December 1, 2005, Introduced by Senators VAN WOERKOM, JELINEK, GARCIA, BIRKHOLZ, STAMAS, JOHNSON, ALLEN and GILBERT and referred to the Committee on Agriculture, Forestry and Tourism.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 53b (MCL 211.53b), as amended by 2003 PA 105,
and by adding section 7jj; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7jj. (1) Qualified forest property is exempt from the tax
levied by a local school district for school operating purposes to
the extent provided under section 1211 of the revised school code,
1976 PA 451, MCL 380.1211, according to the provisions of this
section.
(2) To claim an exemption under subsection (1), the owner of
qualified forest property shall file an affidavit claiming the
exemption with the local tax collecting unit by May 1.
(3) The affidavit shall be on a form prescribed by the
department of treasury and shall require the person submitting the
affidavit to attest that the property for which the exemption is
claimed is qualified forest property.
(4) The assessor shall determine if the property is qualified
forest property and if so shall exempt the property from the
collection of the tax as provided in subsection (1) until December
31 of the year in which the property is no longer qualified forest
property.
(5) Not more than 90 days after all or a portion of the
exempted property is no longer qualified forest property, the owner
shall rescind the exemption for the applicable portion of the
property by filing with the local tax collecting unit a rescission
form prescribed by the department of treasury. An owner who fails
to file a rescission as required by this subsection is subject to a
penalty of $5.00 per day for each separate failure beginning after
the 90 days have elapsed, up to a maximum of $1,000.00. This
penalty shall be collected under 1941 PA 122, MCL 205.1 to 205.31,
and shall be deposited in the general fund of this state. This
penalty may be waived by the department of treasury.
(6) An owner of property that is qualified forest property on
May 1 for which an exemption was not on the tax roll may file an
appeal with the July or December board of review under section 53b
in the year the exemption was claimed or the immediately succeeding
year. An owner of property that is qualified forest property on May
1 for which an exemption was denied by the assessor in the year the
affidavit was filed may file an appeal with the July board of
review for summer taxes or, if there is not a summer levy of school
operating taxes, with the December board of review under section
53b.
(7) If the assessor of the local tax collecting unit believes
that the property for which an exemption has been granted is not
qualified forest property, the assessor may deny or modify an
existing exemption by notifying the owner in writing at the time
required for providing a notice under section 24c. A taxpayer may
appeal the assessor's determination to the board of review meeting
under section 30. A decision of the board of review may be appealed
to the residential and small claims division of the Michigan tax
tribunal.
(8) If property for which an exemption has been granted under
this section is not qualified forest property, the property that
had been subject to that exemption shall be immediately placed on
the tax roll by the local tax collecting unit if the local tax
collecting unit has possession of the tax roll or by the county
treasurer if the county has possession of the tax roll as though
the exemption had not been granted. A corrected tax bill shall be
issued for each tax year being adjusted by the local tax collecting
unit if the local tax collecting unit has possession of the tax
roll or by the county treasurer if the county has possession of the
tax roll.
(9) If property for which an exemption has been granted under
this section is converted by a change in use and is no longer
qualified forest property, the property is subject to the qualified
forest property recapture tax levied under the qualified forest
property recapture tax act.
(10) The state treasurer shall annually pay from the general
fund of this state to the state school aid fund established in
section 11 of article IX of the state constitution of 1963, an
amount equal to the total amount of the tax exempted under this
section in each year.
(11) Beginning in 2008, and every 3 years thereafter, the
department of treasury shall provide to the standing committees of
the senate and the house of representatives with primary
jurisdiction over forestry issues a report that includes both of
the following:
(a) The number of acres of qualified forest property in each
county.
(b) The amount of timber produced on qualified forest property
each year.
(12) As used in this section:
(a) "Approved forest management plan" means a forest
management plan for harvesting, planting, and regeneration of
forest products that has been prepared by a certified or registered
forester and that contains mandatory and recommended management
practices.
(b) "Certified forester" means a person certified as a
forester by the society of American foresters.
(c) "Converted by a change in use" means that term as defined
in section 2 of the qualified forest property recapture tax act.
(d) "Forest products" includes, but is not limited to, timber
and pulpwood-related products.
(e) "Qualified forest property" means a parcel of real
property that meets all of the following conditions:
(i) Is not less than 20 contiguous acres in size, of which not
less than 80% is productive forest capable of producing wood
products. Contiguity is not broken by a road, a right-of-way, or
property purchased or taken under condemnation proceedings by a
public utility for power transmission lines if the 2 parcels
separated by the purchased or condemned property were a single
parcel prior to the sale or condemnation. As used in this
subparagraph, "productive forest" means real property capable of
growing not less than 50 cubic feet of wood per acre per year.
(ii) Is stocked with forest products.
(iii) Has no buildings or structures located on the real
property.
(iv) Is subject to an approved forest management plan.
(v) Is subject to a development rights agreement or
development rights easement under part 361 of the natural resources
and environmental protection act, 1994 PA 451, MCL 324.36101 to
324.36117.
(f) "Registered forester" means a person registered as a
forester under article 21 of the occupational code, 1980 PA 299,
MCL 339.2101 to 339.2108.
Sec. 53b. (1) If there has been a clerical error or a mutual
mistake of fact relative to the correct assessment figures, the
rate of taxation, or the mathematical computation relating to the
assessing of taxes, the clerical error or mutual mistake of fact
shall be verified by the local assessing officer and approved by
the board of review at a meeting held for the purposes of this
section on Tuesday following the second Monday in December and, for
summer property taxes, on Tuesday following the third Monday in
July. If there is not a levy of summer property taxes, the board of
review may meet for the purposes of this section on Tuesday
following the third Monday in July. If approved, the board of
review shall file an affidavit within 30 days relative to the
clerical error or mutual mistake of fact with the proper officials
who are involved with the assessment figures, rate of taxation, or
mathematical computation and all affected official records shall be
corrected. If the clerical error or mutual mistake of fact results
in an overpayment or underpayment, the rebate, including any
interest paid, shall be made to the taxpayer or the taxpayer shall
be notified and payment made within 30 days of the notice. A rebate
shall be without interest. The county treasurer may deduct the
rebate from the appropriate tax collecting unit's subsequent
distribution of taxes. The county treasurer shall bill to the
appropriate tax collecting unit the tax collecting unit's share of
taxes rebated. Except as otherwise provided in subsection (6), a
correction under this subsection may be made in the year in which
the error was made or in the following year only.
(2) Action pursuant to this section may be initiated by the
taxpayer or the assessing officer.
(3) The board of review meeting in July and December shall
meet only for the purpose described in subsection (1) and to hear
appeals
provided for in sections 7u, 7cc,
and 7ee, and 7jj.
If an
exemption under section 7u is approved, the board of review shall
file an affidavit with the proper officials involved in the
assessment and collection of taxes and all affected official
records
shall be corrected. If an appeal under section 7cc, or
7ee, or 7jj results in a determination that an overpayment has been
made, the board of review shall file an affidavit and a rebate
shall be made at the times and in the manner provided in subsection
(1).
Except as otherwise provided in sections 7cc, and 7ee, and
7jj, a correction under this subsection shall be made for the year
in which the appeal is made only. If the board of review grants an
exemption
or provides a rebate for property under section 7cc, or
7ee, or 7jj as provided in this subsection, the board of review
shall require the owner to execute the affidavit provided for in
section
7cc, or 7ee,
or 7jj and shall forward a copy of any
section 7cc affidavits to the department of treasury.
(4) If an exemption under section 7cc is granted by the board
of review under this section, the provisions of section 7cc(6)
through (11) apply. If an exemption under section 7cc is not
granted by the board of review under this section, the owner may
appeal that decision in writing to the department of treasury
within 35 days of the board of review's denial and the appeal shall
be
conducted as provided in section 7cc(7) 7cc(8).
(5) An owner or assessor may appeal a decision of the board of
review under this section regarding an exemption under section 7ee
or 7jj to the residential and small claims division of the Michigan
tax tribunal. An owner is not required to pay the amount of tax in
dispute in order to receive a final determination of the
residential and small claims division of the Michigan tax tribunal.
However, interest and penalties, if any, shall accrue and be
computed based on interest and penalties that would have accrued
from the date the taxes were originally levied as if there had not
been an exemption.
(6) A correction under this section that grants a homestead
exemption
pursuant to section 7cc(21) 7cc may be made for the
year in which the appeal was filed and the 3 immediately preceding
tax years.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No. 913.
(b) Senate Bill No. 914.
Enacting section 2. Part 513 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.51301 to
324.51312, is repealed effective September 1, 2007.