April 13, 2010, Introduced by Senator SANBORN and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding sections 7pp and 7qq.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7pp. (1) New construction or replacement construction on
eligible property that takes place between the effective date of
the amendatory act that added this section and December 31 in the
immediately succeeding year is exempt from the collection of taxes
under this act.
(2) New construction and replacement construction exempt under
subsection (1) shall not be included in the assessment of the
eligible property until a transfer of ownership of the eligible
property results in an adjustment of the eligible property's
taxable value under section 27a(3).
(3) As used in this section:
(a) "Eligible property" means real property on which is
located an existing structure.
(b) "New construction" and "replacement construction" mean
those terms as defined in section 34d.
Sec. 7qq. (1) New construction on development property that
takes place between the effective date of the amendatory act that
added this section and December 31 in the immediately succeeding
year is exempt from the collection of taxes under this act until
December 30 in the second year immediately succeeding the year in
which this amendatory act took effect or until the new construction
is no longer located on development property, whichever occurs
first.
(2) To claim an exemption under subsection (1), an owner of
development property shall file an affidavit claiming the exemption
with the local tax collecting unit by May 1. The affidavit shall be
on a form prescribed by the department of treasury.
(3) Upon receipt of an affidavit filed under subsection (2),
the assessor shall determine if the real property on which new
construction is located is development property. If the real
property is development property, the assessor shall exempt the new
construction located on that development property from the
collection of taxes under this act for 12 months or until the new
construction is no longer located on development property,
whichever occurs first.
(4) Not more than 90 days after all or a portion of the
exempted new construction is no longer located on development
property, an owner shall rescind the exemption for the new
construction by filing with the local tax collecting unit a
rescission form. The rescission form shall be as prescribed by the
department of treasury.
(5) An owner of exempted new construction that is no longer
located on development property who fails to file a rescission form
as required under subsection (4) is subject to a penalty of $5.00
per day for each separate failure beginning after the 90 days have
elapsed, up to a maximum of $200.00. This penalty shall be
collected under 1941 PA 122, MCL 205.1 to 205.31, and shall be
deposited in the state school aid fund established in section 11 of
article IX of the state constitution of 1963. This penalty may be
waived by the department of treasury.
(6) An owner of new construction that is located on
development property on May 1 for which an exemption was not on the
tax roll may file an appeal with the July or December board of
review in the year the exemption was claimed or the immediately
succeeding year. An owner of new construction that is located on
development property on May 1 for which an exemption was denied by
the assessor in the year the affidavit was filed may file an appeal
with the July board of review for summer taxes or, if there is not
a summer levy of school operating taxes, with the December board of
review.
(7) If the assessor of the local tax collecting unit believes
that new construction for which an exemption has been granted is
not located on development property, the assessor may deny or
modify an existing exemption by notifying the owner in writing at
the time required for providing a notice under section 24c. A
taxpayer may appeal the assessor's determination to the board of
review meeting under section 30. A decision of the board of review
may be appealed to the residential and small claims division of the
Michigan tax tribunal.
(8) If an exemption under this section is erroneously granted,
an owner may request in writing that the local tax collecting unit
withdraw the exemption. If an owner requests that an exemption be
withdrawn, the local assessor shall notify the owner that the
exemption issued under this section has been denied based on that
owner's request. If an exemption is withdrawn, the new construction
that had been subject to that exemption shall be immediately placed
on the tax roll by the local tax collecting unit if the local tax
collecting unit has possession of the tax roll or by the county
treasurer if the county has possession of the tax roll as though
the exemption had not been granted. A corrected tax bill shall be
issued for the tax year being adjusted by the local tax collecting
unit if the local tax collecting unit has possession of the tax
roll or by the county treasurer if the county has possession of the
tax roll. If an owner requests that an exemption under this section
be withdrawn before that owner is contacted in writing by the local
assessor regarding that owner's eligibility for the exemption and
that owner pays the corrected tax bill issued under this subsection
within 30 days after the corrected tax bill is issued, that owner
is not liable for any penalty or interest on the additional tax. An
owner who pays a corrected tax bill issued under this subsection
more than 30 days after the corrected tax bill is issued is liable
for the penalties and interest that would have accrued if the
exemption had not been granted from the date the taxes were
originally levied.
(9) As used in this section:
(a) "Development property" means real property on which no
structure is located on the effective date of the amendatory act
that added this section.
(b) "New construction" means that term as defined in section
34d.