HB-6036, As Passed Senate, December 8, 2004                                 

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 6036

                                                                             A bill to amend 1893 PA 206, entitled                                             

"The general property tax act,"                                             

by amending section 7o (MCL 211.7o), as amended by 2000 PA 309.             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 7o.  (1) Real or personal property owned and occupied                  

2   by a nonprofit charitable institution while occupied by that                

3   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) Real or personal property owned and occupied by a                       

7   charitable trust while occupied by that charitable trust solely             

8   for the charitable purposes for which that charitable trust was             

9   established is exempt from the collection of taxes under this               

10  act.                                                                        

11      (3) Real or personal property owned by a nonprofit charitable               

1   institution or charitable trust that is leased, loaned, or                  

2   otherwise made available to another nonprofit charitable                    

3   institution or charitable trust or to a nonprofit hospital or a             

4   nonprofit educational institution that is occupied by that                  

5   nonprofit charitable institution, charitable trust, nonprofit               

6   hospital, or nonprofit educational institution solely for the               

7   purposes for which that nonprofit charitable institution,                   

8   charitable trust, nonprofit hospital, or nonprofit educational              

9   institution was organized or established and that would be exempt           

10  from taxes collected under this act if the real or personal                 

11  property were occupied by the lessor nonprofit charitable                   

12  institution or charitable trust solely for the purposes for which           

13  the lessor charitable nonprofit institution was organized or the            

14  charitable trust was established is exempt from the collection of           

15  taxes under this act.                                                       

16      (4) For taxes levied after December 31, 1997, real or                       

17  personal property owned by a nonprofit charitable institution or            

18  charitable trust that is leased, loaned, or otherwise made                  

19  available to a governmental entity is exempt from the collection            

20  of taxes under this act if all of the following conditions are              

21  satisfied:                                                                  

22      (a) The real or personal property would be exempt from the                  

23  collection of taxes under this act under section 7m if the real             

24  or personal property were owned or were being acquired pursuant             

25  to an installment purchase agreement by the lessee governmental             

26  entity.                                                                     

27      (b) The real or personal property would be exempt from the                  

1   collection of taxes under this act if occupied by the lessor                

2   nonprofit charitable institution or charitable trust solely for             

3   the purposes for which the lessor charitable nonprofit                      

4   institution was organized or the charitable trust was                       

5   established.                                                                

6   (5) Real property owned by a qualified conservation                         

7   organization that is held for conservation purposes and that is             

8   open to all residents of this state for educational or                      

9   recreational use, including, but not limited to, low-impact,                

10  nondestructive activities such as hiking, bird watching,                    

11  cross-country skiing, or snowshoeing is exempt from the                     

12  collection of taxes under this act.  As used in this subsection,            

13  "qualified conservation organization" means a nonprofit                     

14  charitable institution or a charitable trust that meets all of              

15  the following conditions:                                                   

16      (a) Is organized or established, as reflected in its articles               

17  of incorporation or trust documents, for the purpose of                     

18  acquiring, maintaining, and protecting nature sanctuaries, nature           

19  preserves, and natural areas in this state, that predominantly              

20  contain natural habitat for fish, wildlife, and plants.                     

21      (b) Is required under its articles of incorporation, bylaws,                

22  or trust documents to hold in perpetuity property acquired for              

23  the purposes described in subdivision (a) unless both of the                

24  following conditions are satisfied:                                         

25                                                                               (i) That property is no longer suitable for the purposes                            

26  described in subdivision (a).                                               

27      (ii) The sale of the property is approved by a majority vote                 

1   of the members or trustees.                                                 

2   (c) Its articles of incorporation, bylaws, or trust documents               

3   prohibit any officer, shareholder, board member, employee, or               

4   trustee or the family member of an officer, shareholder, board              

5   member, employee, or trustee from benefiting from the sale of               

6   property acquired for the purposes described in subdivision (a).

7   (6)  (5)  If authorized by a resolution of the local tax                    

8   collecting unit in which the real or personal property is                   

9   located, real or personal property owned by a nonprofit                     

10  charitable institution that is occupied and used by the nonprofit           

11  charitable institution's chief executive officer as his or her              

12  principal residence as a condition of his or her employment and             

13  that is contiguous to real property that contains the nonprofit             

14  charitable institution's principal place of business is exempt              

15  from the collection of taxes under this act.                                

16  (7)  (6)  A charitable home of a fraternal or secret society,               

17  or a nonprofit corporation whose stock is wholly owned by a                 

18  religious or fraternal society that owns and operates facilities            

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

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

21  any person other than the residents, is exempt from the                     

22  collection of taxes under this act.                                         

23  (8)  (7)  As used in this section:                                          

24      (a) "Charitable trust" means a charitable trust registered                  

25  under the supervision of trustees for charitable purposes act,              

26  1961 PA 101, MCL 14.251 to 14.266.                                          

27      (b) "Governmental entity" means 1 or more of the following:                 

1                                                                                (i) The federal government or an agency, department,                                

2   division, bureau, board, commission, council, or authority of the           

3   federal government.                                                         

4       (ii) This state or an agency, department, division, bureau,                  

5   board, commission, council, or authority of this state.                     

6       (iii) A county, city, township, village, local or                            

7   intermediate school district, or municipal corporation.                     

8       (iv) A public educational institution, including, but not                    

9   limited to, a local or intermediate school district, a public               

10  school academy, a community college or junior college established           

11  pursuant to section 7 of article VIII of the state constitution             

12  of 1963, or a state 4-year institution of higher education                  

13  located in this state.                                                      

14      (v) Any other authority or public body created under state                  

15  law.                                                                        

16      (c) "Public school academy" means a public school academy                   

17  organized under the revised school code, 1976 PA 451, MCL 380.1             

18  to 380.1852.