SB-0887, As Passed Senate, January 13, 2010
October 7, 2009, Introduced by Senator JANSEN and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 7d (MCL 211.7d), as amended by 2008 PA 585.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7d. (1) Housing owned and operated by a nonprofit
corporation or association, by a limited dividend housing
corporation, or by this state, a political subdivision of this
state, or an instrumentality of this state, for occupancy or use
solely by elderly or disabled families is exempt from the
collection of taxes under this act. For purposes of this section,
housing is considered occupied solely by elderly or disabled
families even if 1 or more of the units is occupied by service
personnel, such as a custodian or nurse.
Senate Bill No. 887 as amended December 17, 2009
(2) An owner of property may claim an exemption under this
section on a form prescribed by the department of treasury. The
assessor of the local tax collecting unit in which the property is
located shall approve or disapprove a claim for exemption under
this section. The assessor shall notify the owner and the
department of treasury in writing of the exemption's approval or
disapproval. <<The department of treasury may deny an exemption under
this section.>> An exemption under this section begins on December 31
of the year in which the exemption is approved under this
subsection
and , subject to subsection (3), shall continue until
the property is no longer used for occupancy or use solely by
elderly or disabled families. <<The owner of property exempt under
this section shall notify the local tax collecting unit in which the property is located and the department of treasury of any change in
the property that would affect the exemption under this section.>>
(3)
If a claim for exemption is approved under subsection (2),
an
owner of the property shall annually submit to the department of
treasury
and to the assessor of the local tax collecting unit in
which
the property is located an affidavit confirming eligibility
for
the exemption under this section. If an affidavit confirming
eligibility
for an exemption under this section is not submitted as
required
under this subsection, the property's exemption is revoked
for
that tax year and the property shall be assessed and shall be
subject
to the collection of taxes as provided in this act. An
affidavit
under this subsection shall be submitted not later than
May
1. The affidavit under this section shall be in a form
prescribed
by the department of treasury.
(3) (4)
If property for which an exemption
is claimed under
this section would have been subject to the collection of taxes
under this act if an exemption had not been granted under this
section,
the appropriate collecting officer shall prepare a
statement
for payment in lieu of taxes on a form prescribed by the
department
of treasury. The statement for payment in lieu of taxes
shall
include all of the following:
(a)
A description of the property exempt under this section.
(b)
The name and address of the corporation, association, or
limited
dividend housing corporation that owns the property exempt
under
this section.
(c)
The base valuation of the property for determination of
the
payment in lieu of taxes. The base valuation of the property
shall
be determined as follows:
(i) For property exempt under this section prior to
the
effective
date of the amendatory act that added this subdivision,
the
property's taxable value on the assessment roll in the 2008 tax
year.
(ii) For property not exempt under this section prior
to the
effective
date of the amendatory act that added this subdivision,
the
taxable value of the property on the assessment roll in the
year
in which a claim for exemption is made under this section or,
for
new construction, the property's taxable value on the
assessment
roll in the year in which construction is completed and
a
certificate of occupancy, or similar document, is issued.
(d)
The total amount of payment in lieu of taxes, calculated
by
multiplying the base valuation determined under subdivision (c)
by
the number of mills levied by all taxing units in the local tax
collecting
unit, excluding any mills that would have been levied
under
all of the following:
(i) Section 1211 of the revised school code, 1976 PA
451, MCL
Senate Bill No. 887 as amended December 17, 2009
380.1211.
(ii) The state education tax act, 1993 PA 331, MCL
211.901 to
211.906.
state treasurer<<, upon verification,>>
shall make a payment in
lieu of taxes,
which shall be in the following amount:
(a) For property exempt under this section before January 1,
2009, the amount of taxes paid on that property for the 2008 tax
year, excluding any mills that would have been levied under all of
the following:
(i) Section 1211 of the revised school code, 1976 PA 451, MCL
380.1211.
(ii) The state education tax act, 1993 PA 331, MCL 211.901 to
211.906.
(b) For property not exempt under this section before January
1, 2009 and for new construction to property exempt under this
section before January 1, 2009, <<the local tax collecting unit shall
calculate, on a form prescribed by the department of treasury,>> a
payment calculated by multiplying
the taxable value of the property <<in the first year for which the
exemption is valid by the number of mills levied in that year
>>by all taxing units in the
local tax collecting unit, excluding any mills that would have been
levied under all of the following:
(i) Section 1211 of the revised school code, 1976 PA 451, MCL
380.1211.
(ii) The state education tax act, 1993 PA 331, MCL 211.901 to
211.906.
(4) (5)
The local tax collecting unit shall forward the
statement
to the department of treasury not later than December 1
of
each tax year. Upon verification of the statement, the state
treasurer
shall draw his or her warrant upon the state treasury for
the
amount described in subsection (4)(c). After examining the
statement,
the state treasurer shall forward the warrants to the
treasurer
of the local tax collecting unit not later than 60 days
after
receipt of the statement. All
payments under subsection (3)
shall be forwarded to the local tax collecting unit by December 15
each year. The department of treasury may require that the local
tax collecting units receive payments under this section through
electronic funds transfer.
(5) (6)
The local tax collecting unit shall
distribute the
amount
received under subsection (5) (4)
in the same manner and in
the same proportions as general ad valorem taxes collected under
this act, excluding any distribution that would have been made
under section 1211 of the revised school code, 1976 PA 451, MCL
380.1211, and the state education tax act, 1993 PA 331, MCL 211.901
to 211.906.
(6) (7)
The state treasurer shall estimate
the amount
necessary to meet the expense of administering the provisions of
this section in each year, and the legislature shall appropriate an
amount sufficient to meet that expense in each year. If
insufficient funds are appropriated to fully pay all payments, the
department of treasury shall prorate the payments made under this
section.
(7) (8)
Property that is used for occupancy
or use solely by
Senate Bill No. 887 as amended December 17, 2009
elderly or disabled families that is eligible for exemption under
this section is not subject to forfeiture, foreclosure, and sale
for taxes returned as delinquent under this act for any year in
which the property was exempt under this section.
(9)
An owner of property exempt under this section before the
effective
date of the amendatory act that added this subsection
shall
submit a claim for exemption under subsection (2) and any
subsequent
affidavits confirming eligibility under subsection (3)
in
order to continue to claim the exemption under this section.
<<(8) The department of treasury has standing to appeal the assessed value, taxable value, state equalized valuation, exempt
status, classification, and all other issues concerning tax liability
for property exempt under this section in the Michigan tax tribunal
and all courts of this state.
(9)>>
(10) As used in this section:
(a) "Disabled person" means a person with disabilities.
(b) "Elderly or disabled families" means families consisting
of 2 or more persons if the head of the household, or his or her
spouse, is 62 years of age or over or is a disabled person, and
includes a single person who is 62 years of age or over or is a
disabled person.
(c) "Elderly person" means that term as defined in section 202
of title II of the housing act of 1959, Public Law 86-372, 12 USC
1701q.
(d) "Housing" means new or rehabilitated structures with 8 or
more residential units in 1 or more of the structures for occupancy
and use by elderly or disabled persons, including essential
contiguous land and related facilities as well as all personal
property of the corporation, association, or limited dividend
housing corporation used in connection with the facilities.
(e) "Limited dividend housing corporation" means a corporation
incorporated or qualified under the laws of this state and chapter
6 of the state housing development authority act of 1966, 1966 PA
346, MCL 125.1481 to 125.1486, or a limited dividend housing
association organized and qualified under chapter 7 of the state
housing development authority act of 1966, 1966 PA 346, MCL
125.1491 to 125.1496, that will rehabilitate and own a housing
facility or project previously qualified, built, or financed under
section 202 of title II of the housing act of 1959, Public Law 86-
372, 12 USC 1701q, section 236 of title II of the national housing
act, chapter 847, 82 Stat. 498, 12 USC 1715z-1, or section 811 of
subtitle B of title VIII of the Cranston-Gonzalez national
affordable housing act, Public Law 101-625, 42 USC 8013.
(f) "New construction" means that term as defined in section
34d.
(g) "Nonprofit corporation or association" means a nonprofit
corporation or association incorporated under the laws of this
state not otherwise exempt from the collection of taxes under this
act, operating a housing facility or project qualified, built, or
financed under section 202 of title II of the housing act of 1959,
Public Law 86-372, 12 USC 1701q, section 236 of title II of the
national housing act, chapter 847, 82 Stat. 498, 12 USC 1715z-1, or
section 811 of subtitle B of title VIII of the Cranston-Gonzalez
national affordable housing act, Public Law 101-625, 42 USC 8013.
(h) "Person with disabilities" means that term as defined in
section 811 of subtitle B of title VIII of the Cranston-Gonzalez
national affordable housing act, Public Law 101-625, 42 USC 8013.
(i) "Residential units" includes 1-bedroom units licensed
under the adult foster care facility licensing act, 1979 PA 218,
Senate Bill No. 887 as amended December 17, 2009
MCL 400.701 to 400.737, for persons who share dining, living, and
bathroom facilities and who have a mental illness, developmental
disability, or a physical disability, as those terms are defined in
the adult foster care facility licensing act, 1979 PA 218, MCL
400.701 to 400.737, or individual self-contained dwellings in an
unlicensed facility. At the time of construction or rehabilitation,
both self-contained dwellings and 1-bedroom units must be financed
either under section 202 of title II of the housing act of 1959,
Public Law 86-372, 12 USC 1701q, or under section 811 of subtitle B
of title VIII of the Cranston-Gonzalez national affordable housing
act, Public Law 101-625, 42 USC 8013.
<<Enacting section 1. This amendatory act takes effect December
31, 2009.>>