HOUSE BILL No. 4681

 

June 4, 2015, Introduced by Reps. Dianda, Robinson, Singh, Pagan, Durhal, Plawecki and Chirkun and referred to the Committee on Tax Policy.

 

     A bill to authorize certain local governmental entities to

 

collect user fees for public services that are underfunded under

 

certain circumstances; to provide for the disbursement of the user

 

fees; and to provide for the powers and duties of certain state and

 

local governmental officers and entities.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

"public service providers indemnification act".

 

     Sec. 3. As used in this act:

 

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

 

1927 PA 360, MCL 209.101 to 209.107.

 

     (b) "Local tax collecting unit" means that term as used in the

 

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

 

     (c) "Local taxing unit" means that term as used in the general

 


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

 

     (d) "Public services" means all services and facilities

 

provided by a local taxing unit for public use that are funded in

 

whole or in part by taxes collected under the general property tax

 

act, 1893 PA 206, MCL 211.1 to 211.155.

 

     (e) "Qualified real property" means real property subject to

 

taxation under the general property tax act, 1893 PA 206, MCL 211.1

 

to 211.155, for which the taxable value was materially limited by a

 

final decision, finding, ruling, or order of a court or

 

administrative tribunal applying an assessment methodology that

 

valued that real property as if, at the time of valuation, it was

 

vacant and available for purchase when, in fact, it was occupied

 

and used for a substantial business purpose.

 

     (f) "Taxable value" means that value as determined under

 

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

 

211.27a.

 

     (g) "Underfunded public services" means public services

 

provided by a local taxing unit that benefit qualified real

 

property located within that unit's taxing jurisdiction.

 

     (h) "User fee" means the fee described in section 5.

 

     Sec. 5. (1) An owner of qualified real property benefited by

 

an underfunded public service shall pay a user fee for that service

 

in an amount that shall not exceed the additional property tax that

 

would have been levied under the general property tax act, 1893 PA

 

206, MCL 211.1 to 211.155, on the qualified real property for the

 

underfunded public service if the assessment methodology described

 

in section 3(e) had not been used.


     (2) The amount described in subsection (1) shall be determined

 

by the assessor of the local tax collecting unit in which the

 

qualified real property is located in a manner prescribed by the

 

commission.

 

     Sec. 7. (1) The user fee is an annual fee, payable at the same

 

times and to the same officer or officers as taxes imposed under

 

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

 

     (2) The officer or officers shall disburse each user fee

 

payment to the local taxing unit that provided the underfunded

 

public service for the qualified real property for which the fee

 

was imposed, and the disbursed amount shall not be used for any

 

other purpose.

 

     (3) The officer or officers shall send a copy of the amounts

 

disbursed to each local taxing unit under this section to the

 

commission on a form provided by the commission.