May 20, 2008, Introduced by Senators BARCIA, PRUSI, KAHN, PAPPAGEORGE, ALLEN, GLEASON, HARDIMAN and BIRKHOLZ and referred to the Committee on Agriculture.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending section 51108 (MCL 324.51108), as amended by 2006 PA
382.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 51108. (1) An owner of a commercial forest may withdraw
his or her land, in whole or in part, from the operation of this
part upon application to the department and payment of the
withdrawal application fee and penalty, as provided in this
section.
(2) Except as otherwise provided by this section, upon
application to the department to withdraw commercial forestland
from the operation of this part, the applicant shall forward to the
department a withdrawal application fee in the amount of $1.00 per
acre with a minimum withdrawal application fee of $200.00 per
application and a maximum withdrawal application fee of $1,000.00
per application.
(3) Except as otherwise provided in this section, an
application to withdraw commercial forestland from the operation of
this part shall be granted upon the payment to the township
treasurer in which the commercial forestland is located of a
penalty.
Except as provided in subsection (4) For applications to
withdraw commercial forestland filed on or after September 27,
2007, the withdrawal penalty shall be calculated in the following
manner:
(a) Multiply the number of acres of commercial forestland
withdrawn from the operation of this part by the average taxable
value
per acre for comparable property acquired within the last 10
years
under subpart 14 of part 21, as determined by the state tax
commission
under section 2153 timber-cutover
real property within
the township in which the commercial forestland is located as of
December 31, 2006 as determined by the department. If the
department is not able to determine the average taxable value per
acre on timber-cutover real property within the township due to the
lack of sufficient quantities of timber-cutover real property
within the township, the department shall make the determination of
the average taxable value per acre on timber-cutover real property
using timber-cutover real property in the county in which the
commercial forestland is located. If the department cannot
determine the average taxable value per acre on timber-cutover real
property within the county due to the lack of sufficient quantities
of timber-cutover real property in the county, the department shall
make the determination of average taxable value per acre on timber-
cutover real property by using timber-cutover real property located
in the Lower Peninsula if the commercial forestland is located in
the Lower Peninsula, and by using the timber-cutover real property
in the Upper Peninsula if the commercial forestland is located in
the Upper Peninsula. The average taxable value per acre on timber-
cutover real property determined under this subdivision shall be
that value as of December 31, 2006 as previously determined by the
department. Beginning in 2007 and each year after 2007, the average
taxable value per acre on timber-cutover real property may increase
by not more than the increase in the immediately preceding year in
the general price level or 5%, whichever is less. Each year, the
department shall publish on its website the average taxable value
per acre of timber-cutover real property for every township in
which commercial forestland is located as determined under this
subdivision and shall also publish the formula to calculate the
withdrawal penalty described in this subsection. As used in this
subdivision:
(i) "General price level" means that term as defined in section
33 of article IX of the state constitution of 1963.
(ii) "Timber-cutover real property" means real property
classified as timber-cutover real property under section 34c of the
general property tax act, 1893 PA 206, MCL 211.3c.
(b) Multiply the product of the calculation in subdivision (a)
by the total millage rate levied by all taxing units in the local
tax collecting unit in which the property is located.
(c) Multiply the product of the calculation in subdivision (b)
by the number of years, to a maximum of 7 years, in which the
property withdrawn from the operation of this part has been
designated as commercial forestland under this part.
(d) Multiply the product of the calculation in subdivision (c)
by 2.
(4)
For a period of 1 year after the effective date of the
2006
amendments to this section, the withdrawal penalty is as
follows:
(a)
Subject to subdivision (b), the withdrawal penalty that
was
in effect immediately prior to the effective date of the 2006
amendments
to this section.
(b)
If all of the following occur, an owner of commercial
forestland
is not subject to a withdrawal penalty:
(i) An owner of commercial forestland withdraws his or
her land
from
the operation of this part as provided in this section.
(ii) The former commercial forestland is placed on the
assessment
roll in the local tax collecting unit in which the
former
commercial forestland is located.
(iii) The owner of the former commercial forestland
claims and
is
granted an exemption from the tax levied by a local school
district
for school operating purposes under section 7jj of the
general
property tax act, 1893 PA 206, MCL 211.7jj.
(4) (5)
An application to withdraw
commercial forestland from
the operation of this part that meets 1 or more of the following
requirements shall be granted without payment of the withdrawal
application fee or penalty under this section:
(a) Commercial forestland that has been donated to a public
body for public use prior to withdrawal.
(b) Commercial forestland that has been exchanged for property
belonging to a public body if the property received is designated
as a commercial forest as determined by the department.
(c) Commercial forestland that has been condemned for public
use.
(5) (6)
The department shall remit the
withdrawal application
fee paid pursuant to subsection (2) to the state treasurer for
deposit into the fund. The penalty received by the township
treasurer under subsection (3) shall be distributed by the township
treasurer in the same proportions to the various funds as the ad
valorem general property tax is allocated in the township, except
as provided by section 51109(2).
(6) (7)
If an application to withdraw
commercial forestland is
granted, the department shall immediately notify the applicant, the
supervisor of the township, and the register of deeds of the county
in which the lands are located of the action and shall file with
those officials a list of the lands withdrawn.