HOUSE BILL No. 6572

November 17, 2010, Introduced by Reps. Haines, Genetski, Rogers and Agema and referred to the Committee on Tax Policy.

A bill to provide for the exemption of certain property from

certain taxes; to levy and collect a specific tax upon the owners

of certain property; to provide for the disposition of the tax; to

prescribe the powers and duties of certain local government

officials; and to provide penalties.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

"adverse construction specific tax act".

Sec. 2. As used in this act:

(a) "Commission" means the state tax commission created by

1927 PA 360, MCL 209.101 to 209.107.

(b) "Construction project" and "eligible business" mean those

terms as defined in section 7oo of the general property tax act,

1893 PA 206, MCL 211.7oo.

under section 27a of the general property tax act, 1893 PA 206, MCL

211.27a.

Sec. 3. Real and personal property of an eligible business is

exempt from ad valorem property taxes collected under the general

property tax act, 1893 PA 206, MCL 211.1 to 211.155, as provided

under section 7oo of the general property tax act, 1893 PA 206, MCL

211.7oo.

Sec. 4. The assessor of each local tax collecting unit in

which there is property of an eligible business exempt under

section 7oo of the general property tax act, 1893 PA 206, MCL

211.7oo, shall determine annually as of December 31 the value and

taxable value of each parcel of that property located in that local

tax collecting unit.

Sec. 5. (1) There is levied upon the owner of every parcel of

property of an eligible business exempt under section 7oo of the

general property tax act, 1893 PA 206, MCL 211.7oo, a specific tax

to be known as the adverse construction property specific tax.

(2) The amount of the adverse construction specific tax in

each year shall be determined by multiplying 50% of the number of

mills that would be assessed in the local tax collecting unit if

the property were subject to the collection of taxes under the

general property tax act, 1893 PA 206, MCL 211.1 to 211.155, by the

property's taxable value.

(3) The adverse construction specific tax is an annual tax,

payable at the same times, in the same installments, and to the

same collecting officer or officers as taxes collected under the

general property tax act, 1893 PA 206, MCL 211.1 to 211.155.

(4) The collecting officer or officers shall disburse the

adverse construction specific tax to and among this state and

cities, townships, villages, school districts, counties, or other

taxing units, at the same times and in the same proportions as

required by law for the disbursement of taxes collected under the

general property tax act, 1893 PA 206, MCL 211.1 to 211.155.

(5) The collecting officer or officers shall send a copy of

the amount of disbursement made to each taxing unit under this

section to the commission on a form provided by the commission.

(6) Real and personal property of an eligible business that is

located in a renaissance zone under the Michigan renaissance zone

act, 1996 PA 376, MCL 125.2681 to 125.2696, is exempt from the

adverse construction specific tax levied under this act to the

extent and for the duration provided pursuant to the Michigan

renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696, except

for that portion of the adverse construction specific tax

attributable to a tax described in section 7ff(2) of the general

property tax act, 1893 PA 206, MCL 211.7ff. The adverse

construction specific tax calculated under this subsection shall be

disbursed proportionately to the taxing unit or units that levied

the tax described in section 7ff(2) of the general property tax

act, 1893 PA 206, MCL 211.7ff.

Sec. 6. Unpaid adverse construction specific taxes are subject

to forfeiture, foreclosure, and sale in the same manner and at the