September 6, 2018, Introduced by Rep. LaFave and referred to the Committee on Michigan Competitiveness.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding section 7xx.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7xx. (1) The governing body of a local tax collecting
unit may, as provided in this section, adopt a resolution to exempt
from the collection of taxes under this act specifically identified
real property that meets all of the following:
(a) Is located in an eligible distressed area.
(b) Is owned and used by a qualified health care entity
primarily to provide health services.
(c) Was purchased by that qualified health care entity from a
municipal health facilities corporation that previously owned and
used the property primarily to provide health services.
(2) A resolution adopted by the governing body of a local tax
collecting unit under subsection (1) must set forth the period
during which specifically identified real property is exempt, which
period shall not exceed 20 years. If the resolution is approved as
provided in this section, the exemption of that specifically
identified real property is effective on the December 31
immediately succeeding the adoption of the resolution and continues
in effect through December 30 in the final year of exemption as
determined in the resolution.
(3) A resolution adopted by the governing body of a local tax
collecting unit under subsection (1) may include terms and
conditions of the agreement by which the qualified health care
entity purchased the specifically identified real property from the
municipal health facilities corporation and upon which the
exemption under this section is predicated.
(4) Before acting on the resolution under subsection (1), the
clerk of the local tax collecting unit shall notify in writing the
assessor of the local tax collecting unit and the legislative body
of each taxing unit that levies ad valorem property taxes in the
local tax collecting unit. The governing body of the local tax
collecting unit shall afford the assessor and a representative of
the affected taxing units an opportunity for a hearing before
acting on the resolution under subsection (1). A copy of the
resolution adopted under subsection (1) shall be filed with the
state tax commission, the state treasurer, and all affected taxing
units. A resolution adopted under subsection (1) is not effective
unless approved as provided in subsection (5).
(5) Not more than 60 days after receipt of a copy of the
resolution adopted by the governing body of a local tax collecting
unit under subsection (1), the state tax commission shall determine
if the real property subject to the exemption meets the
requirements of subsection (1). If the state tax commission
determines that the real property subject to the exemption meets
the requirements of subsection (1), the state treasurer shall
approve the resolution adopted under subsection (1) if the state
treasurer determines that exempting that real property is necessary
to promote economic stability, prevent unemployment, and maintain
access to critical health services in the area served by the
qualified health care entity.
(6) Not more than 45 days after the state treasurer approves
under subsection (5) a resolution adopted under subsection (1), the
county in which the local tax collecting unit that adopted the
resolution under subsection (1) is located may by resolution elect
to withdraw all mills levied by that county from the exemption
under this section. If a county elects to withdraw all mills levied
by that county from the exemption under this section, the local tax
collecting unit shall levy and collect all mills levied by that
county on the real property owned by a qualified health care entity
identified in the resolution adopted under subsection (1). A copy
of a resolution adopted under this subsection shall be filed with
the local tax collecting unit, the state tax commission, and the
state treasurer.
(7) The state tax commission shall annually report to the
senate finance committee and house tax policy committee the total
number of qualified health care entities that are receiving an
exemption under this section.
(8) As used in this section:
(a) "Eligible distressed area" means that term as defined in
section 11 of the state housing development authority act of 1966,
1966 PA 346, MCL 125.1411.
(b) "Health care facilities" and "health services" mean those
terms as defined in section 103 of the municipal health facilities
corporations act, 1987 PA 230, MCL 331.1103.
(c) "Municipal health facilities corporation" means
"corporation" as that term is defined in section 103(d) of the
municipal health facilities corporations act, 1987 PA 230, MCL
331.1103.
(d) "Qualified health care entity" means a for-profit entity
that purchased health care facilities from a municipal health
facilities corporation and is using those facilities primarily to
provide health services.