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.