House Introduced Bill 6344

HOUSE BILL No. 6344

September 18, 2002, Introduced by Reps. Tabor, DeRossett, Julian and Hummel and referred to the Committee on Commerce.

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending sections 2a and 34c (MCL 211.2a and 211.34c), section

2a as amended by 1982 PA 539 and section 34c as amended by 2000

PA 415.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1
Sec. 2a. (1) For BEFORE JANUARY 1, 2003, FOR purposes of

2
section 2, a mobile home which THAT is not covered by SUBJECT

3
TO THE SPECIFIC TAX LEVIED UNDER section 41 of Act No. 243 of

4
the Public Acts of 1959, being section 125.1041 of the Michigan

5
Compiled Laws, and while 1959 PA 243, MCL 125.1041, located on

6
land otherwise assessable as real property under this act,

7
and NOT EXEMPT FROM THE COLLECTION OF TAXES UNDER THIS ACT,

8
whether or not permanently affixed to the soil, shall be THAT

9
REAL PROPERTY, IS considered real property and shall be assessed

07788'02 FDD 2

1
as part of the real property upon ON which the mobile home is

2
located.

3
(2) AFTER DECEMBER 31, 2002, FOR PURPOSES OF SECTION 2, A

4
MOBILE HOME THAT IS NOT SUBJECT TO THE SPECIFIC TAX LEVIED UNDER

5
SECTION 41 OF 1959 PA 243, MCL 125.1041, LOCATED ON REAL PROPERTY

6
NOT EXEMPT FROM THE COLLECTION OF TAXES UNDER THIS ACT, WHETHER

7
OR NOT PERMANENTLY AFFIXED TO THAT REAL PROPERTY, IS CONSIDERED

8
REAL PROPERTY AND IS SUBJECT TO ASSESSMENT AND THE COLLECTION OF

9
TAXES UNDER THIS ACT. A MOBILE HOME SHALL BE ASSESSED AS PART OF

10
THE REAL PROPERTY ON WHICH THE MOBILE HOME IS LOCATED IF THE

11
OWNER OF THE MOBILE HOME IS THE OWNER OF THE FEE TITLE TO THE

12
REAL PROPERTY ON WHICH THE MOBILE HOME IS LOCATED. A MOBILE HOME

13
SHALL BE ASSESSED TO THE OWNER OF THE MOBILE HOME SEPARATELY FROM

14
THE REAL PROPERTY ON WHICH THE MOBILE HOME IS LOCATED IF THE

15
OWNER OF THE MOBILE HOME IS NOT THE OWNER OF THE FEE TITLE TO THE

16
REAL PROPERTY ON WHICH THE MOBILE HOME IS LOCATED. FOR TAXES

17
LEVIED AFTER DECEMBER 31, 2002 AND BEFORE JANUARY 1, 2003, A

18
MOBILE HOME'S TAXABLE VALUE IS 50% OF THAT MOBILE HOME'S TRUE

19
CASH VALUE. FOR TAXES LEVIED AFTER DECEMBER 31, 2003, A MOBILE

20
HOME'S TAXABLE VALUE IS THAT VALUE DETERMINED UNDER SECTION 27A.

21
FOR TAXES LEVIED AFTER DECEMBER 31, 2002, AN OWNER OF A MOBILE

22
HOME, WHETHER OR NOT PERMANENTLY AFFIXED TO REAL PROPERTY, MAY

23
CLAIM A HOMESTEAD EXEMPTION AS PROVIDED IN SECTION 7CC.

24
(3) (2) As used in this section, "mobile home" does not

25
include a travel trailer or camping trailer which THAT is

26
either parked in a campground licensed by this state for not more

27
than 180 days in any calendar year, or parked upon ON private

07788'02 3

1
property, including a designated storage area of a licensed

2
campground, for the sole purpose of storage.

3
(4) (3) As used in this section, "mobile home" does not

4
include a truck camper which is parked in a campground licensed

5
by this state which THAT is a portable structure, designed and

6
constructed to be loaded onto , or affixed to , the bed or

7
chassis of a truck, and which THAT is used to provide temporary

8
living quarters for recreational camping or travel.

9
(5) (4) For purposes of AS USED IN this section: , the

10
following definitions shall apply:

11
(a) A travel trailer is "TRAVEL TRAILER" MEANS a vehicular

12
portable structure mounted on wheels and of THAT IS a size and

13
weight as THAT DOES not to require special highway movement

14
permits when IF drawn by a stock passenger automobile or when

15
IF drawn with a fifth wheel hitch mounted on a motor vehicle, and

16
THAT is primarily designed, constructed, and used to provide tem-

17
porary living quarters for recreational camping or travel.

18
(b) A camping trailer is "CAMPING TRAILER" MEANS a vehicu-

19
lar portable temporary living quarters used for recreational

20
camping or travel and of THAT IS a size and weight as THAT

21
DOES not to require special highway movement permits when IF

22
drawn by a motor vehicle.

23
Sec. 34c. (1) Not later than the first Monday in March in

24
each year, the assessor shall classify every item of assessable

25
property according to the definitions contained in this section.

26
Following the March board of review, the assessor shall tabulate

27
the total number of items and the valuations as approved by the

07788'02 4

1
board of review for each classification and for the totals of

2
real and personal property in the local tax collecting unit. The

3
assessor shall transmit to the county equalization department and

4
to the state tax commission the tabulation of assessed valuations

5
and other statistical information the state tax commission con-

6
siders necessary to meet the requirements of this act and 1911 PA

7
44, MCL 209.1 to 209.8.

8
(2) The classifications of assessable real property are

9
described as follows:

10
(a) Agricultural real property includes parcels used par-

11
tially or wholly for agricultural operations, with or without

12
buildings, and parcels assessed to the department of natural

13
resources and valued by the state tax commission. As used in

14
this subdivision, "agricultural operations" means the following:

15
(i) Farming in all its branches, including cultivating

16
soil.

17
(ii) Growing and harvesting any agricultural, horticultural,

18
or floricultural commodity.

19
(iii) Dairying.

20
(iv) Raising livestock, bees, fish, fur-bearing animals, or

21
poultry.

22
(v) Turf and tree farming.

23
(vi) Performing any practices on a farm incident to, or in

24
conjunction with, farming operations. A commercial storage, pro-

25
cessing, distribution, marketing, or shipping operation is not

26
part of agricultural operations.

07788'02 5

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
(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
(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.

07788'02 6

1
(ii) A MOBILE HOME NOT SUBJECT TO THE SPECIFIC TAX LEVIED

2
UNDER SECTION 41 OF 1959 PA 243, MCL 125.1041, ON A PLATTED OR

3
UNPLATTED PARCEL, WHICH IS USED FOR, OR PROBABLY WILL BE USED

4
FOR, RESIDENTIAL PURPOSES.

5
(iii) FOR TAXES LEVIED AFTER DECEMBER 31, 2002, A MOBILE

6
HOME LOCATED IN A MOBILE HOME PARK FOR WHICH AN INITIAL LICENSE

7
TO OPERATE WAS ISSUED UNDER SECTION 16 OF THE MOBILE HOME COMMIS-

8
SION ACT, 1987 PA 96, MCL 125.2316, AFTER DECEMBER 31, 2002. AS

9
USED IN THIS SUBPARAGRAPH, "MOBILE HOME PARK" MEANS THAT TERM AS

10
DEFINED IN SECTION 2 OF THE MOBILE HOME COMMISSION ACT, 1987 PA

11
96, MCL 125.2302.

12
(iv) (ii) Parcels that are used for, or probably will be

13
used for, recreational purposes, such as lake lots and hunting

14
lands, located in an area used predominantly for recreational

15
purposes.

16
(f) Timber-cutover real property includes parcels that are

17
stocked with forest products of merchantable type and size, cut-

18
over forest land with little or no merchantable products, and

19
marsh lands or other barren land. However, when a typical pur-

20
chase of this type of land is for residential or recreational

21
uses, the classification shall be changed to residential.

22
(3) The classifications of assessable personal property are

23
described as follows:

24
(a) Agricultural personal property includes farm buildings

25
on leased land and any agricultural equipment and produce not

26
exempt by law.

07788'02 7

1
(b) Commercial personal property includes the following:

2
(i) All equipment, furniture, and fixtures on commercial

3
parcels, and inventories not exempt by law.

4
(ii) Outdoor advertising signs and billboards.

5
(iii) Well drilling rigs and other equipment attached to a

6
transporting vehicle but not designed for operation while the

7
vehicle is moving on the highway.

8
(iv) Unlicensed commercial vehicles or commercial vehicles

9
licensed as special mobile equipment or by temporary permits.

10
(v) Commercial buildings on leased land.

11
(c) Industrial personal property includes the following:

12
(i) All machinery and equipment, furniture and fixtures, and

13
dies on industrial parcels, and inventories not exempt by law.

14
(ii) Industrial buildings on leased land.

15
(iii) Personal property of mining companies valued by the

16
state geologist.

17
(d) Residential personal property includes a home, cottage,

18
or cabin on leased land, and a mobile home that would be asses-

19
sable as real property under section 2a except that the land

20
REAL PROPERTY on which it is located is not assessable because

21
the land is exempt FROM THE COLLECTION OF TAXES UNDER THIS ACT.

22
(e) Utility personal property includes the following:

23
(i) Electric transmission and distribution systems, substa-

24
tion equipment, spare parts, gas distribution systems, and water

25
transmission and distribution systems.

26
(ii) Oil wells and allied equipment such as tanks, gathering

27
lines, field pump units, and buildings.

07788'02 8

1
(iii) Inventories not exempt by law.

2
(iv) Gas wells with allied equipment and gathering lines.

3
(v) Oil or gas field equipment stored in the open or in

4
warehouses such as drilling rigs, motors, pipes, and parts.

5
(vi) Gas storage equipment.

6
(vii) Transmission lines of gas or oil transporting

7
companies.

8
(viii) Utility buildings on leased land.

9
(4) For taxes levied before January 1, 2003, buildings on

10
leased land of any classification are improvements where the

11
owner of the improvement is not the owner of the land or fee, the

12
value of the land is not assessed to the owner of the building,

13
and the improvement has been assessed as personal property pursu-

14
ant to section 14(6). For taxes levied after December 31, 2002,

15
buildings located upon leased land, except buildings exempt under

16
section 9f, shall be assessed as real property under section 2

17
and shall bear the same classification as the parcel upon which

18
the building is located. For taxes levied after December 31,

19
2001, buildings exempt under section 9f shall be assessed as per-

20
sonal property.

21
(5) If the total usage of a parcel includes more than 1

22
classification, the assessor shall determine the classification

23
that most significantly influences the total valuation of the

24
parcel.

25
(6) An owner of any assessable property who disputes the

26
classification of that parcel shall notify the assessor and may

27
protest the assigned classification to the March board of

07788'02 9

1
review. An owner or assessor may appeal the decision of the

2
March board of review by filing a petition with the state tax

3
commission not later than June 30 in that tax year. The state

4
tax commission shall arbitrate the petition based on the written

5
petition and the written recommendations of the assessor and the

6
state tax commission staff. An appeal may not be taken from the

7
decision of the state tax commission regarding classification

8
complaint petitions and the state tax commission's determination

9
is final and binding for the year of the petition.

10
(7) The department of treasury may appeal the classification

11
of any assessable property to the residential and small claims

12
division of the Michigan tax tribunal not later than December 31

13
in the tax year for which the classification is appealed.

14
(8) This section shall not be construed to encourage the

15
assessment of property at other than the uniform percentage of

16
true cash value prescribed by this act.

17
Enacting section 1. This amendatory act does not take

18
effect unless Senate Bill No. _____ or House Bill No. 6345

19
(request no. 07788'02 a) of the 91st Legislature is enacted into

20
law.

07788'02 Final page. FDD