SB-1491, As Passed Senate, November 6, 2008

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

department of treasury, in consultation with the Michigan state

housing development authority, shall approve or disapprove a claim

for exemption under this section. The department of treasury shall

notify in writing the owner and the assessor of the local tax

collecting unit in which the property is located 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

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 December 31. 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, the

appropriate collecting officer shall prepare a statement on a form

prescribed by the department of management and budget treasury

describing the property for which an exemption is claimed under

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

association, or limited dividend housing corporation entitled to

the exemption, the total amount of taxes exempted, and the amount

of taxes assessed against the property. The local tax collecting

unit shall forward the statement to the department of management

and budget treasury. 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. After examining the statement, the state treasurer

shall forward the warrants to the treasurer of the local tax

collecting unit.

(5) (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.

     (6) 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.

     (7) 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.

(8) (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) (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.

(g) (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.

(h) (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, which

is responsible for payment to local tax collecting units for the

amount of taxes that would have been assessed against property but

for the exemption under section 7d of the general property tax act,

1893 PA 206, MCL 211.7d, has standing to appeal that property's

assessed value, taxable value, state equalized valuation, exempt

status, classification, and all other issues concerning tax

liability of that property in the Michigan tax tribunal and all

courts of this state.