June 20, 2006, Introduced by Rep. Green and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 7o (MCL 211.7o), as amended by 2004 PA 576.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7o. (1) Real or personal property owned and occupied by a
nonprofit charitable institution while occupied by that nonprofit
charitable institution solely for the purposes for which it was
incorporated is exempt from the collection of taxes under this act.
(2) Real or personal property owned and occupied by a
charitable trust while occupied by that charitable trust solely for
the charitable purposes for which that charitable trust was
established is exempt from the collection of taxes under this act.
(3) Real or personal property of a resale thrift shop
registered as a nonprofit corporation that is owned and operated by
a nonpublic school for the charitable purpose of benefiting the
students enrolled in that nonpublic school is exempt from the
collection of taxes under this act. As used in this subsection,
"nonpublic school" means that term as defined in section 5 of the
revised school code, 1976 PA 451, MCL 380.5.
(4) (3)
Real or personal property owned by a nonprofit
charitable institution or charitable trust that is leased, loaned,
or otherwise made available to another nonprofit charitable
institution or charitable trust or to a nonprofit hospital or a
nonprofit educational institution that is occupied by that
nonprofit charitable institution, charitable trust, nonprofit
hospital, or nonprofit educational institution solely for the
purposes for which that nonprofit charitable institution,
charitable trust, nonprofit hospital, or nonprofit educational
institution was organized or established and that would be exempt
from taxes collected under this act if the real or personal
property were occupied by the lessor nonprofit charitable
institution or charitable trust solely for the purposes for which
the lessor charitable nonprofit institution was organized or the
charitable trust was established is exempt from the collection of
taxes under this act.
(5) Real or personal property owned by a nonprofit charitable
institution or charitable trust that is leased, loaned, or
otherwise made available to a resale thrift shop that is registered
as a nonprofit corporation and is owned and operated by a nonpublic
school for the purpose of benefiting the students enrolled in that
nonpublic school, that is occupied or utilized by that resale
thrift shop solely for the purposes for which that resale thrift
shop was organized or established, and that would be exempt from
taxes collected under act if the real or personal property were
occupied or utilized by the lessor nonprofit charitable institution
or charitable trust solely for the purposes for which the lessor
charitable nonprofit institution was organized or the charitable
trust was established is exempt from the collection of taxes under
this act.
(6) (4)
For taxes levied after December 31, 1997, real or
personal property owned by a nonprofit charitable institution or
charitable trust that is leased, loaned, or otherwise made
available to a governmental entity is exempt from the collection of
taxes under this act if all of the following conditions are
satisfied:
(a) The real or personal property would be exempt from the
collection of taxes under this act under section 7m if the real or
personal property were owned or were being acquired pursuant to an
installment purchase agreement by the lessee governmental entity.
(b) The real or personal property would be exempt from the
collection of taxes under this act if occupied by the lessor
nonprofit charitable institution or charitable trust solely for the
purposes for which the lessor charitable nonprofit institution was
organized or the charitable trust was established.
(7) (5)
Real property owned by a qualified conservation
organization that is held for conservation purposes and that is
open to all residents of this state for educational or recreational
use, including, but not limited to, low-impact, nondestructive
activities such as hiking, bird watching, cross-country skiing, or
snowshoeing is exempt from the collection of taxes under this act.
As used in this subsection, "qualified conservation organization"
means a nonprofit charitable institution or a charitable trust that
meets all of the following conditions:
(a) Is organized or established, as reflected in its articles
of incorporation or trust documents, for the purpose of acquiring,
maintaining, and protecting nature sanctuaries, nature preserves,
and natural areas in this state, that predominantly contain natural
habitat for fish, wildlife, and plants.
(b) Is required under its articles of incorporation, bylaws,
or trust documents to hold in perpetuity property acquired for the
purposes described in subdivision (a) unless both of the following
conditions are satisfied:
(i) That property is no longer suitable for the purposes
described in subdivision (a).
(ii) The sale of the property is approved by a majority vote of
the members or trustees.
(c) Its articles of incorporation, bylaws, or trust documents
prohibit any officer, shareholder, board member, employee, or
trustee or the family member of an officer, shareholder, board
member, employee, or trustee from benefiting from the sale of
property acquired for the purposes described in subdivision (a).
(8) (6)
If authorized by a resolution of the local tax
collecting unit in which the real or personal property is located,
real or personal property owned by a nonprofit charitable
institution that is occupied and used by the nonprofit charitable
institution's chief executive officer as his or her principal
residence as a condition of his or her employment and that is
contiguous to real property that contains the nonprofit charitable
institution's principal place of business is exempt from the
collection of taxes under this act.
(9) (7)
A charitable home of a fraternal or secret society,
or a nonprofit corporation whose stock is wholly owned by a
religious or fraternal society that owns and operates facilities
for the aged and chronically ill and in which the net income from
the operation of the corporation does not inure to the benefit of
any person other than the residents, is exempt from the collection
of taxes under this act.
(10) (8)
As used in this section:
(a) "Charitable trust" means a charitable trust registered
under the supervision of trustees for charitable purposes act, 1961
PA 101, MCL 14.251 to 14.266.
(b) "Governmental entity" means 1 or more of the following:
(i) The federal government or an agency, department, division,
bureau, board, commission, council, or authority of the federal
government.
(ii) This state or an agency, department, division, bureau,
board, commission, council, or authority of this state.
(iii) A county, city, township, village, local or intermediate
school district, or municipal corporation.
(iv) A public educational institution, including, but not
limited to, a local or intermediate school district, a public
school academy, a community college or junior college established
pursuant to section 7 of article VIII of the state constitution of
1963, or a state 4-year institution of higher education located in
this state.
(v) Any other authority or public body created under state
law.
(c) "Public school academy" means a public school academy
organized under the revised school code, 1976 PA 451, MCL 380.1 to
380.1852.