SB-1491, As Passed Senate, December 19, 2008

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1491

     A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending section 7d (MCL 211.7d), as amended by 1998 PA 469.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 7d. (1) Housing owned and operated by a nonprofit

corporation or association, by a limited dividend housing

corporation, or by this state, a political subdivision of this

state, or an instrumentality of this state, for occupancy or use

solely by elderly or disabled families is exempt from the

collection of taxes under this act. For purposes of this section,

housing is considered occupied solely by elderly or disabled

families even if 1 or more of the units is occupied by service

personnel, such as a custodian or nurse.

     (2) An owner of property may claim an exemption under this

section on a form prescribed by the department of treasury. The

assessor of the local tax collecting unit in which the property is

located shall approve or disapprove a claim for exemption under

this section. The assessor shall notify the owner in writing of the

exemption's approval or disapproval. An exemption under this

section begins on December 31 of the year in which the exemption is

approved under this subsection and, subject to subsection (3),

shall continue until the property is no longer used for occupancy

or use solely by elderly or disabled families.

     (3) If a claim for exemption is approved under subsection (2),

an owner of the property shall annually submit to the department of

treasury and to the assessor of the local tax collecting unit in

which the property is located an affidavit confirming eligibility

for the exemption under this section. If an affidavit confirming

eligibility for an exemption under this section is not submitted as

required under this subsection, the property's exemption is revoked

for that tax year and the property shall be assessed and shall be

subject to the collection of taxes as provided in this act. An

affidavit under this subsection shall be submitted not later than

May 1. The affidavit under this section shall be in a form

prescribed by the department of treasury.

(4) (2) If a local tax collecting unit has a tax roll for

collection, and the tax roll contains taxes assessed against

property for which an exemption is claimed under this section would

have been subject to the collection of taxes under this act if an

exemption had not been granted under this section, the appropriate

collecting officer shall prepare a statement for payment in lieu of

taxes on a form prescribed by the department of management and

budget describing the property for which an exemption is claimed

under this section, the names and addresses of the corporation or

association entitled to the exemption, the total amount of taxes

exempted, and the amount of taxes assessed against the property

treasury. The statement for payment in lieu of taxes shall include

all of the following:

     (a) A description of the property exempt under this section.

     (b) The name and address of the corporation, association, or

limited dividend housing corporation that owns the property exempt

under this section.

     (c) The base valuation of the property for determination of

the payment in lieu of taxes. The base valuation of the property

shall be determined as follows:

     (i) For property exempt under this section prior to the

effective date of the amendatory act that added this subdivision,

the property's taxable value on the assessment roll in the 2008 tax

year.

     (ii) For property not exempt under this section prior to the

effective date of the amendatory act that added this subdivision,

the taxable value of the property on the assessment roll in the

year in which a claim for exemption is made under this section or,

for new construction, the property's taxable value on the

assessment roll in the year in which construction is completed and

a certificate of occupancy, or similar document, is issued.

     (d) The total amount of payment in lieu of taxes, calculated

by multiplying the base valuation determined under subdivision (c)

by the number of mills levied by all taxing units in the local tax

collecting unit, excluding any mills that would have been levied

under all of the following:

     (i) Section 1211 of the revised school code, 1976 PA 451, MCL

380.1211.

     (ii) The state education tax act, 1993 PA 331, MCL 211.901 to

211.906.

     (5) The local tax collecting unit shall forward the statement

to the department of management and budget treasury not later than

December 1 of each tax year. Upon verification of the statement,

the state treasurer shall draw his or her warrant upon the state

treasury for the total amount of tax revenues lost by the local tax

collecting unit as a result of the exemption under this section as

shown by the statement described in subsection (4)(c). After

examining the statement, the state treasurer shall forward the

warrants to the treasurer of the local tax collecting unit not

later than 60 days after receipt of the statement.

     (6) The local tax collecting unit shall distribute the amount

received under subsection (5) in the same manner and in the same

proportions as general ad valorem taxes collected under this act.

(7) (3) The director of the department of management and

budget state treasurer shall estimate the amount necessary to meet

the expense of administering the provisions of this section in each

year, and the legislature shall appropriate an amount sufficient to

meet that expense in each year.

     (8) Property that is used for occupancy or use solely by

elderly or disabled families that is eligible for exemption under

this section is not subject to forfeiture, foreclosure, and sale

for taxes returned as delinquent under this act for any year in

which the property was exempt under this section.

     (9) An owner of property exempt under this section before the

effective date of the amendatory act that added this subsection

shall submit a claim for exemption under subsection (2) and any

subsequent affidavits confirming eligibility under subsection (3)

in order to continue to claim the exemption under this section.

(10) (4) As used in this section:

     (a) "Disabled person" means a person with disabilities.

     (b) "Elderly or disabled families" means families consisting

of 2 or more persons if the head of the household, or his or her

spouse, is 62 years of age or over or is a disabled person, and

includes a single person who is 62 years of age or over or is a

disabled person.

     (c) "Elderly person" means that term as defined in section 202

of title II of the housing act of 1959, Public Law 86-372, 12

U.S.C. USC 1701q.

     (d) "Housing" means new or rehabilitated structures with 8 or

more residential units in 1 or more of the structures for occupancy

and use by elderly or disabled persons, including essential

contiguous land and related facilities as well as all personal

property of the corporation, or association, or limited dividend

housing corporation used in connection with the facilities.

     (e) "Limited dividend housing corporation" means a corporation

incorporated or qualified under the laws of this state and chapter

6 of the state housing development authority act of 1966, 1966 PA

346, MCL 125.1481 to 125.1486, or a limited dividend housing

association organized and qualified under chapter 7 of the state

housing development authority act of 1966, 1966 PA 346, MCL

125.1491 to 125.1496, that will rehabilitate and own a housing

facility or project previously qualified, built, or financed under

section 202 of title II of the housing act of 1959, Public Law 86-

372, 12 USC 1701q, section 236 of title II of the national housing

act, chapter 847, 82 Stat. 498, 12 USC 1715z-1, or section 811 of

subtitle B of title VIII of the Cranston-Gonzalez national

affordable housing act, Public Law 101-625, 42 USC 8013.

     (f) "New construction" means that term as defined in section

34d.

(g) (e) "Nonprofit corporation or association" means a

nonprofit corporation or association incorporated under the laws of

this state not otherwise exempt from the collection of taxes under

this act, operating a housing facility or project qualified, built,

or financed under section 202 of title II of the housing act of

1959, Public Law 86-372, 12 U.S.C. USC 1701q, section 236 of title

II of the national housing act, chapter 847, 82 Stat. 498, 12

U.S.C. USC 1715z-1, or section 811 of subtitle B of title VIII of

the Cranston-Gonzalez national affordable housing act, Public Law

101-625, 42 U.S.C. USC 8013.

(h) (f) "Person with disabilities" means that term as defined

in section 811 of subtitle B of title VIII of the Cranston-Gonzalez

national affordable housing act, Public Law 101-625, 42 U.S.C. USC

8013.

(i) (g) "Residential units" includes 1-bedroom units licensed

under the adult foster care facility licensing act, 1979 PA 218,

MCL 400.701 to 400.737, for persons who share dining, living, and

bathroom facilities and who have a mental illness, developmental

disability, or a physical handicap disability, as those terms are

defined in the adult foster care facility licensing act, 1979 PA

218, MCL 400.701 to 400.737, or individual self-contained dwellings

in an unlicensed facility. At the time of construction or

rehabilitation, both self-contained dwellings and 1-bedroom units

must be financed under either under section 202 of title II of the

housing act of 1959, Public Law 86-372, 12 U.S.C. USC 1701q, or

under section 811 of subtitle B of title VIII of the Cranston-

Gonzalez national affordable housing act, Public Law 101-625, 42

U.S.C. USC 8013.

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

this amendatory act confirm that the department of treasury has

standing to appeal the assessed value, taxable value, state

equalized valuation, exempt status, classification, and all other

issues concerning tax liability in the Michigan tax tribunal and

all courts of this state for property exempt under section 7d of

the general property tax act, 1893 PA 206, MCL 211.7d.