HOUSE BILL No. 6045


     September 15, 1998, Introduced by Reps. Voorhees, Sikkema, Jellema, Richner, Scranton and Birkholz and referred to the Committee on Tax Policy.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   by amending section 7d (MCL 211.7d), as amended by 1987 PA 200.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 7d.  (1) Housing owned and operated by a nonprofit cor-

 2    poration or association or by  the  THIS state, a political sub-

 3    division of  the  THIS state, or an instrumentality of  the  THIS

 4    state, for occupancy or use solely by elderly or  handicapped 

 5    DISABLED families is exempt from  all general property taxation

 6     by the state, city, village, or county, or by a public body or

 7     agency  THE COLLECTION OF TAXES UNDER THIS ACT.  For purposes of

 8    this section, housing  shall be  IS considered occupied solely by

 9    elderly or  handicapped  DISABLED families even if 1 or more of

10    the units is occupied by service personnel, such as a custodian

11    or nurse.


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 1          (2) As used in this section, "elderly or handicapped

 2     families" means families consisting of 2 or more persons if the

 3     head of the household, or his or her spouse, is 62 years of age

 4     or over or is handicapped, and includes a single person who is 62

 5     years of age or over or is handicapped.

 6          (3) As used in this section, "handicapped person" means that

 7     term as defined in section 202 of the national housing act of

 8     1959, as amended, 12 U.S.C. 1701q.

 9          (4) "Housing" means new or rehabilitated structures with 8

10     or more residential units in 1 or more of the structures for

11     occupancy and use by elderly persons, including essential conti-

12     guous land and related facilities as well as all personal prop-

13     erty of the corporation or association used in connection with

14     the facilities.  As used in this subsection, "residential units"

15     include individual self-contained dwellings, or 1-bedroom units

16     in a facility for persons with a mental illness, a developmental

17     disability, or a physical handicap as those terms are defined in

18     the adult foster care facility licensing act, Act No. 218 of the

19     Public Acts of 1979, being sections 400.701 to 400.737 of the

20     Michigan Compiled Laws, that share dining, living, or bathroom

21     facilities, that is financed at the time of construction or reha-

22     bilitation under section 202 of title II of the housing act of

23     1959, 12 U.S.C. 1701q, and that is licensed as an adult foster

24     care facility under the adult foster care facility licensing act,

25     Act No. 218 of the Public Acts of 1979.

26          (5) "Nonprofit corporation or association" means a nonprofit

27     corporation or association incorporated under the laws of this



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 1    state not otherwise exempt from general ad valorem real and

 2     personal property taxes operating a housing facility or project

 3     qualified, built, or financed under section 202 of the national

 4     housing act of 1959, as amended, 12 U.S.C. 1701q or section 236

 5     of the national housing act as added by Public Law 90-448, 12

 6     U.S.C. 1715z-1. 

 7         (2)  (6) When  IF a  tax roll is placed in the hands of a

 8     city, county, village, or township treasurer  LOCAL TAX COLLECT-

 9    ING UNIT HAS A TAX ROLL for collection, and  there are  THE TAX

10    ROLL CONTAINS taxes assessed  on that roll  against property

11     concerning  FOR which AN exemption is claimed under this sec-

12    tion, the  treasurer  APPROPRIATE COLLECTING OFFICER shall pre-

13    pare a statement on a form prescribed by the department of man-

14    agement and budget  showing all descriptions  DESCRIBING THE

15    PROPERTY for which  exemptions have been  AN EXEMPTION IS claimed

16    under this section, the names and addresses of the  corporations

17     or associations  CORPORATION OR ASSOCIATION entitled to the

18     exemptions  EXEMPTION, the total amount of taxes  so  exempted,

19    and the amount of taxes assessed against the  descriptions 

20    PROPERTY.  The  city, county, village, or township treasurer 

21    LOCAL TAX COLLECTING UNIT shall forward the statement to the

22    department of management and budget.  , upon  UPON verification

23    of  which  THE STATEMENT, the state treasurer shall draw his or

24    her warrant upon the state treasury for the total amount of tax

25    revenues lost by  a  THE local  taxing  TAX COLLECTING unit as a

26    result of the  nonprofit housing  exemption  allowed by this act 

27    UNDER THIS SECTION as shown by the statement.  The  AFTER



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 1    EXAMINING THE STATEMENT, THE state treasurer  after examination

 2     of the statement  shall forward the warrants to the  city,

 3     county, village, or township  treasurer OF THE LOCAL TAX COLLECT-

 4    ING UNIT.

 5         (3)  (8)  The  budget  director OF THE DEPARTMENT OF MANAGE-

 6    MENT AND BUDGET shall estimate  , as near as may be,  the amount

 7     of money  necessary to meet the expense of administering the

 8    provisions of this section  under this act during  IN each year,

 9    and the  expense shall be met by a specific appropriation

10     included in the budget  LEGISLATURE SHALL APPROPRIATE AN AMOUNT

11    SUFFICIENT TO MEET THAT EXPENSE IN EACH YEAR.

12         (4) AS USED IN THIS SECTION:

13         (A) "DISABLED PERSON" MEANS A PERSON WITH DISABILITIES.

14         (B) "ELDERLY OR DISABLED FAMILIES" MEANS FAMILIES CONSISTING

15    OF 2 OR MORE PERSONS IF THE HEAD OF THE HOUSEHOLD, OR HIS OR HER

16    SPOUSE, IS 62 YEARS OF AGE OR OVER OR IS A DISABLED PERSON, AND

17    INCLUDES A SINGLE PERSON WHO IS 62 YEARS OF AGE OR OVER OR IS A

18    DISABLED PERSON.

19         (C) "ELDERLY PERSON" MEANS THAT TERM AS DEFINED IN SECTION

20    202 OF TITLE II OF THE HOUSING ACT OF 1959, PUBLIC LAW 86-372, 12

21    U.S.C. 1701q.

22         (D) "HOUSING" MEANS NEW OR REHABILITATED STRUCTURES WITH 8

23    OR MORE RESIDENTIAL UNITS IN 1 OR MORE OF THE STRUCTURES FOR

24    OCCUPANCY AND USE BY ELDERLY OR DISABLED PERSONS, INCLUDING

25    ESSENTIAL CONTIGUOUS LAND AND RELATED FACILITIES AS WELL AS ALL

26    PERSONAL PROPERTY OF THE CORPORATION OR ASSOCIATION USED IN

27    CONNECTION WITH THE FACILITIES.



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 1         (E) "NONPROFIT CORPORATION OR ASSOCIATION" MEANS A NONPROFIT

 2    CORPORATION OR ASSOCIATION INCORPORATED UNDER THE LAWS OF THIS

 3    STATE NOT OTHERWISE EXEMPT FROM THE COLLECTION OF TAXES UNDER

 4    THIS ACT, OPERATING A HOUSING FACILITY OR PROJECT QUALIFIED,

 5    BUILT, OR FINANCED UNDER SECTION 202 OF TITLE II OF THE HOUSING

 6    ACT OF 1959, PUBLIC LAW 86-372, 12 U.S.C. 1701q, SECTION 236 OF

 7    TITLE II OF THE NATIONAL HOUSING ACT, CHAPTER 847, 82 STAT. 498,

 8    12 U.S.C. 1715z-1, OR SECTION 811 OF SUBTITLE B OF TITLE VIII OF

 9    THE CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT, PUBLIC LAW

10    101-625, 42 U.S.C. 8013.

11         (F) "PERSON WITH DISABILITIES" MEANS THAT TERM AS DEFINED IN

12    SECTION 811 OF SUBTITLE B OF TITLE VIII OF THE CRANSTON-GONZALEZ

13    NATIONAL AFFORDABLE HOUSING ACT, PUBLIC LAW 101-625, 42

14    U.S.C. 8013.

15         (G) "RESIDENTIAL UNITS" INCLUDES 1-BEDROOM UNITS LICENSED

16    UNDER THE ADULT FOSTER CARE FACILITY LICENSING ACT, 1979 PA 218,

17    MCL 400.701 TO 400.737, FOR PERSONS WHO SHARE DINING, LIVING, AND

18    BATHROOM FACILITIES AND WHO HAVE A MENTAL ILLNESS, DEVELOPMENTAL

19    DISABILITY, OR A PHYSICAL HANDICAP, AS THOSE TERMS ARE DEFINED IN

20    THE ADULT FOSTER CARE FACILITY LICENSING ACT, 1979 PA 218, MCL

21    400.701 TO 400.737, OR INDIVIDUAL SELF-CONTAINED DWELLINGS IN AN

22    UNLICENSED FACILITY.  AT THE TIME OF CONSTRUCTION OR REHABILITA-

23    TION, BOTH SELF-CONTAINED DWELLINGS AND 1-BEDROOM UNITS MUST BE

24    FINANCED UNDER EITHER SECTION 202 OF TITLE II OF THE HOUSING ACT

25    OF 1959, PUBLIC LAW 86-372, 12 U.S.C. 1701q, OR UNDER SECTION 811

26    OF SUBTITLE B OF TITLE VIII OF THE CRANSTON-GONZALEZ NATIONAL

27    AFFORDABLE HOUSING ACT, PUBLIC LAW 101-625, 42 U.S.C. 8013.



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