HOUSE BILL No. 5779


     May 11, 2000, Introduced by Reps. Green, Julian, Sheltrown, Mans, Geiger, Howell, Jelinek, Ehardt, Pappageorge, Rick
Johnson, DeWeese, Gilbert, Koetje, Vear, Bradstreet, Mortimer, Brewer, DeVuyst and Birkholz and referred to the Committee on
Agriculture and Resource Management.


        A bill to amend 1893 PA 206, entitled

   "The general property tax act,"

   by amending sections 7dd, 7ee, 10, 24, 24c, 27a, 27b, 27c, 31,

   34, 34c, 34d, and 44 (MCL 211.7dd, 211.7ee, 211.10, 211.24,

   211.24c, 211.27a, 211.27b, 211.27c, 211.31, 211.34, 211.34c,

   211.34d, and 211.44), sections 7dd, 7ee, 24c, 27a, 27b, 34c, and

   34d as amended and section 27c as added by 1996 PA 476, sections

   10 and 24 as amended by 1994 PA 415, section 34 as amended by

   1986 PA 105, and section 44 as amended by 1996 PA 57, and by

   adding sections 7gg, 7hh, and 27e; and to repeal acts and parts

   of acts.










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               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 7dd.  As used in sections 7cc and 7ee:

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           (a) "Homestead" means that portion of a dwelling or unit in

 3
      a multiple-unit dwelling that is subject to ad valorem taxes and

 4
      is owned and occupied as a principal residence by an owner of the

 5
      dwelling or unit.  Homestead also includes all of an owner's

 6
      unoccupied property classified as residential that is adjoining

 7
      or contiguous to the dwelling subject to ad valorem taxes and

 8
      that is owned and occupied as a principal residence by the

 9
      owner.  Contiguity is not broken by a road, a right-of-way, or

10
      property purchased or taken under condemnation proceedings by a

11
      public utility for power transmission lines if the 2 parcels sep-

12
      arated by the purchased or condemned property were a single

13
      parcel prior to the sale or condemnation.  Homestead also

14
      includes any portion of a principal residence of an owner that is

15
      rented or leased to another person as a residence as long as that

16
      portion of the principal residence that is rented or leased is

17
      less than 50% of the total square footage of living space in that

18
      principal residence.  Homestead also includes a life care facil-

19
      ity registered under the living care disclosure act,  Act No. 440

20
      of the Public Acts of 1976, being sections 554.801 to 554.844 of

21
      the Michigan Compiled Laws  1976 PA 440, MCL 554.801 TO 554.844.

22
      Homestead also includes property owned by a cooperative housing

23
      corporation and occupied as a principal residence by tenant

24
      stockholders.

25
           (b) "Owner" means any of the following:





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           (i) A person who owns property or who is purchasing property

 2
      under a land contract.

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           (ii) A person who is a partial owner of property.

 4
           (iii) A person who owns property as a result of being a ben-

 5
      eficiary of a will or trust or as a result of intestate

 6
      succession.

 7
           (iv) A person who owns or is purchasing a dwelling on leased

 8
      land.

 9
           (v) A person holding a life lease in property previously

10
      sold or transferred to another.

11
           (vi) A grantor who has placed the property in a revocable

12
      trust or a qualified personal residence trust.

13
           (vii) A cooperative housing corporation.

14
           (viii) A facility registered under  Act No. 440 of the

15
      Public Acts of 1976  THE LIVING CARE DISCLOSURE ACT, 1976 PA 440,

16
      MCL 554.801 TO 554.844.

17
           (c) "Person", for purposes of defining owner as used in

18
      section 7cc, means an individual and for purposes of defining

19
      owner as used in section 7ee means an individual, partnership,

20
      corporation, limited liability company, association, or other

21
      legal entity.

22
           (d) "Principal residence" means the 1 place where a person

23
      has his or her true, fixed, and permanent home to which, whenever

24
      absent, he or she intends to return and that shall continue as a

25
      principal residence until another principal residence is

26
      established.





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           (e) "Qualified agricultural property" means unoccupied

 2
      property and related buildings classified as agricultural REAL

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      PROPERTY, or other unoccupied property and related buildings

 4
      located on that property devoted primarily to agricultural use as

 5
      defined in section  36101 of part 361 (farmland and open space

 6
      preservation) of the natural resources and environmental protec-

 7
      tion act, Act No. 451 of the Public Acts of 1994, being section

 8
      324.36101 of the Michigan Compiled Laws  34C.  Related buildings

 9
      include a residence occupied by a person employed in or actively

10
      involved in the agricultural use and who has not claimed a home-

11
      stead exemption on other property.  Property used for commercial

12
      storage, commercial processing, commercial distribution, commer-

13
      cial marketing, or commercial shipping operations or other com-

14
      mercial or industrial purposes is not qualified agricultural

15
      property.  A parcel of property is devoted primarily to agricul-

16
      tural use only if more than 50% of the parcel's acreage is

17
      devoted to agricultural use.  An owner shall not receive an

18
      exemption for that portion of the total state equalized valuation

19
      of the property that is used for a commercial or industrial pur-

20
      pose or that is a residence that is not a related building.

21
           Sec. 7ee.  (1) Qualified agricultural property is exempt

22
      from the tax levied by a local school district for school operat-

23
      ing purposes to the extent provided under section 1211 of the

24
      revised school code,  Act No. 451 of the Public Acts of 1976,

25
      being section 380.1211 of the Michigan Compiled Laws  1976 PA

26
      451, MCL 380.1211, according to the provisions of this section.





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 1
           (2) Qualified agricultural property that is classified as

 2
      agricultural REAL PROPERTY under section 34c is exempt under

 3
      subsection (1) and the owner is not required to file an affidavit

 4
      claiming an exemption with the local tax collecting unit unless

 5
      requested by the assessor to determine whether the property

 6
      includes structures that are not exempt under this section.  To

 7
      claim an exemption under subsection (1) for qualified agricul-

 8
      tural property that is not classified as agricultural REAL

 9
      PROPERTY under section 34c, the owner shall file an affidavit

10
      claiming the exemption with the local tax collecting unit by

11
      May 1 FOR TAXES LEVIED BEFORE JANUARY 1, 2001 AND BY TAX DAY AS

12
      PROVIDED IN SECTION 2 FOR TAXES LEVIED AFTER DECEMBER 31, 2000.

13
      However, if an affidavit claiming a homestead exemption on quali-

14
      fied agricultural property not classified as agricultural REAL

15
      PROPERTY was not filed by May 1 in 1994, the owner shall file an

16
      affidavit under this section by June 1, 1994.

17
           (3) The affidavit shall be on a form prescribed by the

18
      department of treasury.

19
           (4) For property classified as agricultural REAL PROPERTY,

20
      and upon receipt of an affidavit filed under subsection (2) for

21
      property not classified as agricultural REAL PROPERTY, the asses-

22
      sor shall determine if the property is qualified agricultural

23
      property and if so shall exempt the property from the collection

24
      of the tax as provided in subsection (1) until December 31 of the

25
      year in which the property is no longer qualified agricultural

26
      property as defined in section 7dd.  An owner is required to file





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      a new claim for exemption on the same property as requested by

 2
      the assessor under subsection (2).

 3
           (5) Not more than 90 days after all or a portion of the

 4
      exempted property is no longer qualified agricultural property,

 5
      the owner shall rescind the exemption for the applicable portion

 6
      of the property by filing with the local tax collecting unit a

 7
      rescission form prescribed by the department of treasury.

 8
      Beginning October 1, 1994, an owner who fails to file a rescis-

 9
      sion as required by this subsection is subject to a penalty of

10
      $5.00 per day for each separate failure beginning after the 90

11
      days have elapsed, up to a maximum of $200.00.  This penalty

12
      shall be collected under  Act No. 122 of the Public Acts of 1941,

13
      being sections 205.1 to 205.31 of the Michigan Compiled Laws 

14
      1941 PA 122, MCL 205.1 TO 205.31, and shall be deposited in the

15
      state school aid fund established in section 11 of article IX of

16
      the state constitution of 1963.  This penalty may be waived by

17
      the department of treasury.

18
           (6) An owner of property that is qualified agricultural

19
      property on May 1 for which an exemption was not on the tax roll

20
      may file an appeal with the July or December board of review in

21
      the year the exemption was claimed or the immediately succeeding

22
      year.  An owner of property that is qualified agricultural prop-

23
      erty  on May 1  for which an exemption was denied by the assessor

24
      in the year the affidavit was filed, may file an appeal with the

25
      July board of review for summer taxes or, if there is not a

26
      summer levy of school operating taxes, with the December COUNTY

27
      QUALIFIED AGRICULTURAL PROPERTY board of review.



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           (7) If the assessor of the local tax collecting unit

 2
      believes that the property for which an exemption has been

 3
      granted is not qualified agricultural property, effective for

 4
      taxes levied after 1994, the assessor may deny or modify an

 5
      existing exemption by notifying the owner in writing at the time

 6
      required for providing a notice under section 24c.  A taxpayer

 7
      may appeal the assessor's determination to the board of review

 8
      meeting under section 30.  A decision of the board of review may

 9
      be appealed to the residential and small claims division of the

10
      Michigan tax tribunal.

11
           (8) If an exemption under this section is erroneously grant-

12
      ed, an owner may request in writing that the local tax collecting

13
      unit withdraw the exemption.  If an owner requests that an exemp-

14
      tion be withdrawn, the local assessor shall notify the owner that

15
      the exemption issued under this section has been denied based on

16
      that owner's request.  If an exemption is withdrawn, the property

17
      that had been subject to that exemption shall be immediately

18
      placed on the tax roll by the local tax collecting unit if the

19
      local tax collecting unit has possession of the tax roll or by

20
      the county treasurer if the county has possession of the tax roll

21
      as though the exemption had not been granted.  A corrected tax

22
      bill shall be issued for the tax year being adjusted by the local

23
      tax collecting unit if the local tax collecting unit has posses-

24
      sion of the tax roll or by the county treasurer if the county has

25
      possession of the tax roll.  If an owner requests that an exemp-

26
      tion under this section be withdrawn before that owner is

27
      contacted in writing by the local assessor regarding that owner's



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 1
      eligibility for the exemption and that owner pays the corrected

 2
      tax bill issued under this subsection within 30 days after the

 3
      corrected tax bill is issued, that owner is not liable for any

 4
      penalty or interest on the additional tax.  An owner who pays a

 5
      corrected tax bill issued under this subsection more than 30 days

 6
      after the corrected tax bill is issued is liable for the penal-

 7
      ties and interest that would have accrued if the exemption had

 8
      not been granted from the date the taxes were originally levied.

 9
           (9) An owner of qualified agricultural property for which an

10
      exemption was on the tax roll in 1995 and each year after 1995

11
      and for which an exemption was not on the tax roll in 1994 may

12
      appeal to the July or December board of review in 1997 to have an

13
      exemption placed on the 1994 tax roll if all of the following

14
      conditions are satisfied:

15
           (a) The qualified agricultural property was qualified agri-

16
      cultural property in 1994 and has been qualified agricultural

17
      property since 1994.

18
           (b) The owner owned that qualified agricultural property on

19
      May 1, 1994.

20
           (c) If a claim of exemption was denied in 1994, the owner

21
      did not timely appeal that denial as provided in this section.

22
           (d) The owner has owned that qualified agricultural property

23
      since 1994.

24
           (10) If the July or December board of review in 1997 grants

25
      a claim of exemption for 1994 under subsection (9), the county

26
      treasurer with possession of the tax roll being adjusted shall

27
      amend the 1994 tax roll to reflect the exemption and shall issue



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 1
      a corrected tax bill exempting that qualified agricultural

 2
      property from the tax levied in 1994 for school operating pur-

 3
      poses to the extent provided under section 1211 of  Act No. 451

 4
      of the Public Acts of 1976  THE REVISED SCHOOL CODE, 1976 PA 451,

 5
      MCL 380.1211, pursuant to subsection (1).

 6
           (11) If the July or December board of review in 1997 denies

 7
      a claim of exemption for 1994 under subsection (9), an owner may

 8
      appeal that denial to the residential and small claims division

 9
      of the Michigan tax tribunal within 35 days of that denial.

10
           (12) AN OWNER OF QUALIFIED AGRICULTURAL PROPERTY SHALL

11
      INFORM A PROSPECTIVE BUYER OF THAT QUALIFIED AGRICULTURAL PROP-

12
      ERTY THAT IF THE QUALIFIED AGRICULTURAL PROPERTY IS CONVERTED BY

13
      A CHANGE IN USE THE QUALIFIED AGRICULTURAL PROPERTY IS SUBJECT TO

14
      THE RECAPTURE TAX PROVIDED IN THE AGRICULTURAL PROPERTY RECAPTURE

15
      ACT.  AS USED IN THIS SUBSECTION, "CONVERTED BY A CHANGE IN USE"

16
      MEANS THAT TERM AS DEFINED IN THE AGRICULTURAL PROPERTY RECAPTURE

17
      ACT.

18
           SEC. 7GG.  (1) A GREENHOUSE, BUT NOT THE LAND ON WHICH IT IS

19
      LOCATED, AND ALL FLOWERING, NURSERY, OR VEGETABLE PLANTS LOCATED

20
      WITHIN THE GREENHOUSE ARE EXEMPT FROM THE COLLECTION OF TAXES

21
      UNDER THIS ACT.

22
           (2) AS USED IN THIS SECTION, "GREENHOUSE" MEANS A STRUCTURE

23
      OR ENCLOSURE CONSISTING OF A WOOD, FIBERGLASS, OR METAL FRAME

24
      WITH A GLASS, PLASTIC, ACRYLIC, POLYCARBONATE, POLYETHYLENE, OR

25
      SIMILAR COVERING, THAT IS DESIGNED TO REGULATE CLIMATIC CONDI-

26
      TIONS IN ORDER TO GERMINATE, GROW, OR STORE FLOWERING, NURSERY,

27
      OR VEGETABLE PLANTS.



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 1
           SEC. 7HH.  (1) FOR TAXES LEVIED AFTER DECEMBER 31, 2000,

 2
      RESIDENTIAL DEVELOPMENT PROPERTY IS EXEMPT FROM THE COLLECTION OF

 3
      TAXES LEVIED BY A LOCAL SCHOOL DISTRICT FOR SCHOOL OPERATING PUR-

 4
      POSES UNDER SECTION 1211 OF THE REVISED SCHOOL CODE, 1976 PA 451,

 5
      MCL 380.1211, TO THE SAME EXTENT THAT A HOMESTEAD IS EXEMPT UNDER

 6
      SECTION 7CC FROM TAXES LEVIED BY A LOCAL SCHOOL DISTRICT FOR

 7
      SCHOOL OPERATING PURPOSES UNDER SECTION 1211 OF THE REVISED

 8
      SCHOOL CODE, 1976 PA 451, MCL 380.1211.

 9
           (2) AS USED IN THIS SECTION:

10
           (A) "HOMESTEAD" MEANS THAT TERM AS DEFINED IN SECTION 7DD.

11
           (B) "RESIDENTIAL DEVELOPMENT PROPERTY" MEANS REAL PROPERTY

12
      THAT MEETS ALL OF THE FOLLOWING CRITERIA:

13
           (i) IS CLASSIFIED AS RESIDENTIAL REAL PROPERTY UNDER SECTION

14
      34C.

15
           (ii) IS SUBJECT TO 1 OF THE FOLLOWING CONDITIONS:

16
           (A) A FINAL PLAT FOR THE REAL PROPERTY IS RECORDED PURSUANT

17
      TO THE LAND DIVISION ACT, 1967 PA 288, MCL 560.101 TO 560.293,

18
      AFTER THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS

19
      SECTION.

20
           (B) A CONDOMINIUM SUBDIVISION PLAN IS COMPLETED AND A MASTER

21
      DEED FOR ALL OR A PORTION OF THE REAL PROPERTY IS RECORDED PURSU-

22
      ANT TO THE CONDOMINIUM ACT, 1978 PA 59, MCL 559.101 TO 559.275,

23
      AFTER THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS

24
      SECTION.

25
           (iii) A RESIDENTIAL DWELLING OR CONDOMINIUM UNIT THAT IS

26
      OCCUPIED OR THAT HAS EVER BEEN OCCUPIED IS NOT LOCATED ON THE

27
      REAL PROPERTY.  RESIDENTIAL DEVELOPMENT PROPERTY MAY INCLUDE



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      PROPERTY ON WHICH IS LOCATED A PARTIALLY COMPLETED RESIDENTIAL

 2
      DWELLING OR A PARTIALLY COMPLETED CONDOMINIUM UNIT, OR A FULLY

 3
      COMPLETED RESIDENTIAL DWELLING THAT IS NOT OCCUPIED AND HAS NEVER

 4
      BEEN OCCUPIED OR A FULLY COMPLETED CONDOMINIUM UNIT THAT IS NOT

 5
      OCCUPIED AND HAS NEVER BEEN OCCUPIED.  RESIDENTIAL DEVELOPMENT

 6
      PROPERTY DOES NOT INCLUDE PROPERTY ON WHICH IS LOCATED A RESIDEN-

 7
      TIAL DWELLING OR CONDOMINIUM UNIT USED FOR COMMERCIAL PURPOSES OR

 8
      AS AN OFFICE, SHOWROOM, OR MODEL.

 9
           Sec. 10.  (1) An assessment of all the property in the state

10
      liable to taxation shall be made annually in all townships, vil-

11
      lages, and cities by the  applicable  APPROPRIATE assessing offi-

12
      cer as provided in section 3 of article IX of the state constitu-

13
      tion of 1963 and section 27a.

14
           (2) Notwithstanding any provision to the contrary in the act

15
      of incorporation or charter of a village, an assessment for vil-

16
      lage taxes shall be identical to the assessment made by the

   17  applicable  APPROPRIATE assessing officer of the township in

18
      which the village is located, and tax statements shall set forth

19
      clearly the state equalized  value  VALUATION OR AGRICULTURAL USE

20
      VALUE FOR QUALIFIED AGRICULTURAL PROPERTY and the taxable value

21
      of the individual properties in the village upon which authorized

22
      millages are levied.

23
           (3) If a nonresident of the taxing unit requests in writing

24
      information regarding the assessment of his or her property, the

25
       supervisor or  APPROPRIATE assessing officer shall reply to the

26
      request within a reasonable length of time.





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           Sec. 24.  (1) On or before the first Monday in March in each

 2
      year, the  supervisor or  assessor shall make and complete an

 3
      assessment roll, upon which he or she shall set down the name and

 4
      address of every person liable to be taxed in the  township or

 5
      assessment district  LOCAL TAX COLLECTING UNIT with a full

 6
      description of all the real property liable to be taxed.  If the

 7
      name of the owner or occupant of any tract or parcel of real

 8
      property is known, the assessor shall enter the name and address

 9
      of the owner or occupant opposite to the description of the

10
      property.  If unknown, the real property described upon the roll

11
      shall be assessed as "owner unknown".  All contiguous subdivi-

12
      sions of any section that are owned by 1 person, firm, corpora-

13
      tion, or other legal entity and all unimproved lots in any block

14
      that are contiguous and owned by 1 person, firm, corporation, or

15
      other legal entity shall be assessed as 1 parcel, unless demand

16
      in writing is made by the owner or occupant to have each subdivi-

17
      sion of the section or each lot assessed separately.  However,

18
      failure to assess contiguous parcels as entireties does not

19
      invalidate the assessment as made.  Each description shall show

20
      as near as possible the number of acres contained in it, as

21
      determined by the assessor.  It is not necessary for the assess-

22
      ment roll to specify the quantity of land comprised in any town,

23
      city, or village lot.  The assessor shall estimate, according to

24
      his or her best information and judgment, the TRUE CASH VALUE AND

25
      AGRICULTURAL USE VALUE FOR QUALIFIED AGRICULTURAL PROPERTY AND

26
      THE true cash value and assessed value of every parcel of real

27
      property THAT IS NOT QUALIFIED AGRICULTURAL PROPERTY and set the



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 1
      AGRICULTURAL USE VALUE OR assessed value down opposite the

 2
      parcel.  The assessor shall calculate the tentative taxable value

 3
      of every parcel of real property and set that value down opposite

 4
      the parcel.  The assessor shall determine the percentage of value

 5
      of every parcel of real property that is exempt from the tax

 6
      levied by a local school district for school operating purposes

 7
      to the extent provided under section 1211 of the school code of

 8
      1976,  Act No. 451 of the Public Acts of 1976, being section

 9
      380.1211 of the Michigan Compiled laws  1976 PA 451, MCL

10
      380.1211, and set that percentage of value down opposite the

11
      parcel.  The assessor shall determine the date of the last trans-

12
      fer of ownership of every parcel of real property occurring after

13
      December 31, 1994 and set that date down opposite the parcel.

14
      The assessor shall also estimate the true cash value of all the

15
      personal property of each person, and set the assessed value and

16
      tentative taxable value down opposite the name of the person.  In

17
      determining the property to be assessed and in estimating the

18
      value of that property, the assessor is not bound to follow the

19
      statements of any person, but shall exercise his or her best

20
      judgment.  Property assessed to a person other than the owner

21
      shall be assessed separately from the owner's property and shall

22
      show in what capacity it is assessed to that person, whether as

23
      agent, guardian, or otherwise.  Two or more persons not being

24
      copartners, owning personal property in common, may each be

25
      assessed severally for each person's portion.  Undivided inter-

26
      ests in lands owned by tenants in common, or joint tenants not

27
      being copartners, may be assessed to the owners.



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 1
           (2) The state geologist, or his or her duly authorized

 2
      deputy, shall determine, according to his or her best information

 3
      and judgment, the true cash value of the metallic mining proper-

 4
      ties and mineral rights consisting of metallic resources that are

 5
      either producing, developed, or have a known commercial mineral

 6
      value, including surface rights and personal property that may be

 7
      used in the operation or development of the property assessed, or

 8
      any stockpile of ore or mineral stored on the surface.  For the

 9
      purpose of encouraging the exploration and development of metal-

10
      lic mineral resources, metallic mineral ore newly discovered or

11
      proven in the ground and not part of the property of an operating

12
      mine shall be exempt from the taxes collected under this act for

13
      a maximum period of 10 years or until the time it becomes part of

14
      the property of an operating mine or it in itself becomes an

15
      operating mine.  Metallic mineral ore newly discovered or proven

16
      in the ground and part of the property of an operating mine shall

17
      be exempt from taxes collected under this act until it, in combi-

18
      nation with previously discovered metallic mineral ore of the

19
      operating mine, comes into a 10-year recovery period of the mine

20
      as determined by the average normal annual rate of extraction of

21
      the mine.

22
           (3) An operating mine shall be defined to be an operating

23
      mine as of the date of starting of a shaft, stripping of overbur-

24
      den, or rehabilitation, or an abandoned or idle mine closed for

25
      not less than 2 years.  Ore shall not enjoy more than 10 years'

26
      exemption from taxation.  This section does not exempt from the

27
      taxes collected under this act ore reserves proven as of April 1,



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 1
      1947.  It is the intent of this act that mineral properties shall

 2
      be valued and assessed in the future for ad valorem taxes accord-

 3
      ing to the formula used in the valuation of mineral properties

 4
      before the effective date of this act.  It is the intent of this

 5
      act that no metallic mineral ore shall be exempt more than 10

 6
      years because of the application of this act and if at any time

 7
      it becomes evident that such is the case, the state tax commis-

 8
      sion shall determine the value of this untaxed ore and place this

 9
      valuation on the proper tax roll.  The state geologist shall

10
      report his or her determination of the true cash value of the

11
      mineral properties to the state tax commission on or before

12
      February 10 of each year.  The state tax commission shall assess

13
      the mineral properties containing 20% or more of natural iron per

14
      ton of ore in conformity and uniformity with all other property

15
      within the assessing district.  The state tax commission shall

16
      assess all other metallic mineral properties at the value certi-

17
      fied by the state geologist.  The state tax commission, as early

18
      as is practicable before February 20, shall certify the assess-

19
      ment of the property to the  supervisor or assessing officer 

20
      ASSESSOR of the township or city in which the property is situat-

21
      ed, who shall for the mineral properties and mineral rights that

22
      are owned separate from the surface rights on the property assess

23
      each to the owner at the valuation certified to him or her.

24
      However, an adjustment to the value certified by the state tax

25
      commission may be made by the  supervisor or assessing officer 

26
      ASSESSOR of the township or city to reflect any general

27
      adjustment of assessed valuation from the immediately preceding



   H05309'99 **
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 1
      year not included in the state tax commission computation.  The

 2
       supervisor or assessing officer  ASSESSOR shall determine the

 3
      true cash value of the surface rights and assess the value of the

 4
      surface rights to the owner.  The assessment upon the metallic

 5
      mining properties and mineral rights may be altered from year to

 6
      year regardless of whether any previous assessment has been

 7
      reviewed by the state tax commission.  The  supervisor or other

 8
      local assessing officer  ASSESSOR or the owner of any interest in

 9
      the property assessed may appeal the assessment and valuation of

10
      the property as determined by the board of review to the state

11
      tax commission which shall review the assessment and valuation as

12
      provided in section 152.

13
           Sec. 24c.  (1) The assessor shall give to each owner or

14
      person or persons listed on the assessment roll of the property a

15
      notice by first-class mail of an increase in the tentative state

16
      equalized valuation, THE TENTATIVE AGRICULTURAL USE VALUE, or the

17
      tentative taxable value for the year.  The notice shall specify

18
      each parcel of property, the tentative taxable value for the cur-

19
      rent year and, beginning in 1996, the taxable value for the imme-

20
      diately preceding year.  The notice shall also specify the time

21
      and place of the meeting of the board of review.  Beginning in

22
      1996, the notice shall also specify the difference between the

23
      property's tentative taxable value in the current year and the

24
      property's taxable value in the immediately preceding year.

25
           (2) The notice shall include, in addition to the information

26
      required by subsection (1), all of the following:





   H05309'99 **
                                  17

 1
           (a) The state equalized valuation for the immediately

 2
      preceding year.

 3
           (b) The tentative state equalized valuation for the current

 4
      year.

 5
           (c) The net change between the tentative state equalized

 6
      valuation for the current year and the state equalized valuation

 7
      for the immediately preceding year.

 8
           (D) FOR QUALIFIED AGRICULTURAL PROPERTY, ALL OF THE

 9
      FOLLOWING:

10
           (i) BEGINNING IN 2002, THE AGRICULTURAL USE VALUE FOR THE

11
      IMMEDIATELY PRECEDING YEAR.

12
           (ii) THE TENTATIVE AGRICULTURAL USE VALUE FOR THE CURRENT

13
      YEAR.

14
           (iii) BEGINNING IN 2002, THE NET CHANGE BETWEEN THE TENTA-

15
      TIVE AGRICULTURAL USE VALUE FOR THE CURRENT YEAR AND THE AGRICUL-

16
      TURAL USE VALUE FOR THE IMMEDIATELY PRECEDING YEAR.

17
           (iv) THE RECAPTURE TAX THAT WOULD BE IMPOSED UNDER THE AGRI-

18
      CULTURAL PROPERTY RECAPTURE ACT IF THE QUALIFIED AGRICULTURAL

19
      PROPERTY WERE CONVERTED BY A CHANGE IN USE.  AS USED IN THIS SUB-

20
      PARAGRAPH, "CONVERTED BY A CHANGE IN USE" MEANS THAT TERM AS

21
      DEFINED IN THE AGRICULTURAL PROPERTY RECAPTURE ACT.

22
           (E)  (d)  The classification of the property as defined by

23
      section 34c AND WHETHER THAT PROPERTY IS QUALIFIED AGRICULTURAL

24
      PROPERTY EXEMPT FROM THE TAX LEVIED BY A LOCAL SCHOOL DISTRICT

25
      FOR SCHOOL OPERATING PURPOSES UNDER SECTION 7EE.

26
           (F)  (e)  The inflation rate for the immediately preceding

27
      year as defined in section 34d.



   H05309'99 **
                                  18

 1
           (G)  (f)  A statement provided by the state tax commission

 2
      explaining the relationship between state equalized valuation and

 3
      taxable value OR, FOR QUALIFIED AGRICULTURAL PROPERTY, THE RELA-

 4
      TIONSHIP BETWEEN THE AGRICULTURAL USE VALUE AND TAXABLE VALUE.

 5
      Beginning in 1996, if the assessor believes that a transfer of

 6
      ownership has occurred in the immediately preceding year, the

 7
      statement shall state that the ownership was transferred and that

 8
      the taxable value of that property is the same as the state

 9
      equalized valuation of that property OR, FOR QUALIFIED AGRICUL-

10
      TURAL PROPERTY, THE SAME AS THE AGRICULTURAL USE VALUE.

11
           (3) When required by the income tax act of 1967,  Act

12
      No. 281 of the Public Acts of 1967, being sections 206.1 to

13
      206.532 of the Michigan Compiled Laws  1967 PA 281, MCL 206.1 TO

14
      206.532, the assessment notice shall include or be accompanied by

15
      information or forms prescribed by  Act No. 281 of the Public

16
      Acts of 1967  THE INCOME TAX ACT OF 1967, 1967 PA 281, MCL 206.1

17
      TO 206.532.

18
           (4) The assessment notice shall be addressed to the owner

19
      according to the records of the assessor and mailed not less than

20
      10 days before the meeting of the board of review.  The failure

21
      to send or receive an assessment notice does not invalidate an

22
      assessment roll or an assessment on that property.

23
           (5) The tentative state equalized valuation shall be calcu-

24
      lated by multiplying the assessment by the tentative equalized

25
      valuation multiplier.  If the assessor has made assessment

26
      adjustments that would have changed the tentative multiplier, the

27
      assessor may recalculate the multiplier for use in the notice.



   H05309'99 **
                                  19

 1
           (6) The state tax commission shall prepare a model

 2
      assessment notice form that shall be made available to local

 3
      units of government.

 4
           (7) Beginning in 1995, the assessment notice under subsec-

 5
      tion (1) shall include the following statement:

 6
           "If you purchased your homestead after May 1 last

 7
           year, to claim the homestead exemption, if you have

 8
           not already done so, you are required to file an

 9
           affidavit before May 1.".

10
           Sec. 27a.  (1) Except as otherwise provided in this section

11
      AND SECTION 27E, property shall be assessed at 50% of its true

12
      cash value under section 3 of article IX of the state constitu-

13
      tion of 1963.

14
           (2) Except as otherwise provided in subsection (3), for

15
      taxes levied in 1995 and for each year after 1995, the taxable

16
      value of each parcel of property is the lesser of the following:

17
           (a) The property's taxable value in the immediately preced-

18
      ing year minus any losses, multiplied by the lesser of 1.05 or

19
      the inflation rate, plus all additions.  For taxes levied in

20
      1995, the property's taxable value in the immediately preceding

21
      year is the property's state equalized valuation in 1994.

22
           (b) The property's current state equalized valuation.

23
           (3) Upon a transfer of ownership of property after 1994, the

24
      property's taxable value for the calendar year following the year

25
      of the transfer is the property's state equalized valuation for

26
      the calendar year following the transfer.





   H05309'99 **
                                  20

 1
           (4) If the taxable value of property is adjusted under

 2
      subsection (3), a subsequent increase in the property's taxable

 3
      value is subject to the limitation set forth in subsection (2)

 4
      until a subsequent transfer of ownership occurs.

 5
           (5) Assessment of property, as required in this section and

 6
      section 27, is inapplicable to the assessment of property subject

 7
      to the levy of ad valorem taxes within voted tax limitation

 8
      increases to pay principal and interest on limited tax bonds

 9
      issued by any governmental unit, including a county, township,

10
      community college district, or school district, before January 1,

11
      1964, if the assessment required to be made under this act would

12
      be less than the assessment as state equalized prevailing on the

13
      property at the time of the issuance of the bonds.  This inappli-

14
      cability shall continue until levy of taxes to pay principal and

15
      interest on the bonds is no longer required.  The assessment of

16
      property required by this act shall be applicable for all other

17
      purposes.

18
           (6) As used in this act, "transfer of ownership" means the

19
      conveyance of title to or a present interest in property, includ-

20
      ing the beneficial use of the property, the value of which is

21
      substantially equal to the value of the fee interest.  Transfer

22
      of ownership of property includes, but is not limited to, the

23
      following:

24
           (a) A conveyance by deed.

25
           (b) A conveyance by land contract.  The taxable value of

26
      property conveyed by a land contract executed after December 31,

27
      1994 shall be adjusted under subsection (3) for the calendar year



   H05309'99 **
                                  21

 1
      following the year in which the contract is entered into and

 2
      shall not be subsequently adjusted under subsection (3) when the

 3
      deed conveying title to the property is recorded in the office of

 4
      the register of deeds in the county in which the property is

 5
      located.

    6      (c) A conveyance to a trust after December 31, 1994, except

 7
      if the settlor or the settlor's spouse, or both, conveys the

 8
      property to the trust and the sole present beneficiary or benefi-

 9
      ciaries are the settlor or the settlor's spouse, or both.

10
           (d) A conveyance by distribution from a trust, except if the

11
      distributee is the sole present beneficiary or the spouse of the

12
      sole present beneficiary, or both.

13
           (e) A change in the sole present beneficiary or beneficia-

14
      ries of a trust, except a change that adds or substitutes the

15
      spouse of the sole present beneficiary.

16
           (f) A conveyance by distribution under a will or by intes-

17
      tate succession, except if the distributee is the decedent's

18
      spouse.

19
           (g) A conveyance by lease if the total duration of the

20
      lease, including the initial term and all options for renewal, is

21
      more than 35 years or the lease grants the  leasee  LESSEE a bar-

22
      gain purchase option.  As used in this subdivision, "bargain pur-

23
      chase option" means the right to purchase the property at the

24
      termination of the lease for not more than 80% of the property's

25
      projected true cash value at the termination of the lease.  After

26
      December 31, 1994, the taxable value of property conveyed by a

27
      lease with a total duration of more than 35 years or with a



   H05309'99 **
                                  22

 1
      bargain purchase option shall be adjusted under subsection (3)

 2
      for the calendar year following the year in which the lease is

 3
      entered into.  This subdivision does not apply to personal prop-

 4
      erty except buildings described in section 14(6) and personal

 5
      property described in section 8(h), (i), and (j).  This subdivi-

 6
      sion does not apply to that portion of the property not subject

 7
      to the leasehold interest conveyed.

 8
           (h) A conveyance of an ownership interest in a corporation,

 9
      partnership, sole proprietorship, limited liability company,

10
      limited liability partnership, or other legal entity if the

11
      ownership interest conveyed is more than 50% of the corporation,

12
      partnership, sole proprietorship, limited liability company,

13
      limited liability partnership, or other legal entity.  Unless

14
      notification is provided under subsection (8), the corporation,

15
      partnership, sole proprietorship, limited liability company,

16
      limited liability partnership, or other legal entity shall notify

17
      the  assessing officer  ASSESSOR on a form provided by the state

18
      tax commission not more than 45 days after a conveyance of an

19
      ownership interest that constitutes a transfer of ownership under

20
      this subdivision.

21
           (i) A transfer of property held as a tenancy in common,

22
      except that portion of the property not subject to the ownership

23
      interest conveyed.

24
           (j) A conveyance of an ownership interest in a cooperative

25
      housing corporation, except that portion of the property not

26
      subject to the ownership interest conveyed.





   H05309'99 **
                                  23

 1
           (7) Transfer of ownership does not include the following:

 2
           (a) The transfer of property from 1 spouse to the other

 3
      spouse or from a decedent to a surviving spouse.

 4
           (b) A transfer from a husband, a wife, or a husband and wife

 5
      creating or disjoining a tenancy by the entireties in the grant-

 6
      ors or the grantor and his or her spouse.

 7
           (c) A transfer of that portion of property subject to a life

 8
      estate or life lease retained by the transferor, until expiration

 9
      or termination of the life estate or life lease.  That portion of

10
      property transferred that is not subject to a life lease shall be

11
      adjusted under subsection (3).

12
           (d) A transfer through foreclosure or forfeiture of a

13
      recorded instrument under chapter 31, 32, or 57 of the revised

14
      judicature act of 1961,  Act No. 236 of the Public Acts of 1961,

15
      being sections 600.3101 to 600.3280 and 600.5701 to 600.5785 of

16
      the Michigan Compiled Laws  1961 PA 236, MCL 600.3101 TO 600.3280

17
      AND 600.5701 TO 600.5785, or through deed or conveyance in lieu

18
      of a foreclosure or forfeiture, until the mortgagee or land con-

19
      tract vendor subsequently transfers the property.  If a mortgagee

20
      does not transfer the property within 1 year of the expiration of

21
      any applicable redemption period, the property shall be adjusted

22
      under subsection (3).

23
           (e) A transfer by redemption by the person to whom taxes are

24
      assessed of property previously sold for delinquent taxes.

25
           (f) A conveyance to a trust if the settlor or the settlor's

26
      spouse, or both, conveys the property to the trust and the sole





   H05309'99 **
                                  24

 1
      present beneficiary of the trust is the settlor or the settlor's

 2
      spouse, or both.

 3
           (g) A transfer pursuant to a judgment or order of a court of

 4
      record making or ordering a transfer, unless a specific monetary

 5
      consideration is specified or ordered by the court for the

 6
      transfer.

 7
           (h) A transfer creating or terminating a joint tenancy

 8
      between 2 or more persons if at least 1 of the persons was an

 9
      original owner of the property before the joint tenancy was ini-

10
      tially created and, if the property is held as a joint tenancy at

11
      the time of conveyance, at least 1 of the persons was a joint

12
      tenant when the joint tenancy was initially created and that

13
      person has remained a joint tenant since the joint tenancy was

14
      initially created.  A joint owner at the time of the last trans-

15
      fer of ownership of the property is an original owner of the

16
      property.  For purposes of this subdivision, a person is an orig-

17
      inal owner of property owned by that person's spouse.

18
           (i) A transfer for security or an assignment or discharge of

19
      a security interest.

20
           (j) A transfer of real property or other ownership interests

21
      among members of an affiliated group.  As used in this subsec-

22
      tion, "affiliated group" means 1 or more corporations connected

23
      by stock ownership to a common parent corporation.  Upon request

24
      by the state tax commission, a corporation shall furnish proof

25
      within 45 days that a transfer meets the requirements of this

26
      subdivision.  A corporation that fails to comply with a request





   H05309'99 **
                                  25

 1
      by the state tax commission under this subdivision is subject to

 2
      a fine of $200.00.

 3
           (k) Normal public trading of shares of stock or other owner-

 4
      ship interests that, over any period of time, cumulatively repre-

 5
      sent more than 50% of the total ownership interest in a corpora-

 6
      tion or other legal entity and are traded in multiple transac-

 7
      tions involving unrelated individuals, institutions, or other

 8
      legal entities.

 9
           (l) A transfer of real property or other ownership interests

10
      among corporations, partnerships, limited liability companies,

11
      limited liability partnerships, or other legal entities if the

12
      entities involved are commonly controlled.  Upon request by the

13
      state tax commission, a corporation, partnership, limited liabil-

14
      ity company, limited liability partnership, or other legal entity

15
      shall furnish proof within 45 days that a transfer meets the

16
      requirements of this subdivision.  A corporation, partnership,

17
      limited liability company, limited liability partnership, or

18
      other legal entity that fails to comply with a request by the

19
      state tax commission under this subdivision is subject to a fine

20
      of $200.00.

21
           (m) A direct or indirect transfer of real property or other

22
      ownership interests resulting from a transaction that qualifies

23
      as a tax-free reorganization under section 368 of the internal

24
      revenue code of 1986.  , 26 U.S.C. 368.  Upon request by the

25
      state tax commission, a property owner shall furnish proof within

26
      45 days that a transfer meets the requirements of this

27
      subdivision.  A property owner who fails to comply with a request



   H05309'99 **
                                  26

 1
      by the state tax commission under this subdivision is subject to

 2
      a fine of $200.00.

 3
           (8) The register of deeds of the county where deeds or other

 4
      title documents are recorded shall notify the  assessing officer 

 5
      ASSESSOR of the appropriate local taxing unit not less than once

 6
      each month of any recorded transaction involving the ownership of

 7
      property and shall make any recorded deeds or other title docu-

 8
      ments available to that county's tax or equalization department.

 9
      Unless notification is provided under subsection (6), the buyer,

10
      grantee, or other transferee of the property shall notify the

11
      appropriate assessing office in the local unit of government in

12
      which the property is located of the transfer of ownership of the

13
      property within 45 days of the transfer of ownership, on a form

14
      prescribed by the state tax commission that states the parties to

15
      the transfer, the date of the transfer, the actual consideration

16
      for the transfer, and the property's parcel identification number

17
      or legal description.  Forms filed in the assessing office of a

18
      local unit of government under this subsection shall be made

19
      available to the county tax or equalization department for the

20
      county in which that local unit of government is located.  This

21
      subsection does not apply to personal property except buildings

22
      described in section 14(6) and personal property described in

23
      section 8(h), (i), and (j).

24
           (9) As used in this section:

25
           (a) "Additions" means that term as defined in section 34d.







   H05309'99 **
                                  27

 1
           (b) "Beneficial use" means the right to possession, use, and

 2
      enjoyment of property, limited only by encumbrances, easements,

 3
      and restrictions of record.

 4
           (c) "Inflation rate" means that term as defined in section

 5
      34d.

 6
           (d) "Losses" means that term as defined in section 34d.

 7
           Sec. 27b.  (1) If the buyer, grantee, or other transferee in

 8
      the immediately preceding transfer of ownership of property does

 9
      not notify the  appropriate assessing office  ASSESSOR as

10
      required  by  UNDER section 27a(8) OR, FOR QUALIFIED AGRICULTURAL

11
      PROPERTY, UNDER SECTION 27E, the property's taxable value shall

12
      be adjusted under section 27a(3) OR, FOR QUALIFIED AGRICULTURAL

13
      PROPERTY, UNDER SECTION 27E(3) and all of the following shall be

14
      levied:

15
           (a) Any additional taxes that would have been levied if the

16
      transfer of ownership had been recorded as required under this

17
      act from the date of transfer.

18
           (b) Interest and penalty from the date the tax would have

19
      been originally levied.

20
           (c) A penalty of $5.00 per day for each separate failure

21
      beginning after the 45 days have elapsed, up to a maximum of

22
      $200.00.

23
           (2) The  appropriate assessing officer  ASSESSOR shall cer-

24
      tify for collection to the treasurer of the local tax collecting

25
      unit if the local tax collecting unit has possession of the tax

26
      roll or the county treasurer if the county has possession of the





   H05309'99 **
                                  28

 1
      tax roll any additional taxes due under subsection (1)(a) and any

 2
      penalty due under subsection (1)(c).

 3
           (3) The treasurer of the local tax collecting unit if the

 4
      local tax collecting unit has possession of the tax roll or the

 5
      county treasurer if the county has possession of the tax roll

 6
      shall collect any taxes, interest, and penalty due pursuant to

 7
      this section, and shall immediately prepare and submit a cor-

 8
      rected tax bill for any additional taxes due under subsection

 9
      (1)(a) and any interest and penalty due under subsection (1)(b).

10
      A penalty due under subsection (1)(c) may be collected with the

11
      immediately succeeding regular tax bill.

12
           (4) Any taxes, interest, and penalty collected pursuant to

13
      subsection (1)(a) and (b) shall be distributed in the same manner

14
      as other delinquent taxes, interest, and penalties are distrib-

15
      uted under this act.  Any penalty collected under

16
      subsection (1)(c) shall be distributed to the local tax collect-

17
      ing unit.

18
           (5) The governing body of a local tax collecting unit may

19
      waive, by resolution, the penalty levied under subsection

20
      (1)(c).

21
           (6) If the taxable value of property is increased under this

22
      section, the  appropriate assessing officer  ASSESSOR shall imme-

23
      diately notify by first-class mail the owner of that property of

24
      that increase in taxable value.  A buyer, grantee, or other

25
      transferee may appeal any increase in taxable value or the levy

26
      of any additional taxes, interest, and penalties under

27
      subsection (1) to the Michigan tax tribunal within 35 days of



   H05309'99 **
                                  29

 1
      receiving the notice of the increase in the property's taxable

 2
      value.  An appeal under this subsection is limited to the issues

 3
      of whether a transfer of ownership has occurred and correcting

 4
      arithmetic errors.  A dispute regarding the valuation of the

 5
      property is not a basis for appeal under this subsection.

 6
           (7) If the taxable value of property is adjusted under sub-

 7
      section (1), the  assessing officer  ASSESSOR making the adjust-

 8
      ment shall file an affidavit with all officials responsible for

 9
      determining assessment figures, rate of taxation, or mathematical

10
      calculations for that property within 30 days of the date the

11
      adjustment is made.  The affidavit shall state the amount of the

12
      adjustment and the amount of additional taxes levied.  The offi-

13
      cials with whom the affidavit is filed shall correct all official

14
      records for which they are responsible to reflect the adjustment

15
      and levy.

16
           Sec. 27c.  If the buyer, grantee, or other transferee in any

17
      preceding transfer of ownership of property does not notify the

18
       appropriate assessing office  ASSESSOR as required by section

19
      27a(8) OR, FOR QUALIFIED AGRICULTURAL PROPERTY, UNDER SECTION

20
      27E(5), a taxing unit may sue that buyer, grantee, or other

21
      transferee as provided in section 47 for all of the following:

22
           (a) Any additional taxes that would have been levied if the

23
      transfer of ownership had been recorded as required under this

24
      act from the date of transfer.

25
           (b) Interest and penalty from the date the tax would have

26
      been originally levied.





   H05309'99 **
                                  30

 1
           (c) A penalty of $5.00 per day for each separate failure

 2
      beginning after the 45 days have elapsed, up to a maximum of

 3
      $200.00.

 4
           SEC. 27E.  (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,

 5
      BEGINNING DECEMBER 31, 2000, PROPERTY THAT IS QUALIFIED AGRICUL-

 6
      TURAL PROPERTY SHALL BE ASSESSED AT 50% OF ITS AGRICULTURAL USE

 7
      VALUE UNDER SECTION 3 OF ARTICLE IX OF THE STATE CONSTITUTION OF

 8
      1963.

 9
           (2) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (3), FOR

10
      TAXES LEVIED IN 2000 AND FOR EACH YEAR AFTER 2000, THE TAXABLE

11
      VALUE OF EACH PARCEL OF QUALIFIED AGRICULTURAL PROPERTY IS THE

12
      LESSER OF THE FOLLOWING:

13
           (A) THE QUALIFIED AGRICULTURAL PROPERTY'S TAXABLE VALUE IN

14
      THE IMMEDIATELY PRECEDING YEAR MINUS ANY LOSSES, MULTIPLIED BY

15
      THE LESSER OF 1.05 OR THE INFLATION RATE, PLUS ALL ADDITIONS.

16
           (B) THE QUALIFIED AGRICULTURAL PROPERTY'S CURRENT AGRICUL-

17
      TURAL USE VALUE.

18
           (C) THE TAXABLE VALUE THE PROPERTY WOULD HAVE HAD IF THE

19
      PROPERTY'S TAXABLE VALUE HAD BEEN DETERMINED UNDER SECTION 27A.

20
           (3) UPON A TRANSFER OF OWNERSHIP OF QUALIFIED AGRICULTURAL

21
      PROPERTY AND IF THE PROPERTY REMAINS QUALIFIED AGRICULTURAL PROP-

22
      ERTY, THE QUALIFIED AGRICULTURAL PROPERTY'S TAXABLE VALUE FOR THE

23
      CALENDAR YEAR FOLLOWING THE YEAR OF THE TRANSFER IS THE

24
      PROPERTY'S TAXABLE VALUE FOR THE CALENDAR YEAR IMMEDIATELY PRE-

25
      CEDING THE TRANSFER ADJUSTED UNDER SUBSECTION (2).

26
           (4) UPON A TRANSFER OF OWNERSHIP OF QUALIFIED AGRICULTURAL

27
      PROPERTY AND IF THE PROPERTY DOES NOT REMAIN QUALIFIED



   H05309'99 **
                                  31

 1
      AGRICULTURAL PROPERTY, THE TAXABLE VALUE OF THE PROPERTY SHALL BE

 2
      ADJUSTED UNDER SECTION 27A(3).

 3
           (5) THE REGISTER OF DEEDS OF THE COUNTY WHERE DEEDS OR OTHER

 4
      TITLE DOCUMENTS ARE RECORDED SHALL NOTIFY THE ASSESSOR NOT LESS

 5
      THAN ONCE EACH MONTH OF ANY RECORDED TRANSACTION INVOLVING THE

 6
      OWNERSHIP OF QUALIFIED AGRICULTURAL PROPERTY AND SHALL MAKE ANY

 7
      RECORDED DEEDS OR OTHER TITLE DOCUMENTS AVAILABLE TO THE

 8
      ASSESSOR.  THE BUYER, GRANTEE, OR OTHER TRANSFEREE OF THE QUALI-

 9
      FIED AGRICULTURAL PROPERTY SHALL NOTIFY THE ASSESSOR OF THE LOCAL

10
      TAX COLLECTING UNIT IN WHICH THE QUALIFIED AGRICULTURAL PROPERTY

11
      IS LOCATED OF THE TRANSFER OF OWNERSHIP OF THE QUALIFIED AGRICUL-

12
      TURAL PROPERTY WITHIN 45 DAYS OF THE TRANSFER OF OWNERSHIP, ON A

13
      FORM PRESCRIBED BY THE STATE TAX COMMISSION THAT STATES THE PAR-

14
      TIES TO THE TRANSFER, THE DATE OF THE TRANSFER, THE ACTUAL CON-

15
      SIDERATION FOR THE TRANSFER, AND THE QUALIFIED AGRICULTURAL

16
      PROPERTY'S PARCEL IDENTIFICATION NUMBER OR LEGAL DESCRIPTION.

17
      FORMS FILED IN THE ASSESSING OFFICE OF A LOCAL TAX COLLECTING

18
      UNIT UNDER THIS SUBSECTION SHALL BE MADE AVAILABLE TO THE COUNTY

19
      TAX OR EQUALIZATION DEPARTMENT FOR THAT COUNTY.  THIS SUBSECTION

20
      DOES NOT APPLY TO PERSONAL PROPERTY EXCEPT BUILDINGS DESCRIBED IN

21
      SECTION 14(6) AND PERSONAL PROPERTY DESCRIBED IN SECTION 8(H),

22
      (I), AND (J).

23
           (6) THE OWNER OF QUALIFIED AGRICULTURAL PROPERTY SHALL

24
      RESCIND THE EXEMPTION PURSUANT TO SECTION 7EE(5) IF PROPERTY

25
      EXEMPT AS QUALIFIED AGRICULTURAL PROPERTY IS NO LONGER QUALIFIED

26
      AGRICULTURAL PROPERTY.





   H05309'99 **
                                  32

 1
           (7) AS USED IN THIS SECTION:

 2
           (A) "ADDITIONS" MEANS THAT TERM AS DEFINED IN SECTION 34D.

 3
           (B) "AGRICULTURAL USE VALUE" MEANS THAT VALUE CALCULATED

 4
      USING THE METHOD DETERMINED BY THE STATE TAX COMMISSION AFTER

 5
      CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE.  THE METHOD

 6
      SHALL INCLUDE, BUT IS NOT LIMITED TO, ALL OF THE FOLLOWING

 7
      CONSIDERATIONS:

 8
           (i) EVIDENCE OF THE PRODUCTIVE CAPABILITY OF THE QUALIFIED

 9
      AGRICULTURAL PROPERTY FOR AGRICULTURAL USE, INCLUDING SOIL

10
      CHARACTERISTICS.

11
           (ii) THE AVERAGE ANNUAL NET RETURN IN THE IMMEDIATELY PRE-

12
      CEDING 5-YEAR PERIOD FOR TYPICAL AGRICULTURAL PROPERTY LOCATED IN

13
      THE COUNTY IN WHICH THE QUALIFIED AGRICULTURAL PROPERTY IS

14
      LOCATED, DISCOUNTED BY AN APPROPRIATE INTEREST RATE.

15
           (iii) THE AVERAGE RENTAL INCOME FOR TYPICAL AGRICULTURAL

16
      PROPERTY LOCATED IN THE COUNTY IN WHICH THE QUALIFIED AGRICUL-

17
      TURAL PROPERTY IS LOCATED.

18
           (C) "BENEFICIAL USE" MEANS THE RIGHT TO POSSESSION, USE, AND

19
      ENJOYMENT OF PROPERTY, LIMITED ONLY BY ENCUMBRANCES, EASEMENTS,

20
      AND RESTRICTIONS OF RECORD.

21
           (D) "INFLATION RATE" MEANS THAT TERM AS DEFINED IN SECTION

22
      34D.

23
           (E) "LOSSES" MEANS THAT TERM AS DEFINED IN SECTION 34D.

24
           (F) "QUALIFIED AGRICULTURAL PROPERTY" MEANS PROPERTY EXEMPT

25
      FROM THE TAX LEVIED BY A LOCAL SCHOOL DISTRICT FOR SCHOOL OPERAT-

26
      ING PURPOSES UNDER SECTION 7EE.





   H05309'99 **
                                  33

 1
           (G) "TRANSFER OF OWNERSHIP" MEANS THAT TERM AS DEFINED IN

 2
      SECTION 27A.

 3
           Sec. 31.  Upon  the completion of said  COMPLETING AND CER-

 4
      TIFYING THE REVIEW OF AN ASSESSMENT roll  and its endorsement in

 5
      manner aforesaid, the same shall be  AS PROVIDED UNDER THIS ACT,

 6
      THAT ASSESSMENT ROLL IS conclusively presumed by all courts and

 7
      tribunals to be valid, and shall not be set aside except  for

 8
      causes hereinafter mentioned  AS OTHERWISE PROVIDED IN THIS ACT.

 9
      The omission of  such indorsement  THE CERTIFICATION shall not

10
      affect the validity of  such  AN ASSESSMENT roll.

11
           Sec. 34.  (1) The county board of commissioners in each

12
      county shall meet in April each year to determine THE county

13
      equalized value, which  equalization  shall be completed and sub-

14
      mitted along with the tabular statement required by section 5 of

15
       Act No. 44 of the Public Acts of 1911, being section 209.5 of

16
      the Michigan Compiled Laws  1911 PA 44, MCL 209.5, to the state

17
      tax commission before the first Monday in May.  The business

18
       which  THAT the COUNTY board OF COMMISSIONERS may perform shall

19
      be conducted at a public meeting of the COUNTY board OF

20
      COMMISSIONERS held in compliance with the open meetings act,  Act

21
      No. 267 of the Public Acts of 1976, as amended, being sections

22
      15.261 to 15.275 of the Michigan Compiled Laws  1976 PA 267, MCL

23
      15.261 TO 15.275.  Public notice of the time, date, and place of

24
      the meeting shall be given in the manner required by  Act No. 267

25
      of the Public Acts of 1976, as amended  THE OPEN MEETINGS ACT,

26
      1976 PA 267, MCL 15.261 TO 15.275.  Each year the county board of

27
      commissioners shall advise the local taxing units  when  IF the



   H05309'99 **
                                  34

 1
      state tax commission increases the equalized value of the county

 2
      as established by the  board of  county BOARD OF commissioners

 3
      and each taxing unit other than a city, township, school dis-

 4
      trict, intermediate school district, or community college dis-

 5
      trict, shall immediately reduce its maximum authorized millage

 6
      rate, as determined after any reduction  caused by  PURSUANT TO

 7
      section 34d, so that  subsequent to  AFTER the increase ordered

 8
      by the state tax commission pursuant to  Act No. 44 of the Public

 9
      Acts of 1911, as amended, being sections 209.1 to 209.8 of the

10
      Michigan Compiled Laws  1911 PA 44, MCL 209.1 TO 209.8, total

11
      property taxes levied for that unit shall not exceed that which

12
      would have been levied for that unit at its maximum authorized

13
      millage rate, as determined after any reduction  caused by 

14
      PURSUANT TO section 34d, if there had not been an increase in

15
      valuation by the state TAX COMMISSION.  If its state equalized

16
      valuation exceeds its assessed valuation by 5.0% or more in 1982

17
      or by any amount in 1983 or any year  thereafter  AFTER 1983, a

18
      city or township shall reduce its maximum authorized millage

19
      rate, as determined after any reduction  caused by  PURSUANT TO

20
      section 34d, so that total property taxes levied for that unit do

21
      not exceed that which would have been levied based on its

22
      assessed valuation.

23
           (2) The county board of commissioners shall examine the

24
      assessment rolls of the townships or cities and ascertain whether

25
      the real and personal property in the respective townships or

26
      cities has been equally and uniformly assessed  at true cash

27
      value  AS REQUIRED UNDER THIS ACT.  If, on the examination, the



   H05309'99 **
                                  35

 1
      county board of commissioners considers the assessments to be

 2
      relatively unequal, it shall equalize the assessments by adding

 3
      to or deducting from the valuation of the taxable property  in a

 4
      township or city  an amount  which  THAT in the judgment of
   the

 5
      county board of commissioners will produce a sum  which  THAT

 6
      represents the true cash value of that property AND, FOR QUALI-

 7
      FIED AGRICULTURAL PROPERTY, THE AGRICULTURAL USE VALUE, and the

 8
      amount added to or deducted from the valuations  in a township or

 9
      city  shall be entered upon the records.  The county board of

10
      commissioners and the state tax commission shall equalize real

11
      and personal property separately by adding to or deducting from

12
      the valuation of taxable real property, and by adding to or

13
      deducting from the valuation of taxable personal property in a

14
      township, city, or county, an amount  which  THAT will produce a

15
      sum  which  THAT represents the proportion of true cash value

16
      established by the legislature AND, FOR QUALIFIED AGRICULTURAL

17
      PROPERTY, THE AGRICULTURAL USE VALUE.  Beginning December 31,

18
      1980, the county board of commissioners and the state tax commis-

19
      sion shall equalize separately the following classes of real

20
      property by adding to or deducting from the valuation of agricul-

21
      tural,  developmental,  residential, commercial, industrial, and

22
      timber cutover taxable real property, and by adding to or deduct-

23
      ing from the valuation of taxable personal property in a town-

24
      ship, city, or county, an amount  as  THAT will produce a sum

25
       which  THAT represents the proportion of true cash value estab-

26
      lished by the legislature AND, FOR QUALIFIED AGRICULTURAL

27
      PROPERTY, THE AGRICULTURAL USE VALUE.  The tax roll and the tax



   H05309'99 **
                                  36

 1
      statement shall clearly set forth the latest state equalized

 2
      valuation for each item or property, which shall be determined by

 3
      using a separate factor for personal property and a separate

 4
      factor for real property as equalized.  Beginning December 31,

 5
      1980, the tax roll and the tax statement shall clearly set forth

 6
      the latest state equalized valuation for each item or property,

 7
      which shall be determined by using a separate factor for personal

 8
      property and a separate factor for each classification for real

 9
      property as equalized.  Factors used in determining the state

10
      equalized valuation for real and personal property on the tax

11
      roll shall be rounded up to not less than 4 decimal places.

12
      Equalized values for both real and personal property shall be

13
      equalized uniformly at the same proportion of true cash value in

14
      the county.  The county board of commissioners shall also cause

15
      to be entered upon its records the aggregate valuation of the

16
      taxable real and personal property of each township or city in

17
      its county as determined by the county board OF COMMISSIONERS.

18
      The county board of commissioners shall also make alterations in

19
      the description of any  land  PROPERTY on the rolls  as is 
   nec-

20
      essary to render the descriptions conformable to the requirements

21
      of this act.  After the rolls are equalized, each shall be certi-

22
      fied  to  by the chairperson and the clerk of the COUNTY board OF

23
      COMMISSIONERS and be delivered to the supervisor of the proper

24
      township or city, who shall file and keep the roll in his or her

25
      office.

26
           (3) The county board of commissioners of a county shall

27
      establish and maintain a department to survey assessments and



   H05309'99 **
                                  37

 1
      assist the board of commissioners in the matter of equalization

 2
      of assessments, and may employ in that department NECESSARY tech-

 3
      nical and clerical personnel.  which in its judgment are consid-

 4
      ered necessary.  The personnel of the department shall be under

 5
      the direct supervision and control of a director of the tax or

 6
      equalization department who may designate an employee of the

 7
      department as his or her deputy.  The director of the county tax

 8
      or equalization department shall be appointed by the county board

 9
      of commissioners.  The county board of commissioners, through the

10
      department, may furnish assistance to local assessing officers in

11
      the performance of duties imposed upon those officers  by  UNDER

12
      this act, including the development and maintenance of accurate

13
      property descriptions, the discovery, listing, and valuation of

14
      properties for tax purposes, and the development and use of uni-

15
      form valuation standards and techniques for the assessment of

16
      property.

17
           (4) The supervisor of a township or, with the approval of

18
      the governing body, the certified assessor of a township or city,

19
      or the intermediate district board of education, or the board of

20
      education of an incorporated city or village aggrieved by the

21
      action of the county board of commissioners  ,  in equalizing the

22
      valuations of the townships or cities of the county  ,  may

23
      appeal from the determination to the  state  tax tribunal in the

24
      manner provided by law.  An appeal from the determination by the

25
      county board of commissioners shall be filed with the clerk of

26
      the tribunal by a written or printed petition  which  THAT shall

27
      set forth in detail the reasons for taking the appeal.  The



   H05309'99 **
                                  38

 1
      petition shall be signed and sworn to by the supervisor, the

 2
      certified assessor, or a majority of the members of the board of

 3
      education taking the appeal, shall show that a certain township,

 4
      city, or school district has been discriminated against in the

 5
      equalization, and shall  pray  REQUEST that the  state  tax
   tri-

 6
      bunal proceed at its earliest convenience to review the action

 7
      from which the appeal is taken.  The  state  tax tribunal shall

 8
       , upon hearing,  determine if  in its judgment there is a show-

 9
      ing that  the equalization complained of is unfair, unjust, ineq-

10
      uitable, or discriminatory.  The  state  tax tribunal  shall

11
      have  HAS the same authority to consider and pass upon the action

12
      and determination of the county board of commissioners in equal-

13
      izing valuations as it has to consider complaints relative to the

14
      assessment and taxation of property.  The  state  tax tribunal

15
      may order the county board of commissioners to reconvene and to

16
      cause the assessment rolls of the county to be brought before it,

17
      may summon the commissioners of the county to give evidence in

18
      relation to the equalization, and may take further action and may

19
      make further investigation  in the premises  as it considers

20
      necessary.  The  state  tax tribunal shall fix a valuation on all

21
      property of the county.  If the  state  tax tribunal decides that

22
      the determination and equalization made by the county board of

23
      commissioners is correct, further action shall not be taken.  If

24
      the  state  tax tribunal, after the hearing, decides that the

25
      valuations of the county were improperly equalized, it shall pro-

26
      ceed to make deductions from, or additions to, the valuations of

27
      the respective townships, cities, or school districts as  may be



   H05309'99 **
                                  39

 1
      considered proper  NECESSARY,  and in so doing the tribunal shall

 2
      have  WITH the same powers  as  THAT the county board of
   commis-

 3
      sioners had in the first instance.  The deductions or additions

 4
      shall decrease or increase the state equalized valuation of the

 5
      local unit affected but shall not increase or decrease the total

 6
      state equalized valuation of the county in the case of an appeal

 7
      under this section to the  state  tax tribunal.  If the tax tri-

 8
      bunal finds that the valuations of a class of property in a

 9
      county were improperly equalized by that county and determines

10
      that the total value of that class of property in the county may

11
      not be at the level required by law, prior to entry of a final

12
      order  ,  the tax tribunal shall forward its findings and deter-

13
      mination to the state tax commission.  Within 90 days after

14
      receiving the findings and determination of the tax tribunal, the

15
      state tax commission shall determine whether the state equalized

16
      valuation of that class of property in the county was set at the

17
      level prescribed by law or should be revised to provide unifor-

18
      mity among the counties and shall enter an order consistent with

19
      the state tax commission's findings.  The tax tribunal shall

20
      enter a final order based upon the revised state equalized valua-

21
      tion, if any,  which  THAT is adopted by the state tax

22
      commission.  The  state  tax tribunal immediately after complet-

23
      ing its revision of the equalization of the valuation of the sev-

24
      eral assessment districts shall report its action to the county

25
      board of commissioners and board of education if the board has

26
      instituted the appeal by filing its report with the clerk of the

27
      county board of commissioners.  The action of the  state  tax



   H05309'99 **
                                  40

 1
      tribunal  in the premises  shall constitute the equalization of

 2
      the county for the tax year.

 3
            (5) For purposes of appeals pursuant to subsection (4) in

 4
      1981 only, an agent of a supervisor, including an assessor, shall

 5
      be considered to have the authority to file and sign a petition

 6
      for an appeal, and any otherwise timely submitted petition in

 7
      1981 by an agent of a supervisor shall be reviewed by the tribu-

 8
      nal as if submitted by the supervisor. 

 9
           Sec. 34c.  (1) Not later than the first Monday in March in

10
      each year, the assessor shall classify every item of assessable

11
      property according to the definitions contained in this section.

12
      Following the March board of review, the assessor shall tabulate

13
      the total number of items and the valuations as approved by the

14
      board of review for each classification and for the totals of

15
      real and personal property in the local tax collecting unit.  The

16
      assessor shall transmit to the county equalization department and

17
      to the state tax commission the tabulation of assessed valuations

18
      and other statistical information the state tax commission con-

19
      siders necessary to meet the requirements of this act and  Act

20
      No. 44 of the Public Acts of 1911, being sections 209.1 to 209.8

21
      of the Michigan Compiled Laws  1911 PA 44, MCL 209.1 TO 209.8.

22
           (2) The classifications of assessable real property are

23
      described as follows:

24
           (a) Agricultural real property includes parcels used par-

25
      tially or wholly for agricultural  operations  USE, with or with-

26
      out buildings, and parcels assessed to the department of natural

27
      resources and valued by the state tax commission.  As used in



   H05309'99 **
                                  41

 1
      this subdivision,  "agricultural operations" means the

 2
      following:

 3
           (i) Farming in all its branches, including cultivating

 4
      soil.

 5
           (ii) Growing and harvesting any agricultural, horticultural,

 6
      or floricultural commodity.

 7
           (iii) Dairying.

 8
           (iv) Raising livestock, bees, fish, fur-bearing animals, or

 9
      poultry.

10
           (v) Turf and tree farming.

11
           (vi) Performing any practices on a farm incident to, or in

12
      conjunction with, farming operations.  A  "AGRICULTURAL USE"

13
      MEANS SUBSTANTIALLY UNDEVELOPED LAND DEVOTED TO THE PRODUCTION OF

14
      PLANTS AND ANIMALS USEFUL TO HUMANS, INCLUDING FORAGES AND SOD

15
      CROPS; GRAINS, FEED CROPS, AND FIELD CROPS; DAIRY AND DAIRY PRO-

16
      DUCTS; POULTRY AND POULTRY PRODUCTS; LIVESTOCK, INCLUDING BREED-

17
      ING AND GRAZING OF CATTLE, SWINE, CAPTIVE CERVIDAE, AND SIMILAR

18
      ANIMALS; BERRIES; HERBS; FLOWERS; SEEDS; GRASSES; NURSERY STOCK;

19
      FRUITS; VEGETABLES; CHRISTMAS TREES; AND OTHER SIMILAR USES AND

20
      ACTIVITIES.  AGRICULTURAL USE INCLUDES PROPERTY ENROLLED IN A

21
      FEDERAL ACREAGE SET-ASIDE PROGRAM OR A FEDERAL CONSERVATION

22
      PROGRAM.  AGRICULTURAL USE DOES NOT INCLUDE SUBSTANTIALLY UNDE-

23
      VELOPED LAND THE PRIMARY PURPOSE FOR WHICH IS THE MANAGEMENT AND

24
      HARVESTING OF A WOODLOT, OR A commercial storage, processing,

25
      distribution, marketing, or shipping operation.  is not part of

26
      agricultural operations. 





   H05309'99 **
                                  42

 1
           (b) Commercial real property includes the following:

 2
           (i) Platted or unplatted parcels used for commercial

 3
      purposes, whether wholesale, retail, or service, with or without

 4
      buildings.

 5
           (ii) Parcels used by fraternal societies.

 6
           (iii) Parcels used as golf courses, boat clubs, ski areas,

 7
      or apartment buildings with more than 4 units.

 8
            (c) Developmental real property includes parcels containing

 9
      more than 5 acres without buildings, or more than 15 acres with a

10
      market value in excess of its value in use.  Developmental real

11
      property may include farm land or open space land adjacent to a

12
      population center, or farm land subject to several competing val-

13
      uation influences. 

14
           (C)  (d)  Industrial real property includes the following:

15
           (i) Platted or unplatted parcels used for manufacturing and

16
      processing purposes, with or without buildings.

17
           (ii) Parcels used for utilities sites for generating plants,

18
      pumping stations, switches, substations, compressing stations,

19
      warehouses, rights-of-way, flowage land, and storage areas.

20
           (iii) Parcels used for removal or processing of gravel,

21
      stone, or mineral ores, whether valued by the local assessor or

22
      by the state geologist.

23
           (D)  (e)  Residential real property includes the following:

24
           (i) Platted or unplatted parcels, with or without buildings,

25
      and condominium apartments located within or outside a village or

26
      city, which are used for, or probably will be used for,

27
      residential purposes.



   H05309'99 **
                                  43

 1
           (ii) Parcels that are used for, or probably will be used

 2
      for, recreational purposes, such as lake lots and hunting lands,

 3
      located in an area used predominantly for recreational purposes.

 4
           (E)  (f)  Timber-cutover real property includes parcels that

 5
      are stocked with forest products of merchantable type and size,

 6
      cutover forest land with little or no merchantable products, and

 7
      marsh lands or other barren land.  However, when a typical pur-

 8
      chase of this type of land is for residential or recreational

 9
      uses, the classification shall be changed to residential.

10
           (3) The classifications of assessable personal property are

11
      described as follows:

12
           (a) Agricultural personal property includes farm buildings

13
      on leased land and any agricultural equipment and produce not

14
      exempt by law.

15
           (b) Commercial personal property includes the following:

16
           (i) All equipment, furniture, and fixtures on commercial

17
      parcels, and inventories not exempt by law.

18
           (ii) Outdoor advertising signs and billboards.

19
           (iii) Well drilling rigs and other equipment attached to a

20
      transporting vehicle but not designed for operation while the

21
      vehicle is moving on the highway.

22
           (iv) Unlicensed commercial vehicles or commercial vehicles

23
      licensed as special mobile equipment or by temporary permits.

24
           (v) Commercial buildings on leased land.

25
           (c) Industrial personal property includes the following:

26
           (i) All machinery and equipment, furniture and fixtures, and

27
      dies on industrial parcels, and inventories not exempt by law.



   H05309'99 **
                                  44

 1
           (ii) Industrial buildings on leased land.

 2
           (iii) Personal property of mining companies valued by the

 3
      state geologist.

 4
           (d) Residential personal property includes a home, cottage,

 5
      or cabin on leased land, and a mobile home that would be asses-

 6
      sable as real property under section 2a except that the land on

 7
      which it is located is not assessable because the land is

 8
      exempt.

 9
           (e) Utility personal property includes the following:

10
           (i) Electric transmission and distribution systems, substa-

11
      tion equipment, spare parts, gas distribution systems, and water

12
      transmission and distribution systems.

13
           (ii) Oil wells and allied equipment such as tanks, gathering

14
      lines, field pump units, and buildings.

15
           (iii) Inventories not exempt by law.

16
           (iv) Gas wells with allied equipment and gathering lines.

17
           (v) Oil or gas field equipment stored in the open or in

18
      warehouses such as drilling rigs, motors, pipes, and parts.

19
           (vi) Gas storage equipment.

20
           (vii) Transmission lines of gas or oil transporting

21
      companies.

22
           (viii) Utility buildings on leased land.

23
           (4) Buildings on leased land of any classification are

24
      improvements where the owner of the improvement is not the owner

25
      of the land or fee and has not bound himself or herself to pay

26
      taxes levied against the land or fee and the improvement has been

27
      assessed as personal property pursuant to section 14(6).



   H05309'99 **
                                  45

 1
           (5) If the total usage of a parcel includes more than 1

 2
      classification, the assessor shall determine the classification

 3
      that most significantly influences the total valuation of the

 4
      parcel.

 5
           (6) An owner of any assessable property who disputes the

 6
      classification of that parcel shall notify the assessor and may

 7
      protest the assigned classification to the March board of

 8
      review.  An owner or assessor may appeal the decision of the

 9
      March board of review by filing a petition with the state tax

10
      commission not later than June 30 in that tax year.  The state

11
      tax commission shall arbitrate the petition based on the written

12
      petition and the written recommendations of the assessor and the

13
      state tax commission staff.  An appeal may not be taken from the

14
      decision of the state tax commission regarding classification

15
      complaint petitions and the state tax commission's determination

16
      is final and binding for the year of the petition.

17
           (7) The department of treasury may appeal the classification

18
      of any assessable property to the residential and small claims

19
      division of the Michigan tax tribunal not later than December 31

20
      in the tax year for which the classification is appealed.

21
           (8) This section shall not be construed to encourage the

22
      assessment of property at other than the uniform percentage of

23
      true cash value prescribed by this act.

24
           (9) AN OWNER OF PROPERTY FOR WHICH THE CLASSIFICATION IS

25
      CHANGED FROM AGRICULTURAL REAL PROPERTY TO A DIFFERENT CLASSIFI-

26
      CATION MAY FILE AN AFFIDAVIT UNDER SECTION 7EE NOT LATER THAN MAY





   H05309'99 **
                                  46

 1
      1 IN THAT TAX YEAR, CLAIMING AN EXEMPTION OF THAT PROPERTY AS

 2
      QUALIFIED AGRICULTURAL PROPERTY.

 3
           Sec. 34d.  (1) As used in this section or section 27a, or

 4
      section 3 or 31 of article IX of the state constitution of 1963:

 5
           (a) For taxes levied before 1995, "additions" means all

 6
      increases in value caused by new construction or a physical addi-

 7
      tion of equipment or furnishings, and the value of property that

 8
      was exempt from taxes or not included on the assessment unit's

 9
      immediately preceding year's assessment roll.

10
           (b) For taxes levied after 1994, "additions" means, except

11
      as provided in subdivision (c), all of the following:

12
           (i) Omitted real property.  As used in this subparagraph,

13
      "omitted real property" means previously existing tangible real

14
      property not included in the assessment.  Omitted real property

15
      shall not increase taxable value as an addition unless the

16
      assessing jurisdiction has a property record card or other docu-

17
      mentation showing that the omitted real property was not previ-

18
      ously included in the assessment.  The assessing jurisdiction has

19
      the burden of proof in establishing whether the omitted real

20
      property is included in the assessment.  Omitted real property

21
      for the current and the 2 immediately preceding years, discovered

22
      after the assessment roll has been completed, shall be added to

23
      the tax roll pursuant to the procedures established in section

24
      154.  For purposes of determining the taxable value of real prop-

25
      erty under section 27a, the value of omitted real property is

26
      based on the value and the ratio of taxable value to true cash





   H05309'99 **
                                  47

 1
      value the omitted real property would have had if the property

 2
      had not been omitted.

 3
           (ii) Omitted personal property.  As used in this subpara-

 4
      graph, "omitted personal property" means previously existing tan-

 5
      gible personal property not included in the assessment.  Omitted

 6
      personal property shall be added to the tax roll pursuant to sec-

 7
      tion 154.

 8
           (iii) New construction.  As used in this subparagraph, "new

 9
      construction" means property not in existence on the immediately

10
      preceding tax day and not replacement construction.  New con-

11
      struction includes the physical addition of equipment or furnish-

12
      ings, subject to the provisions set forth in section 27(2)(a) to

13
      (o).  For purposes of determining the taxable value of property

14
      under section 27a, the value of new construction is the true cash

15
      value of the new construction multiplied by 0.50.

16
           (iv) Previously exempt property.  As used in this subpara-

17
      graph, "previously exempt property" means property that was

18
      exempt from ad valorem taxation under this act on the immediately

19
      preceding tax day but is subject to ad valorem taxation on the

20
      current tax day under this act.  For purposes of determining the

21
      taxable value of real property under section 27a:

22
           (A) The value of property previously exempt under section 7u

23
      is the taxable value the entire parcel of property would have had

24
      if that property had not been exempt, minus the product of the

25
      entire parcel's taxable value in the immediately preceding year

26
      and the lesser of 1.05 or the inflation rate.





   H05309'99 **
                                  48

 1
           (B) The taxable value of property that is a facility as that

 2
      term is defined in section 2 of  Act No. 198 of the Public Acts

 3
      of 1974, being section 207.552 of the Michigan Compiled Laws 

 4
      1974 PA 198, MCL 207.552, that was previously exempt under

 5
      section 7k is the taxable value that property would have had

 6
      under this act if it had not been exempt.

 7
           (C) The value of property previously exempt under any other

 8
      section of law is the true cash value of the previously exempt

 9
      property multiplied by 0.50.

10
           (v) Replacement construction.  As used in this subparagraph,

11
      "replacement construction" means construction that replaced prop-

12
      erty damaged or destroyed by accident or act of God and that

13
      occurred after the immediately preceding tax day to the extent

14
      the construction's true cash value does not exceed the true cash

15
      value of property that was damaged or destroyed by accident or

16
      act of God in the immediately preceding 3 years.  For purposes of

17
      determining the taxable value of property under section 27a, the

18
      value of the replacement construction is the true cash value of

19
      the replacement construction multiplied by a fraction the numera-

20
      tor of which is the taxable value of the property to which the

21
      construction was added in the immediately preceding year and the

22
      denominator of which is the true cash value of the property to

23
      which the construction was added in the immediately preceding

24
      year, and then multiplied by the lesser of 1.05 or the inflation

25
      rate.

26
           (vi) An increase in taxable value attributable to the

27
      complete or partial remediation of environmental contamination



   H05309'99 **
                                  49

 1
      existing on the immediately preceding tax day.  The department of

 2
      environmental quality shall determine the degree of remediation

 3
      based on information available in existing department of environ-

 4
      mental quality records or information made available to the

 5
      department of environmental quality if the  appropriate assessing

 6
      officer  ASSESSOR for a local tax collecting unit requests that

 7
      determination.  The increase in taxable value attributable to the

 8
      remediation is the increase in true cash value attributable to

 9
      the remediation multiplied by a fraction the numerator of which

10
      is the taxable value of the property had it not been contaminated

11
      and the denominator of which is the true cash value of the prop-

12
      erty had it not been contaminated.

13
           (vii) An increase in the value attributable to the

14
      property's occupancy rate if either a loss, as that term is

15
      defined in this section, had been previously allowed because of a

16
      decrease in the property's occupancy rate or if the value of new

17
      construction was reduced because of a below-market occupancy

18
      rate.  For purposes of determining the taxable value of property

19
      under section 27a, the value of an addition for the increased

20
      occupancy rate is the product of the increase in the true cash

21
      value of the property attributable to the increased occupancy

22
      rate multiplied by a fraction the numerator of which is the tax-

23
      able value of the property in the immediately preceding year and

24
      the denominator of which is the true cash value of the property

25
      in the immediately preceding year, and then multiplied by the

26
      lesser of 1.05 or the inflation rate.





   H05309'99 **
                                  50

 1
           (viii) Public services.  As used in this subparagraph,

 2
      "public services" means water service, sewer service, a primary

 3
      access road, natural gas service, electrical service, telephone

 4
      service, sidewalks, or street lighting.  For purposes of deter-

    5 mining the taxable value of real property under section 27a, the

 6
      value of public services is the amount of increase in true cash

 7
      value of the property attributable to the available public serv-

 8
      ices multiplied by 0.50 and shall be added in the calendar year

 9
      following the calendar year when those public services are ini-

10
      tially available.

11
           (c) For taxes levied after 1994, additions do not include

12
      increased value attributable to any of the following:

13
           (i) Platting, splits, or combinations of property.

14
           (ii) A change in the zoning of property.

15
           (iii) For the purposes of the calculation of the millage

16
      reduction fraction under subsection (7) only, increased taxable

17
      value under section 27a(3) OR, FOR QUALIFIED AGRICULTURAL PROPER-

18
      TY, UNDER SECTION 27E(3) after a transfer of ownership of

19
      property.

20
           (d) "Assessed valuation of property as finally equalized"

21
      means taxable value AS DETERMINED under section 27a.

22
           (e) "Financial officer" means the officer responsible for

23
      preparing the budget of a unit of local government.

24
           (f) "General price level" means the annual average of the 12

25
      monthly values for the United States consumer price index for all

26
      urban consumers as defined and officially reported by the United

27
      States department of labor, bureau of labor statistics.



   H05309'99 **
                                  51

 1
           (g) For taxes levied before 1995, "losses" means a decrease

 2
      in value caused by the removal or destruction of real or personal

 3
      property and the value of property taxed in the immediately pre-

 4
      ceding year that has been exempted or removed from the assessment

 5
      unit's assessment roll.

 6
           (h) For taxes levied after 1994, "losses" means, except as

 7
      provided in subdivision (i), all of the following:

 8
           (i) Property that has been destroyed or removed.  For pur-

 9
      poses of determining the taxable value of property under section

10
      27a, the value of property destroyed or removed is the product of

11
      the true cash value of that property multiplied by a fraction the

12
      numerator of which is the taxable value of that property in the

13
      immediately preceding year and the denominator of which is the

14
      true cash value of that property in the immediately preceding

15
      year.

16
           (ii) Property that was subject to ad valorem taxation under

17
      this act in the immediately preceding year that is now exempt

18
      from ad valorem taxation under this act.  For purposes of deter-

19
      mining the taxable value of property under section 27a, the value

20
      of property exempted from ad valorem taxation under this act is

21
      the amount exempted.

22
           (iii) An adjustment in value, if any, because of a decrease

23
      in the property's occupancy rate, to the extent provided by law.

24
      For purposes of determining the taxable value of real property

25
      under section 27a, the value of a loss for a decrease in the

26
      property's occupancy rate is the product of the decrease in the

27
      true cash value of the property attributable to the decreased



   H05309'99 **
                                  52

 1
      occupancy rate multiplied by a fraction the numerator of which is

 2
      the taxable value of the property in the immediately preceding

 3
      year and the denominator of which is the true cash value of the

 4
      property in the immediately preceding year.

 5
           (iv) A decrease in taxable value attributable to environmen-

 6
      tal contamination existing on the immediately preceding tax day.

 7
      The department of environmental quality shall determine the

 8
      degree to which environmental contamination limits the use of

 9
      property based on information available in existing department of

10
      environmental quality records or information made available to

11
      the department of environmental quality if the  appropriate

12
      assessing officer  ASSESSOR for a local tax collecting unit

13
      requests that determination.  The department of environmental

14
      quality's determination of the degree to which environmental con-

15
      tamination limits the use of property shall be based on the cri-

16
      teria established for the  classifications  CATEGORIES set forth

17
      in section 20120a(1) of part 201  (environmental remediation)  of

18
      the natural resources and environmental protection act,  Act

19
      No. 451 of the Public Acts of 1994, being section 324.20120a of

20
      the Michigan Compiled Laws  1994 PA 451, MCL 324.20120A.  The

21
      decrease in taxable value attributable to the contamination is

22
      the decrease in true cash value attributable to the contamination

23
      multiplied by a fraction the numerator of which is the taxable

24
      value of the property had it not been contaminated and the denom-

25
      inator of which is the true cash value of the property had it not

26
      been contaminated.





   H05309'99 **
                                  53

 1
           (i) For taxes levied after 1994, losses do not include

 2
      decreased value attributable to either of the following:

 3
           (i) Platting, splits, or combinations of property.

 4
           (ii) A change in the zoning of property.

 5
           (j) "New construction and improvements" means additions less

 6
      losses.

 7
           (k) "Current year" means the year for which the millage lim-

 8
      itation is being calculated.

 9
           (l) "Inflation rate" means the ratio of the general price

10
      level for the state fiscal year ending in the calendar year imme-

11
      diately preceding the current year divided by the general price

12
      level for the state fiscal year ending in the calendar year

13
      before the year immediately preceding the current year.

14
           (2) On or before the first Monday in May of each year, the

15
       assessing officer  ASSESSOR of each township or city shall tabu-

16
      late the tentative taxable value as approved by the local board

17
      of review and as modified by county equalization for each classi-

18
      fication of property that is separately equalized for each unit

19
      of local government and provide the tabulated tentative taxable

20
      values to the county equalization director.  The tabulation by

21
      the  assessing officer  ASSESSOR shall contain additions and

22
      losses for each classification of property that is separately

23
      equalized for each unit of local government or part of a unit of

24
      local government in the township or city.  If as a result of

25
      state equalization the taxable value of property changes, the

26
       assessing officer  ASSESSOR of each township or city shall

27
      revise the calculations required by this subsection on or before



   H05309'99 **
                                  54

 1
      the Friday following the fourth Monday in May.  The county

 2
      equalization director shall compute these amounts and the current

 3
      and immediately preceding year's taxable values for each classi-

 4
      fication of property that is separately equalized for each unit

 5
      of local government that levies taxes under this act within the

 6
      boundary of the county.  The county equalization director shall

 7
      cooperate with equalization directors of neighboring counties, as

 8
      necessary, to make the computation for units of local government

 9
      located in more than 1 county.  The county equalization director

10
      shall calculate the millage reduction fraction for each unit of

11
      local government in the county for the current year.  The finan-

12
      cial officer for each taxing jurisdiction shall calculate the

13
      compounded millage reduction fractions beginning in 1980 result-

14
      ing from the multiplication of successive millage reduction frac-

15
      tions and shall recognize a local voter action to increase the

16
      compounded millage reduction fraction to a maximum of 1 as a new

17
      beginning fraction.  Upon request of the superintendent of the

18
      intermediate school district, the county equalization director

19
      shall transmit the complete computations of the taxable values to

20
      the superintendent of the intermediate school district within

21
      that county.  At the request of the presidents of community col-

22
      leges, the county equalization director shall transmit the com-

23
      plete computations of the taxable values to the presidents of

24
      community colleges within the county.

25
           (3) On or before the first Monday in June of each year, the

26
      county equalization director shall deliver the statement of the





   H05309'99 **
                                  55

 1
      computations signed by the county equalization director to the

 2
      county treasurer.

 3
           (4) On or before the second Monday in June of each year, the

 4
      treasurer of each county shall certify the immediately preceding

 5
      year's taxable values, the current year's taxable values, the

 6
      amount of additions and losses for the current year, and the cur-

 7
      rent year's millage reduction fraction for each unit of local

 8
      government that levies a property tax in the county.

 9
           (5) The financial officer of each unit of local government

10
      shall make the computation of the tax rate using the data certi-

11
      fied by the county treasurer and the state tax commission.  At

12
      the annual session in October, the county board of commissioners

13
      shall not authorize the levy of a tax unless the governing body

14
      of the taxing jurisdiction has certified that the requested mill-

15
      age has been reduced, if necessary, in compliance with section 31

16
      of article IX of the state constitution of 1963.

17
           (6) The number of mills permitted to be levied in a tax year

18
      is limited as provided in this section pursuant to section 31 of

19
      article IX of the state constitution of 1963.  A unit of local

20
      government shall not levy a tax rate greater than the rate deter-

21
      mined by reducing its maximum rate or rates authorized by law or

22
      charter by a millage reduction fraction as provided in this sec-

23
      tion without voter approval.

24
           (7) A millage reduction fraction shall be determined for

25
      each year for each local unit of government.  For ad valorem

26
      property taxes that became a lien before January 1, 1983, the

27
      numerator of the fraction shall be the total state equalized



   H05309'99 **
                                  56

 1
      valuation for the immediately preceding year multiplied by the

 2
      inflation rate and the denominator of the fraction shall be the

 3
      total state equalized valuation for the current year minus new

 4
      construction and improvements.  For ad valorem property taxes

 5
      that become a lien after December 31, 1982 and through

 6
      December 31, 1994, the numerator of the fraction shall be the

 7
      product of the difference between the total state equalized valu-

 8
      ation for the immediately preceding year minus losses multiplied

 9
      by the inflation rate and the denominator of the fraction shall

10
      be the total state equalized valuation for the current year minus

11
      additions.  For ad valorem property taxes that are levied after

12
      December 31, 1994, the numerator of the fraction shall be the

13
      product of the difference between the total taxable value for the

14
      immediately preceding year minus losses multiplied by the infla-

15
      tion rate and the denominator of the fraction shall be the total

16
      taxable value for the current year minus additions.  For each

17
      year after 1993, a millage reduction fraction shall not exceed

18
      1.

19
           (8) The compounded millage reduction fraction for each year

20
      after 1980 shall be calculated by multiplying the local unit's

21
      previous year's compounded millage reduction fraction by the cur-

22
      rent year's millage reduction fraction.  Beginning with 1980 tax

23
      levies, the compounded millage reduction fraction for the year

24
      shall be multiplied by the maximum millage rate authorized by law

25
      or charter for the unit of local government for the year, except

26
      as provided by subsection (9).  A compounded millage reduction

27
      fraction shall not exceed 1.



   H05309'99 **
                                  57

 1
           (9) The millage reduction shall be determined separately for

 2
      authorized millage approved by the voters.  The limitation on

 3
      millage authorized by the voters on or before May 31 of a year

 4
      shall be calculated beginning with the millage reduction fraction

 5
      for that year.  Millage authorized by the voters after May 31

 6
      shall not be subject to a millage reduction until the year fol-

 7
      lowing the voter authorization which shall be calculated begin-

 8
      ning with the millage reduction fraction for the year following

 9
      the authorization.  The first millage reduction fraction used in

10
      calculating the limitation on millage approved by the voters

11
      after January 1, 1979 shall not exceed 1.

12
           (10) A millage reduction fraction shall be applied sepa-

13
      rately to the aggregate maximum millage rate authorized by a

14
      charter and to each maximum millage rate authorized by state law

15
      for a specific purpose.

16
           (11) A unit of local government may submit to the voters for

17
      their approval the levy in that year of a tax rate in excess of

18
      the limit set by this section.  The ballot question shall ask the

19
      voters to approve the levy of a specific number of mills in

20
      excess of the limit.  The provisions of this section do not allow

21
      the levy of a millage rate in excess of the maximum rate autho-

22
      rized by law or charter.  If the authorization to levy millage

23
      expires after 1993 and a local governmental unit is asking voters

24
      to renew the authorization to levy the millage, the ballot ques-

25
      tion shall ask for renewed authorization for the number of expir-

26
      ing mills as reduced by the millage reduction required by this

27
      section.  If the election occurs before June 1 of a year, the



   H05309'99 **
                                  58

 1
      millage reduction is based on the immediately preceding year's

 2
      millage reduction applicable to that millage.  If the election

 3
      occurs after May 31 of a year, the millage reduction shall be

 4
      based on that year's millage reduction applicable to that millage

 5
      had it not expired.

 6
           (12) A reduction or limitation under this section shall not

 7
      be applied to taxes imposed for the payment of principal and

 8
      interest on bonds or other evidence of indebtedness or for the

 9
      payment of assessments or contract obligations in anticipation of

10
      which bonds are issued that were authorized before December 23,

11
      1978, as provided by former section 4 of chapter I of the munici-

12
      pal finance act,  Act No. 202 of the Public Acts of 1943  1943 PA

13
      202, or to taxes imposed for the payment of principal and inter-

14
      est on bonds or other evidence of indebtedness or for the payment

15
      of assessments or contract obligations in anticipation of which

16
      bonds are issued that are approved by the voters after December

17
      22, 1978.

18
           (13) If it is determined subsequent to the levy of a tax

19
      that an incorrect millage reduction fraction has been applied,

20
      the amount of additional tax revenue or the shortage of tax reve-

21
      nue shall be deducted from or added to the next regular tax levy

22
      for that unit of local government after the determination of the

23
      authorized rate pursuant to this section.

24
           (14) If as a result of an appeal of county equalization or

25
      state equalization the taxable value of a unit of local govern-

26
      ment changes, the millage reduction fraction for the year shall

27
      be recalculated.  The financial officer shall effectuate an



   H05309'99 **
                                  59

 1
      addition or reduction of tax revenue in the same manner as

 2
      prescribed in subsection (13).

 3
           (15) The fractions calculated pursuant to this section shall

 4
      be rounded to 4 decimal places, except that the inflation rate

 5
      shall be computed by the state tax commission and shall be

 6
      rounded to 3 decimal places.  The state tax commission shall pub-

 7
      lish the inflation rate before March 1 of each year.

 8
           (16) Beginning with taxes levied in 1994, the millage reduc-

 9
      tion required by section 31 of article IX of the state constitu-

10
      tion of 1963 shall permanently reduce the maximum rate or rates

11
      authorized by law or charter.  The reduced maximum authorized

12
      rate or rates for 1994 shall equal the product of the maximum

13
      rate or rates authorized by law or charter before application of

14
      this section multiplied by the  compound  COMPOUNDED millage

15
      reduction applicable to that millage in 1994 pursuant to subsec-

16
      tions (8) to (12).  The reduced maximum authorized rate or rates

17
      for 1995 and each year after 1995 shall equal the product of the

18
      immediately preceding year's reduced maximum authorized rate or

19
      rates multiplied by the current year's millage reduction fraction

20
      and shall be adjusted for millage for which authorization has

21
      expired and new authorized millage approved by the voters pursu-

22
      ant to subsections (8) to (12).

23
           Sec. 44. (1) Upon receipt of the tax roll, the township

24
      treasurer or other collector shall proceed to collect the taxes.

25
      The township treasurer or other collector shall mail to each tax-

26
      payer at the taxpayer's last known address on the tax roll or to

27
      the taxpayer's designated agent a statement showing the



   H05309'99 **
                                  60

 1
      description of the property against which the tax is levied, the

 2
      taxable value of the property, and the amount of the tax on the

 3
      property.  If a tax statement is mailed to the taxpayer, a tax

 4
      statement sent to a taxpayer's designated agent may be in a sum-

 5
      mary form or may be in an electronic data processing format.  If

 6
      the tax statement information is provided to both a taxpayer and

 7
      the taxpayer's designated agent, the tax statement mailed to the

 8
      taxpayer may be identified as an informational copy.  FOR QUALI-

 9
      FIED AGRICULTURAL PROPERTY ONLY, THE TAX STATEMENT MAILED TO THE

10
      TAXPAYER OR TO THE TAXPAYER'S DESIGNATED AGENT SHALL INCLUDE THE

11
      RECAPTURE TAX THAT WOULD BE IMPOSED UNDER THE AGRICULTURAL PROP-

12
      ERTY RECAPTURE ACT IF THE QUALIFIED AGRICULTURAL PROPERTY WERE

13
      CONVERTED BY A CHANGE IN USE, AS THAT TERM IS DEFINED IN THE

14
      AGRICULTURAL PROPERTY RECAPTURE ACT. A township treasurer or

15
      other collector electing to send a tax statement to a taxpayer's

16
      designated agent or electing not to include an itemization in the

17
      manner described in subsection (9)(c) in a tax statement mailed

18
      to the taxpayer shall, upon request, mail a detailed copy of the

19
      tax statement, including an itemization of the amount of tax in

20
      the manner described by subsection (9)(c), to the taxpayer with-

21
      out charge, as previously required by this section.

22
           (2) The expense of preparing and mailing the statement shall

23
      be paid from the county, township, city, or village funds.

24
      Failure to send or receive the notice does not prejudice the

25
      right to collect or enforce the payment of the tax.  The township

26
      treasurer shall remain in the office of the township treasurer at

27
      some convenient place in the township on each Friday in the month



   H05309'99 **
                                  61

 1
      of December, from 9 a.m. to 5 p.m. to receive taxes, but shall

 2
      receive taxes upon a weekday when they are offered.  However, if

 3
      a Friday in the month of December is Christmas eve, Christmas

 4
      day, New Year's eve, or a day designated by the township as a

 5
      holiday for township employees, the township treasurer shall not

 6
      be required to remain in the office of the township treasurer on

 7
      that Friday, but shall remain in the office of the township trea-

 8
      surer at some convenient place in the township from 9 a.m. to 5

 9
      p.m. on the day most immediately preceding that Friday that is

10
      not Christmas eve, Christmas day, New Year's eve, or a day desig-

11
      nated by the township as a holiday for township employees, to

12
      receive taxes.

13
           (3) Except as provided by subsection (7), on a sum volun-

14
      tarily paid before February 15 of the succeeding year, the local

15
      property tax collecting unit shall add 1% for a property tax

16
      administration fee.  However, unless otherwise provided for by an

17
      agreement between the assessing unit and the collecting unit, if

18
      a local property tax collecting unit other than a village does

19
      not also serve as the local assessing unit, the excess of the

20
      amount of property tax administration fees over the expense to

21
      the local property tax collecting unit in collecting the taxes,

22
      but not less than 80% of the fee imposed, shall be returned to

23
      the local assessing unit.  A property tax administration fee is

24
      defined as a fee to offset costs incurred by a collecting unit in

25
      assessing property values, collecting the property tax levies,

26
      and in the review and appeal processes.  The costs of any

27
      appeals, in excess of funds available from the property tax



   H05309'99 **
                                  62

 1
      administration fee, may be shared by any taxing unit only if

 2
      approved by the governing body of the taxing unit.  Except as

 3
      provided by subsection (7), on all taxes paid after February 14

 4
      and before March 1 the governing body of a city or township may

 5
      authorize the treasurer to add to the tax a property tax adminis-

 6
      tration fee to the extent imposed on taxes paid before February

 7
      15 and a late penalty charge equal to 3% of the tax.  Interest 

 8
      THE GOVERNING BODY OF A CITY OR TOWNSHIP MAY WAIVE INTEREST from

 9
      February 15 to the last day of February on a summer property tax

10
      that has been deferred under section 51 or any late penalty

11
      charge  may be waived by the governing body of a city or

12
      township  for the homestead property of a senior citizen, para-

13
      plegic, quadriplegic, hemiplegic, eligible serviceperson, eligi-

14
      ble veteran, eligible widow or widower, totally and permanently

15
      disabled person, or blind person, as those persons are defined in

16
      chapter 9 of the income tax act of 1967,  Act No. 281 of the

17
      Public Acts of 1967, being sections 206.501 to 206.532 of the

18
      Michigan Compiled Laws  1967 PA 281, MCL 206.501 TO 206.532, if

19
      the person makes a claim before February 15 for a credit for that

20
      property provided by chapter 9 of  Act No. 281 of the Public Acts

21
      of 1967  THE INCOME TAX ACT OF 1967, 1967 PA 281, MCL 206.501 TO

22
      206.532, if the person presents a copy of the form filed for that

23
      credit to the local treasurer, and if the person has not received

24
      the credit before February 15.  Interest  THE GOVERNING BODY OF

25
      A CITY OR TOWNSHIP MAY WAIVE INTEREST from February 15 to the

26
      last day of February on a summer property tax deferred under

27
      section 51 or any late penalty charge  may be waived by the



   H05309'99 **
                                  63

 1
      governing body of a city or township  for a person's property

 2
      that is subject to a farmland development rights agreement

 3
      recorded with the register of deeds of the county in which the

 4
      property is situated as provided in section 36104 of part 361

 5
       (farmland and open space preservation)  of the natural resources

 6
      and environmental protection act,  Act No. 451 of the Public Acts

 7
      of 1994, being section 324.36104 of the Michigan Compiled Laws 

 8
      1994 PA 451, MCL 324.36104, if the person presents a copy of the

 9
      development rights agreement or verification that the property is

10
      subject to a development rights agreement before February 15.  A

11
      4% county property tax administration fee, a property tax admin-

12
      istration fee to the extent imposed on and if authorized under

13
      subsection (7) for taxes paid before March 1, and interest on the

14
      tax at the rate of 1% per month shall be added to taxes collected

15
      by the township or city treasurer after the last day of February

16
      and before settlement with the county treasurer, and the payment

17
      shall be treated as though collected by the county treasurer.  If

18
      the statements required to be mailed by this section are not

19
      mailed before December 31, the treasurer shall not impose a late

20
      penalty charge  with respect to  ON taxes collected after

21
      February 14.

22
           (4) The governing body of a local property tax collecting

23
      unit may waive all or part of the property tax administration fee

24
      or the late penalty charge, or both.  A property tax administra-

25
      tion fee collected by the township treasurer shall be used only

26
      for the purposes for which it may collected as specified by

27
      subsection (3) and this subsection.  If the bond of the



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 1
      treasurer, as provided in section 43, is furnished by a surety

 2
      company, the cost of the bond may be paid by the township from

 3
      the property tax administration fee.

 4
           (5) If apprehensive of the loss of personal tax assessed

 5
      upon the roll, the township treasurer may enforce collection of

 6
      the tax at any time, and if compelled to seize property or bring

 7
      an action in December may add, if authorized under

 8
      subsection (7), 1% for a property tax administration fee and 3%

 9
      for a late penalty charge.

10
           (6) Along with taxes returned delinquent to a county trea-

11
      surer under section 55, the amount of the 1% property tax admin-

12
      istration fee prescribed by subsection (3) that is imposed and

13
      not paid shall be included in the return of delinquent taxes and,

14
      when delinquent taxes are distributed by the county treasurer

15
      under this act, the delinquent 1% property tax administration fee

16
      shall be distributed to the treasurer of the local unit who

17
      transmitted the statement of taxes returned as delinquent.

18
      Interest imposed upon delinquent property taxes under this act

19
      shall also be imposed upon the 1% property tax administration fee

20
      and, for purposes of this act other than to which local unit the

21
      county treasurer shall distribute a delinquent 1% property tax

22
      administration fee, any reference to delinquent taxes shall be

23
      considered to include the 1% property tax administration fee

24
      returned as delinquent for the same property.

25
           (7) The local property tax collecting treasurer shall not

26
      impose a property tax administration fee, collection fee, or any

27
      type of late penalty charge authorized by law or charter unless



   H05309'99 **
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 1
      the governing body of the local property tax collecting unit

 2
      approves, by resolution or ordinance adopted after

 3
      December 31, 1982, an authorization for the imposition of a prop-

 4
      erty tax administration fee, collection fee, or any type of late

 5
      penalty charge provided for by this section or by charter, which

 6
      authorization shall be valid for all levies that become a lien

 7
      after the resolution or ordinance is adopted.  However, unless

 8
      otherwise provided for by an agreement between the assessing unit

 9
      and the collecting unit, a local property tax collecting unit

10
      that does not also serve as the assessing unit shall impose a

11
      property tax administration fee on each parcel at a rate equal to

12
      the rate of the fee imposed for city or township taxes on that

13
      parcel.

14
           (8) The annual statement required by  Act No. 125 of the

15
      Public Acts of 1966, being sections 565.161 to 565.164 of the

16
      Michigan Compiled Laws  1966 PA 125, MCL 565.161 TO 565.164, or a

17
      monthly billing form or mortgagor passbook provided instead of

18
      that annual statement shall include a statement to the effect

19
      that a taxpayer who  has  WAS not  been  mailed the tax
   statement

20
      or a copy of the tax statement by the township treasurer or other

21
      collector shall receive, upon request and without charge, a copy

22
      of the tax statement from the township treasurer or other collec-

23
      tor or, if the tax statement has been mailed to the taxpayer's

24
      designated agent, from either the taxpayer's designated agent or

25
      the township treasurer or other collector.  A designated agent

26
      who is subject to  Act No. 125 of the Public Acts of 1966  1966

27
      PA 125, MCL 565.161 TO 565.164, and who has been mailed the tax



   H05309'99 **
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 1
      statement for taxes that became a lien in the calendar year

 2
      immediately preceding the year in which the annual statement may

 3
      be required to be furnished shall mail, upon  the  request  of
   

 4
      and without charge to a taxpayer who  has  WAS not  been 
   mailed

 5
      that tax statement or a copy of that tax statement, a copy of

 6
      that tax statement.  to that taxpayer. 

 7
           (9) As used in this section:

 8
           (a) "Designated agent" means an individual, partnership,

 9
      association, corporation, receiver, estate, trust, or other legal

10
      entity that has entered into an escrow account agreement or other

11
      agreement with the taxpayer that obligates that individual or

12
      legal entity to pay the property taxes for the taxpayer or, if an

13
      agreement has not been entered into, that  has been  WAS desig-

14
      nated by the taxpayer on a form made available to the taxpayer by

15
      the township treasurer and filed with that treasurer.  The desig-

16
      nation by the taxpayer shall remain in effect until revoked by

17
      the taxpayer in a writing filed with the township treasurer.  The

18
      form made available by the township treasurer shall include a

19
      statement that submission of the form allows the treasurer to

20
      mail the tax statement to the designated agent instead of to the

21
      taxpayer and a statement notifying the taxpayer of his or her

22
      right to revoke the designation by a writing filed with the town-

23
      ship treasurer.

24
           (b) "Taxpayer" means the owner of the property  upon  ON

25
      which the tax is imposed.

26
           (c) When describing in subsection (1) that the amount of tax

27
      on the property must be shown in the tax statement, "amount of



   H05309'99 **
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 1
      tax" means an itemization by dollar amount of each of the several

 2
      ad valorem property taxes and special assessments that a person

 3
      may pay under section 53 and an itemization by millage rate, on

 4
      either the tax statement or a separate form accompanying the tax

 5
      statement, of each of the several ad valorem property taxes that

 6
      a person may pay under section 53.  The township treasurer or

 7
      other collector may replace the itemization described in this

 8
      subdivision with a statement informing the taxpayer that the

 9
      itemization of the dollar amount and millage rate of the taxes is

10
      available without charge from the local property tax collecting

11
      unit.

12
           Enacting section 1. Section 7a of the general property tax

13
      act, 1893 PA 206, MCL 211.7a, is repealed.

14
           Enacting section 2.  This amendatory act does not take

15
      effect unless all of the following occur:

16
           (a) House Bill No. 5780  (request no. H05514'99 ****) of the

17
      90th Legislature is enacted into law.

18
           (b) Senate Bill No. 1246 or House Bill No. _____ (request

19
      no. 05515'99 *) of the 90th Legislature is enacted into law.

20
           (c) House Joint Resolution R  (request no. 06602'00 *) of

21
      the 90th Legislature becomes a part of the state constitution of

22
      1963 as provided in section 1 of article XII of the state consti-

23
      tution of 1963.











   H05309'99 **          Final page.                        FDD