HOUSE BILL No. 4224


     February 4, 1997, Introduced by Reps. Dobronski, Brewer, Harder, Willard, Hale, Anthony, Wetters, Prusi, DeHart, Varga, Schermesser, Leland, Gire, Raczkowski, Martinez, Cherry, Hanley, Goschka, Bogardus, McBryde, Callahan and Perricone and referred to the Committee on Tax Policy.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   (MCL 211.1 to 211.157) by adding section 7c.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 7C.  (1) AS USED IN THIS SECTION, "HOMESTEAD" AND

 2    "HOUSEHOLD INCOME" MEAN THOSE TERMS AS DEFINED IN SECTION 508 OF

 3    THE INCOME TAX ACT OF 1967, 1967 PA 281, MCL 206.508.

 4         (2) THE HOMESTEAD OF A PERSON WHO IS 62 YEARS OF AGE OR

 5    OLDER, AND WHOSE HOUSEHOLD INCOME FOR THE IMMEDIATELY PRECEDING

 6    CALENDAR YEAR WAS NOT MORE THAN $20,000.00, IS EXEMPT FROM TAXES

 7    COLLECTED UNDER THIS ACT FOR SCHOOL OPERATING PURPOSES.

 8         (3) A PERSON ELIGIBLE TO CLAIM THE EXEMPTION UNDER THIS SEC-

 9    TION SHALL FILE WITH THE LOCAL ASSESSING OFFICER A CLAIM FOR

10    EXEMPTION, WHICH SHALL BE IN AFFIDAVIT FORM AS PROVIDED BY THE

11    DEPARTMENT OF TREASURY.  THE CLAIM FOR EXEMPTION SHALL BE FILED


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 1    DURING THE PERIOD BEGINNING WITH THE TAX DAY OF EACH YEAR AND

 2    ENDING AT THE TIME OF FINAL ADJOURNMENT OF THE LOCAL BOARD OF

 3    REVIEW.  THE CLAIM FOR EXEMPTION MAY BE USED BY THE LOCAL ASSES-

 4    SOR AND THE LOCAL TREASURER TO DETERMINE ELIGIBILITY FOR THE

 5    EXEMPTION AND THE DEPARTMENT OF TREASURY FOR STATISTICAL OR AUDIT

 6    PURPOSES, BUT SHALL NOT BE OPEN FOR PUBLIC INSPECTION.

 7         (4) WHEN A TAX ROLL THAT INCLUDES PROPERTY FOR WHICH AN

 8    EXEMPTION IS CLAIMED UNDER THIS SECTION IS PLACED IN THE HANDS OF

 9    A CITY, VILLAGE, OR TOWNSHIP TREASURER FOR COLLECTION, THE TREA-

10    SURER SHALL PREPARE A STATEMENT IN A FORM RECOMMENDED BY THE

11    DEPARTMENT OF TREASURY INCLUDING ALL OF THE FOLLOWING:

12         (A) A DESCRIPTION OF EACH PARCEL OF PROPERTY FOR WHICH AN

13    EXEMPTION IS CLAIMED UNDER THIS SECTION.

14         (B) THE NAME AND ADDRESS OF EACH PERSON ENTITLED TO THE

15    EXEMPTION.

16         (C) THE AMOUNT OF TAXES ASSESSED AGAINST EACH PARCEL OF

17    PROPERTY.

18         (D) THE TOTAL AMOUNT OF EXEMPT TAXES.

19         (5) FOR A COOPERATIVE HOUSING CORPORATION, THE TOWNSHIP

20    TREASURER SHALL APPORTION THE TAXABLE VALUE ON WHICH TAXES ARE

21    COMPUTED UNDER THE GENERAL AD VALOREM PROPERTY TAX OF THE WHOLE

22    COOPERATIVE TO THE UNIT FOR WHICH REIMBURSEMENT IS CLAIMED IN THE

23    SAME PROPORTION AS THE TAXABLE VALUE OF THE UNIT FOR WHICH REIM-

24    BURSEMENT IS CLAIMED BEARS TO THE TAXABLE VALUE OF THE

25    COOPERATIVE.

26         (6) THE CITY, VILLAGE, OR TOWNSHIP TREASURER SHALL FORWARD

27    THE STATEMENT TO THE DEPARTMENT OF TREASURY.  UPON VERIFICATION



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 1    OF THE STATEMENT, THE STATE TREASURER SHALL DRAW A WARRANT UPON

 2    THE STATE TREASURY FOR THE TOTAL AMOUNT OF TAX REVENUES LOST BY

 3    THE LOCAL TAXING UNIT AS A RESULT OF THE EXEMPTION ALLOWED BY

 4    THIS SECTION AS SHOWN BY THE STATEMENT AND FORWARD THE WARRANT TO

 5    THAT CITY, VILLAGE, OR TOWNSHIP TREASURER.

 6         (7) THE DEPARTMENT OF TREASURY SHALL ESTIMATE, AS ACCURATELY

 7    AS POSSIBLE, THE AMOUNT OF MONEY NECESSARY TO MEET THE EXPENSE OF

 8    ADMINISTERING THIS SECTION DURING EACH YEAR, AND THE EXPENSE

 9    SHALL BE MET BY A SPECIFIC APPROPRIATION INCLUDED IN THE BUDGET.

10         Enacting section 1.  This amendatory act takes effect

11    December 31, 1997.


































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