Buren, Washtenaw, or Wayne county.

     (vi) 0.7, if the commercial forestland is located in Antrim,

Baraga, Mason, or Menominee county.

     (vii) 0.8, if the commercial forestland is located in Keweenaw,

Lake, Missaukee, or Ontonagon county.

     (4) For a period of 1 year after the effective date of the

2006 amendments to this section, the withdrawal penalty is as

follows:

     (a) Subject to subdivision (b), the withdrawal penalty that

was in effect immediately prior to the effective date of the 2006

amendments to this section.

     (b) If all of the following occur, an owner of commercial

forestland is not subject to a withdrawal penalty:

     (i) An owner of commercial forestland withdraws his or her land

from the operation of this part as provided in this section.

     (ii) The former commercial forestland is placed on the

assessment roll in the local tax collecting unit in which the

former commercial forestland is located.

     (iii) The owner of the former commercial forestland claims and

is granted an exemption from the tax levied by a local school

district for school operating purposes under section 7jj of the

general property tax act, 1893 PA 206, MCL 211.7jj.

     (4) The department shall publish all of the following on its

website:

     (a) The calculation described in subsection (3)(a)(i) for each

county.

     (b) The adjusted value and the inflation rate described in

subsection (3)(a)(ii) for each county.

     (c) The average millage rate described in subsection (3)(b)

for each county.

     (5) An application to withdraw commercial forestland from the

operation of this part that meets 1 or more of the following

requirements shall be granted without payment of the withdrawal

application fee or penalty under this section:

     (a) Commercial forestland that has been donated to a public

body for public use prior to withdrawal.

     (b) Commercial forestland that has been exchanged for property

belonging to a public body if the property received is designated

as a commercial forest as determined by the department.

     (c) Commercial forestland that has been condemned for public

use.

     (6) The department shall remit the withdrawal application fee

paid pursuant to subsection (2) to the state treasurer for deposit

into the fund. The penalty received by the township treasurer under

subsection (3) shall be distributed by the township treasurer in

the same proportions to the various funds as the ad valorem general

property tax is allocated in the township, except as provided by

section 51109(2).

     (7) If an application to withdraw commercial forestland is

granted, the department shall immediately notify the applicant, the

supervisor of the township, and the register of deeds of the county

in which the lands are located of the action and shall file with

those officials a list of the lands withdrawn.

     (8) As used in this section:

     (a) "Inflation rate" means the lesser of 1.05 or the inflation

rate as defined in section 34d of the general property tax act,

1893 PA 206, MCL 211.34d.

     (b) "Valuation" means the market value as determined by the

state tax commission.