SENATE BILL No. 1250

May 9, 2000, Introduced by Senator SCHWARZ and referred to the Committee on Finance.

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending section 7o (MCL 211.7o), as amended by 1998 PA 536.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 7o. (1) Property REAL OR PERSONAL PROPERTY owned and

2 occupied by a nonprofit charitable institution while occupied by

3 that nonprofit charitable institution solely for the purposes for

4 which it was incorporated is exempt from the collection of taxes

5 under this act.

6 (2) Property REAL OR PERSONAL PROPERTY owned and occupied

7 by a charitable trust while occupied by that charitable trust

8 solely for the charitable purposes for which that charitable

9 trust was established is exempt from the collection of taxes

10 under this act.

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1 (3) Property REAL OR PERSONAL PROPERTY owned by a

2 nonprofit charitable institution or charitable trust that is

3 leased, loaned, or otherwise made available to another nonprofit

4 charitable institution or charitable trust or to a nonprofit hos-

5 pital or a nonprofit educational institution that is occupied by

6 that nonprofit charitable institution, charitable trust, non-

7 profit hospital, or nonprofit educational institution solely for

8 the purposes for which that nonprofit charitable institution,

9 charitable trust, nonprofit hospital, or nonprofit educational

10 institution was organized or established and that would be exempt

11 from taxes collected under this act if the REAL OR PERSONAL prop-

12 erty were occupied by the lessor nonprofit charitable institution

13 or charitable trust solely for the purposes for which the lessor

14 charitable nonprofit institution was organized or the charitable

15 trust was established is exempt from the collection of taxes

16 under this act.

17 (4) REAL OR PERSONAL PROPERTY OWNED BY A NONPROFIT CHARITA-

18 BLE INSTITUTION OR CHARITABLE TRUST THAT IS LEASED, LOANED, OR

19 OTHERWISE MADE AVAILABLE TO A POLITICAL SUBDIVISION OF THIS STATE

20 OR TO AN AUTHORITY, INSTRUMENTALITY, OR AGENCY CREATED BY A

21 POLITICAL SUBDIVISION OF THIS STATE IS EXEMPT FROM THE COLLECTION

22 OF TAXES UNDER THIS ACT IF ALL OF THE FOLLOWING CONDITIONS ARE

23 SATISFIED:

24 (A) THE REAL OR PERSONAL PROPERTY WOULD BE EXEMPT FROM THE

25 COLLECTION OF TAXES UNDER THIS ACT UNDER SECTION 7M IF THE REAL

26 OR PERSONAL PROPERTY WERE OWNED OR WERE BEING ACQUIRED PURSUANT

27 TO AN INSTALLMENT PURCHASE AGREEMENT BY THE LESSEE POLITICAL

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1 SUBDIVISION OF THIS STATE OR AUTHORITY, INSTRUMENTALITY, OR

2 AGENCY CREATED BY A POLITICAL SUBDIVISION OF THIS STATE.

3 (B) THE REAL OR PERSONAL PROPERTY WOULD BE EXEMPT FROM THE

4 COLLECTION OF TAXES UNDER THIS ACT IF OCCUPIED BY THE LESSOR NON-

5 PROFIT CHARITABLE INSTITUTION OR CHARITABLE TRUST SOLELY FOR THE

6 PURPOSES FOR WHICH THE LESSOR CHARITABLE NONPROFIT INSTITUTION

7 WAS ORGANIZED OR THE CHARITABLE TRUST WAS ESTABLISHED.

8 (5) (4) A charitable home of a fraternal or secret soci-

9 ety, or a nonprofit corporation whose stock is wholly owned by a

10 religious or fraternal society that owns and operates facilities

11 for the aged and chronically ill and in which the net income from

12 the operation of the corporation does not inure to the benefit of

13 any person other than the residents, is exempt from the collec-

14 tion of taxes under this act.

15 (6) (5) As used in this section, "charitable trust" means

16 a charitable trust registered under the supervision of trustees

17 for charitable purposes act, 1961 PA 101, MCL 14.251 to 14.266.

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