September 26, 2013, Introduced by Reps. O'Brien, Bumstead, Foster, Rendon, Lane, Outman, Schmidt and Rogers and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 7ss (MCL 211.7ss), as added by 2012 PA 494.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
7ss. (1) For taxes levied after November 1, 2012, new
construction
on real property that is development property and any
new construction located on that development property is exempt
from the collection of the tax levied under section 1211 of the
revised school code, 1976 PA 451, MCL 380.1211, for 3 years or
until
the new construction real
property is no longer located on
development property, whichever occurs first.
(2) To claim an exemption under subsection (1), an owner of
development property shall file an affidavit claiming the exemption
with the local tax collecting unit on or before June 1 for the
immediately succeeding summer tax levy and all subsequent tax
levies or on or before November 1 for the immediately succeeding
winter tax levy and all subsequent tax levies. The affidavit shall
be on a form prescribed by the department of treasury.
(3) Upon receipt of an affidavit filed under subsection (2),
the
assessor shall determine if the real property on which new
construction
is located is development property.
If the real
property is development property, the assessor shall exempt the
development property and any new construction located on that
development property from the collection of the tax levied under
section 1211 of the revised school code, 1976 PA 451, MCL 380.1211,
for
3 years or until the new construction real property is no
longer
located on development property, whichever occurs first.
(4) Not more than 90 days after all or a portion of the
exempted
new construction real
property is no longer located on
development property, an owner shall rescind the exemption for the
development property and any new construction located on that
development property by filing with the local tax collecting unit a
rescission form. The rescission form shall be as prescribed by the
department of treasury.
(5)
An owner of exempted new construction real property that
is
no longer located on development property who fails to file a
rescission form as required under subsection (4) is subject to a
penalty of $5.00 per day for each separate failure beginning after
the 90 days have elapsed, up to a maximum of $200.00. This penalty
shall be collected under 1941 PA 122, MCL 205.1 to 205.31, and
shall be deposited in the state school aid fund established in
section 11 of article IX of the state constitution of 1963. This
penalty may be waived by the department of treasury.
(6)
An owner of new construction that is located on
development property for which an exemption was not on the tax roll
may file an appeal with the July or December board of review in the
year the exemption was claimed or the immediately succeeding year.
An
owner of new construction that is located on development
property for which an exemption was denied by the assessor in the
year the affidavit was filed may file an appeal with the July board
of review for summer taxes or, if there is not a summer levy of
school operating taxes, with the December board of review.
(7) If the assessor of the local tax collecting unit believes
that
new construction real
property for which an exemption has
been
granted
is not located on development property, the assessor may
deny or modify an existing exemption by notifying the owner in
writing at the time required for providing a notice under section
24c. A taxpayer may appeal the assessor's determination to the
board of review meeting under section 30. A decision of the board
of review may be appealed to the residential and small claims
division of the Michigan tax tribunal.
(8) If an exemption under this section is erroneously granted,
an owner may request in writing that the local tax collecting unit
withdraw the exemption. If an owner requests that an exemption be
withdrawn, the local assessor shall notify the owner that the
exemption issued under this section has been denied based on that
owner's
request. If an exemption is withdrawn, the new construction
real property that had been subject to that exemption shall be
immediately placed on the tax roll by the local tax collecting unit
if the local tax collecting unit has possession of the tax roll or
by the county treasurer if the county has possession of the tax
roll as though the exemption had not been granted. A corrected tax
bill shall be issued for the tax year being adjusted by the local
tax collecting unit if the local tax collecting unit has possession
of the tax roll or by the county treasurer if the county has
possession of the tax roll. If an owner requests that an exemption
under this section be withdrawn before that owner is contacted in
writing by the local assessor regarding that owner's eligibility
for the exemption and that owner pays the corrected tax bill issued
under this subsection within 30 days after the corrected tax bill
is issued, that owner is not liable for any penalty or interest on
the additional tax. An owner who pays a corrected tax bill issued
under this subsection more than 30 days after the corrected tax
bill is issued is liable for the penalties and interest that would
have accrued if the exemption had not been granted from the date
the taxes were originally levied.
(9) As used in this section:
(a) "Development property" means real property on which a
residential dwelling, condominium unit, or other residential
structure is located, which residential dwelling, condominium unit,
or other residential structure meets all of the following
conditions:
(i) Is not occupied and has never been occupied.
(ii) Is available for sale.
(iii) Is not leased.
(iv) Is not used for any business or commercial purpose, except
as an on-site office in a specific development.
(b) "New construction" means that term as defined in section
34d.
Enacting section 1. This amendatory act is retroactive and is
effective for taxes levied after November 1, 2012.