June 15, 2006, Introduced by Senators GOSCHKA, KUIPERS, CROPSEY, BARCIA and JOHNSON and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.157) by adding section 7jj.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7jj. (1) For taxes levied after December 31, 2004, new
construction on residential development property is exempt from the
collection of taxes under this act.
(2) To claim an exemption under subsection (1), an owner of
residential development property shall file an affidavit claiming
the exemption with the local tax collecting unit by May 1. The
affidavit shall be on a form prescribed by the department of
treasury.
(3) Upon receipt of an affidavit filed under subsection (2),
the assessor shall determine if the real property on which new
construction is located is residential development property. If the
real property is residential development property, the assessor
shall exempt the new construction located on that residential
development property from the collection of taxes under this act.
(4) Not more than 90 days after all or a portion of the
exempted new construction is no longer located on residential
development property, an owner shall rescind the exemption for the
new construction by filing with the local tax collecting unit a
rescission form. The rescission form shall be as prescribed by the
department of treasury.
(5) An owner of exempted new construction that is no longer
located on residential development property who fails to file a
rescission form as required under subsection (4) 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 $200.00. This penalty
shall be collected under 1941 PA 122, MCL 205.1 to 205.31, and
shall be deposited in the state school aid fund established in
section 11 of article IX of the state constitution of 1963. This
penalty may be waived by the department of treasury.
(6) An owner of new construction that is located on
residential development 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 in the year the exemption was claimed or
the immediately succeeding year. An owner of new construction that
is located on residential development 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.
(7) If the assessor of the local tax collecting unit believes
that new construction for which an exemption has been granted is
not located on residential development 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 an exemption under this section is erroneously granted,
an owner may request in writing that the local tax collecting unit
withdraw the exemption. If an owner requests that an exemption be
withdrawn, the local assessor shall notify the owner that the
exemption issued under this section has been denied based on that
owner's request. If an exemption is withdrawn, the new construction
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 the 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. If an owner requests that an exemption under this section
be withdrawn before that owner is contacted in writing by the local
assessor regarding that owner's eligibility for the exemption and
that owner pays the corrected tax bill issued under this subsection
within 30 days after the corrected tax bill is issued, that owner
is not liable for any penalty or interest on the additional tax. An
owner who pays a corrected tax bill issued under this subsection
more than 30 days after the corrected tax bill is issued is liable
for the penalties and interest that would have accrued if the
exemption had not been granted from the date the taxes were
originally levied.
(9) As used in this section:
(a) "Contiguous" means being in contact along a boundary or a
point. 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.
(b) "New construction" means that term as defined in section
34d.
(c) "Residential development property" means real property
that meets all of the following criteria:
(i) Is classified as residential real property under section
34c.
(ii) Is subject to 1 of the following conditions or is
contiguous to and associated with property that is subject to 1 of
the following conditions:
(A) A final plat for the real property is recorded pursuant to
the land division act, 1967 PA 288, MCL 560.101 to 560.293, after
the effective date of the amendatory act that added this section.
(B) A condominium subdivision plan is completed and a master
deed for all or a portion of the real property is recorded pursuant
to the condominium act, 1978 PA 59, MCL 559.101 to 559.276, after
the effective date of the amendatory act that added this section.
(C) The real property is included in a planned unit
development approved under section 16c of the county zoning act,
1943 PA 183, MCL 125.216c, section 16c of the township zoning act,
1943 PA 184, MCL 125.286c, or section 4b of the city and village
zoning act, 1921 PA 207, MCL 125.584b.
(D) The real property is included in a development under an
open space preservation provision or similar zoning ordinance
provision described in section 16h of the county zoning act, 1943
PA 183, MCL 125.216h, section 16h of the township zoning act, 1943
PA 184, MCL 125.286h, or section 4f of the city and village zoning
act, 1921 PA 207, MCL 125.584f.
(iii) A residential dwelling or condominium unit that is
occupied or that has ever been occupied is not located on the real
property.