HB-4536, As Passed Senate, December 14, 2006

 

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 4536

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 34c (MCL 211.34c), as amended by 2006 PA 376.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

year, the assessor shall classify every item of assessable property

 

according to the definitions contained in this section. Following

 

the March board of review, the assessor shall tabulate the total

 

number of items and the valuations as approved by the board of

 

review for each classification and for the totals of real and

 

personal property in the local tax collecting unit. The assessor

 

shall transmit to the county equalization department and to the

 

state tax commission the tabulation of assessed valuations and

 


other statistical information the state tax commission considers

 

necessary to meet the requirements of this act and 1911 PA 44, MCL

 

209.1 to 209.8.

 

     (2) The classifications of assessable real property are

 

described as follows:

 

     (a) Agricultural real property includes parcels used partially

 

or wholly for agricultural operations, with or without buildings.  

 

, and parcels assessed to the department of natural resources and

 

valued by the state tax commission.  For taxes levied after

 

December 31, 2002, agricultural real property includes buildings on

 

leased land used for agricultural operations. As used in this

 

subdivision, "agricultural operations" means the following:

 

     (i) Farming in all its branches, including cultivating soil.

 

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

 

floricultural commodity.

 

     (iii) Dairying.

 

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

 

poultry, including operating a game bird hunting preserve licensed

 

under part 417 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.41701 to 324.41712, and also

 

including farming operations that harvest cervidae on site where

 

not less than 60% of the cervidae were born as part of the farming

 

operation. As used in this subparagraph, "livestock" includes, but

 

is not limited to, cattle, sheep, new world camelids, goats, bison,

 

privately owned cervids, ratites, swine, equine, poultry,

 

aquaculture, and rabbits. Livestock does not include dogs and cats.

 

     (v) Raising, breeding, training, leasing, or boarding horses.

 


     (vi) Turf and tree farming.

 

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

 

conjunction with, farming operations. A commercial storage,

 

processing, distribution, marketing, or shipping operation is not

 

part of agricultural operations.

 

     (b) Commercial real property includes the following:

 

     (i) Platted or unplatted parcels used for commercial purposes,

 

whether wholesale, retail, or service, with or without buildings.

 

     (ii) Parcels used by fraternal societies.

 

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

 

apartment buildings with more than 4 units.

 

     (iv) For taxes levied after December 31, 2002, buildings on

 

leased land used for commercial purposes.

 

     (c) Developmental real property includes parcels containing

 

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

 

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

 

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

 

population center, or farm land subject to several competing

 

valuation influences.

 

     (d) Industrial real property includes the following:

 

     (i) Platted or unplatted parcels used for manufacturing and

 

processing purposes, with or without buildings.

 

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

 

pumping stations, switches, substations, compressing stations,

 

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

 

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

 

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

 


state geologist.

 

     (iv) For taxes levied after December 31, 2002, buildings on

 

leased land used for industrial purposes.

 

     (v) For taxes levied after December 31, 2002, buildings on

 

leased land for utility purposes.

 

     (e) Residential real property includes the following:

 

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

 

and condominium apartments located within or outside a village or

 

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

 

purposes.

 

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

 

recreational purposes, such as lake lots and hunting lands, located

 

in an area used predominantly for recreational purposes.

 

     (iii) For taxes levied after December 31, 2002, a home, cottage,

 

or cabin on leased land, and a mobile home that would be assessable

 

as real property under section 2a except that the land on which it

 

is located is not assessable because the land is exempt.

 

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

 

stocked with forest products of merchantable type and size, cutover

 

forest land with little or no merchantable products, and marsh

 

lands or other barren land. However, when a typical purchase of

 

this type of land is for residential or recreational uses, the

 

classification shall be changed to residential.

 

     (3) The classifications of assessable personal property are

 

described as follows:

 

     (a) Agricultural personal property includes any agricultural

 

equipment and produce not exempt by law.

 


     (b) Commercial personal property includes the following:

 

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

 

parcels, and inventories not exempt by law.

 

     (ii) All outdoor advertising signs and billboards.

 

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

 

transporting vehicle but not designed for operation while the

 

vehicle is moving on the highway.

 

     (iv) Unlicensed commercial vehicles or commercial vehicles

 

licensed as special mobile equipment or by temporary permits.

 

     (c) Industrial personal property includes the following:

 

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

 

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

 

     (ii) Personal property of mining companies valued by the state

 

geologist.

 

     (d) For taxes levied before January 1, 2003, residential

 

personal property includes a home, cottage, or cabin on leased

 

land, and a mobile home that would be assessable as real property

 

under section 2a except that the land on which it is located is not

 

assessable because the land is exempt.

 

     (e) Utility personal property includes the following:

 

     (i) Electric transmission and distribution systems, substation

 

equipment, spare parts, gas distribution systems, and water

 

transmission and distribution systems.

 

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

 

lines, field pump units, and buildings.

 

     (iii) Inventories not exempt by law.

 

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

 


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

 

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

 

     (vi) Gas storage equipment.

 

     (vii) Transmission lines of gas or oil transporting companies.

 

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

 

leased land of any classification are improvements where the owner

 

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

 

of the land is not assessed to the owner of the building, and the

 

improvement has been assessed as personal property pursuant to

 

section 14(6).

 

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

 

classification, the assessor shall determine the classification

 

that most significantly influences the total valuation of the

 

parcel.

 

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

 

classification of that parcel shall notify the assessor and may

 

protest the assigned classification to the March board of review.

 

An owner or assessor may appeal the decision of the March board of

 

review by filing a petition with the state tax commission not later

 

than June 30 in that tax year. The state tax commission shall

 

arbitrate the petition based on the written petition and the

 

written recommendations of the assessor and the state tax

 

commission staff. An appeal may not be taken from the decision of

 

the state tax commission regarding classification complaint

 

petitions and the state tax commission's determination is final and

 

binding for the year of the petition.

 

     (7) The department of treasury may appeal the classification

 


of any assessable property to the residential and small claims

 

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

 

the tax year for which the classification is appealed.

 

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

 

assessment of property at other than the uniform percentage of true

 

cash value prescribed by this act.

 

     (9) The assessor of each city or township in which is located

 

property that is subject to payment in lieu of taxes under subpart

 

14 of part 21 of the natural resources and environmental protection

 

act, 1994 PA 451, MCL 324.2152 to 324.2154, shall place that

 

property on an assessment roll that is separate from the assessment

 

roll prepared under section 24. For purposes of calculating the

 

debt limitation imposed by section 11 of article VII of the state

 

constitution of 1963, the separate assessment roll for property

 

that is subject to payment in lieu of taxes under subpart 14 of

 

part 21 of the natural resources and environmental protection act,

 

1994 PA 451, MCL 324.2152 to 324.2154, required by this subsection

 

shall be combined with the assessment roll prepared under section

 

24.

 

     Enacting section 1. It is the intent of the legislature that

 

this amendatory act shall not change the status of property subject

 

to payment in lieu of taxes under subpart 14 of part 21 of the

 

natural resources and environmental protection act, 1994 PA 451,

 

MCL 324.2152 to 324.2154, in regard to school operating mills

 

levied under section 1211 of the revised school code, 1976 PA 451,

 

MCL 380.1211.