SB-0053, As Passed Senate, February 12, 2013
SUBSTITUTE FOR
SENATE BILL NO. 53
A bill to amend 2006 PA 379, entitled
"Qualified forest property recapture tax act,"
by amending section 4 (MCL 211.1034).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. The recapture tax under this act shall be imposed at
the following rate:
(a)
If Except as otherwise
provided in subdivision (c), if the
property is converted by a change in use and there have not been 1
or more harvests of forest products on that property consistent
with the approved forest management plan, the recapture tax shall
be calculated in the following manner:
(i) Multiply the property's state equalized
valuation taxable
value at the time the property is converted by a change in use by
the
total millage rate levied by all taxing units in the local tax
collecting
unit in which the property is located the number of
operating mills levied by the local school district in which the
property is located under section 1211 of the revised school code,
1976 PA 451, MCL 380.1211, reduced by the number of mills collected
as a fee for qualified forest property under section 7jj(9) of the
general property tax act, 1893 PA 206, MCL 211.7jj[1].
(ii) Multiply the product of the calculation under subparagraph
(i) by 7.the number of years the property had been exempt as
qualified forest property under section 7jj of the general property
tax act, 1893 PA 206, MCL 211.7jj[1], before the property was
converted by a change in use not to exceed the 7 years immediately
preceding the year in which the qualified forest property was
converted by a change in use.
(iii) Multiply the product of the calculation under subparagraph
(ii) by 2.
(b)
If Except as otherwise
provided in subdivision (c), if the
property is converted by a change in use and there have been 1 or
more harvests of forest products on that property consistent with
the approved forest management plan, the recapture tax shall be
calculated in the following manner:
(i) Multiply the property's state equalized
valuation taxable
value at the time the property is converted by a change in use by
the
total millage rate levied by all taxing units in the local tax
collecting
unit in which the property is located the number of
operating mills levied by the local school district in which the
property is located under section 1211 of the revised school code,
1976 PA 451, MCL 380.1211, reduced by the number of mills collected
as a fee for qualified forest property under section 7jj(9) of the
general property tax act, 1893 PA 206, MCL 211.7jj[1].
(ii) Multiply the product of the calculation under subparagraph
(i) by 7.the number of years the property had been exempt as
qualified forest property under section 7jj of the general property
tax act, 1893 PA 206, MCL 211.7jj[1], before the property was
converted by a change in use not to exceed the 7 years immediately
preceding the year in which the qualified forest property was
converted by a change in use.
(c) If the property was eligible for exemption under section
7jj of the general property tax act, 1893 PA 206, MCL 211.7jj[1],
as a result of the withdrawal of that property from the operation
of part 511 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.51101 to 324.51120, as provided in
section 51108(5) of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.51108, and the property is
converted by a change in use within 7 years after the withdrawal of
that property from the operation of part 511 of the natural
resources and environmental protection act, 1994 PA 451, MCL
324.51101 to 324.51120, the recapture tax is an amount equal to the
application fee and penalty that would have been assessed under
section 51108 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.51108, to withdraw that property from the
operation of part 511 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.51101 to 324.51120, in the
year in which the property is converted by a change of use,
calculated as if the property had not been withdrawn from the
operation of part 511 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.51101 to 324.51120. If the
property is converted by a change in use more than 7 years after
the withdrawal of that property from the operation of part 511 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.51101 to 324.51120, the recapture tax shall be
calculated under subdivision (a) or (b), as applicable.
(d) (c)
In addition to the recapture tax
calculated under
subdivision
(a), or (b), or (c), if property is
converted by a
change in use and the taxable value of the property was not
adjusted under section 27a(3) of the general property tax act, 1893
PA 206, MCL 211.27a, after a transfer of ownership of the property
due to the provisions of section 27a(7)(o) of the general property
tax act, 1893 PA 206, MCL 211.27a, the recapture tax shall include
the benefit received on that property.
Enacting section 1. This amendatory act takes effect June 1,
2013.