HB-4913, As Passed House, October 5, 2011

SUBSTITUTE FOR

HOUSE BILL NO. 4913

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending section 51108 (MCL 324.51108), as amended by 2008 PA

299.

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. 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),~~ October 8, 2008, 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withdrawn from the operation of this part by 1 of the following: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 average millage rate levied by all townships, excluding

villages, in the county in which the property is located.

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property withdrawn from the operation of this part has been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) 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.

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.

use.

(6) An application to withdraw commercial forestland from the

operation of this part that meets all of the following requirements

shall be granted without payment of the withdrawal application fee

or penalty under this section:

(a) Evidence is submitted to the department that the land met

the legal requirements to be exempt from ad valorem property tax on

tax day for the tax year in which the list application was

submitted and approved and that the land would have met the legal

requirements to be exempt from ad valorem property tax on tax day

for each year that the land was subject to the operation of this

part, if the land had not been subject to the operation of this

part. As used in this subdivision, "tax day" means that term as

provided in section 2.

(b) The application to withdraw is submitted to the department

by the same landowner that owned the land on tax day for the tax

year in which the list application was submitted and that submitted

the application for determination under section 51103.

treasurer for the specific tax that was paid by the state treasurer

to the county treasurer, as provided in section 51106(1), for each

tax year the land was commercial forestland.

(7) ~~(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).

(8) ~~(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.

(9) ~~(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.