August 13, 2008, Introduced by Rep. Sak and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 2 (MCL 211.2), as amended by 2002 PA 620, and
by adding section 2b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) For the purpose of taxation, real property
includes all of the following:
(a) All land within this state, all buildings and fixtures on
the land, and all appurtenances to the land, except as expressly
exempted by law.
(b) All real property owned by this state or purchased or
condemned for public highway purposes by any board, officer,
commission, or department of this state and sold on land contract,
notwithstanding the fact that the deed has not been executed
transferring title.
(c) For taxes levied after December 31, 2002, buildings and
improvements located upon leased real property, except buildings
and improvements exempt under section 9f or improvements assessable
under section 8(h), if the value of the buildings or improvements
is not otherwise included in the assessment of the real property.
However, buildings and improvements located on leased real property
shall not be treated as real property unless they would be treated
as real property if they were located on real property owned by the
taxpayer.
(2)
The Except as otherwise
provided in section 2b, the
taxable status of persons and real and personal property for a tax
year shall be determined as of each December 31 of the immediately
preceding year, which is considered the tax day, any provisions in
the charter of any city or village to the contrary notwithstanding.
An assessing officer is not restricted to any particular period in
the preparation of the assessment roll but may survey, examine, or
review property at any time before or after the tax day.
(3) Notwithstanding a provision to the contrary in any law, if
real property is acquired for public purposes by purchase or
condemnation, all general property taxes, but not penalties, levied
during the 12 months immediately preceding, but not including, the
day title passes to the public agency shall be prorated in
accordance with this subsection. The seller or condemnee is
responsible for the portion of taxes from the levy date or dates
to, but not including, the day title passes and the public agency
is responsible for the remainder of the taxes. If the date that
title will pass cannot be ascertained definitely and an agreement
in advance to prorate taxes is desirable, an estimated date for the
passage of title may be agreed to. In the absence of an agreement,
the public agency shall compute the proration of taxes as of the
date title passes. The question of proration of taxes shall not be
considered in any condemnation proceeding. As used in this
subsection, "levy date" means the day on which general property
taxes become due and payable. In addition to the portion of taxes
for which the public agency is responsible under the provisions of
this subsection, the public agency is also responsible for all
general property taxes levied on or after the date title passes and
before the property is removed from the tax rolls.
(4) In a real estate transaction between private parties in
the absence of an agreement to the contrary, the seller is
responsible for that portion of the annual taxes levied during the
12 months immediately preceding, but not including, the day title
passes, from the levy date or dates to, but not including, the day
title passes and the buyer is responsible for the remainder of the
annual taxes. As used in this subsection, "levy date" means the day
on which a general property tax becomes due and payable.
Sec. 2b. (1) A local tax collecting unit may, by resolution,
revise the tax day provided in section 2 for 1 or more parcels of
property classified as residential real property under section 34c
if the property suffered a catastrophic loss that rendered the
property uninhabitable after December 31 of the immediately
preceding year.
(2) A resolution adopted under subsection (1) may be
retroactive. If a resolution adopted under subsection (1) is
retroactive, the tax roll shall be amended to reflect the revised
taxable status of the property.