CHARITABLE TRUST EXEMPTION - S.B. 1266: FLOOR ANALYSIS


Senate Bill 1266 (as reported without amendment)

Sponsor: Senator Glenn D. Steil

Committee: Economic Development, International Trade and Regulatory Affairs


CONTENT


The bill would amend the General Property Tax Act to provide an exemption from property taxes for property owned and occupied by a charitable trust, while occupied by that charitable trust solely for the charitable purposes for which the trust was established.


Currently, the Act makes an exemption for property owned and occupied by a nonprofit charitable institution while occupied by that institution solely for the purposes for which it was incorporated. Further, the Act provides a tax exemption for property owned by a nonprofit charitable institution that is leased, loaned, or otherwise made available to another nonprofit charitable institution, a nonprofit hospital, or a nonprofit educational institution, occupied by that entity solely for the purposes for which it was organized, and that would be exempt from taxes collected under the Act if the property were occupied by the lessor nonprofit charitable institution solely for the purposes for which it was organized. The bill would extend this exemption to property owned by a charitable trust.


Under the bill, "charitable trust" would mean a charitable trust registered under the Supervision of Trustees for Charitable Purposes Act; under that Act, the Attorney General is authorized to establish and maintain a register of charitable trusts.


MCL 211.7o - Legislative Analyst: G. Towne


FISCAL IMPACT


The bill would provide a property tax exemption for property owned and occupied by charitable trusts. Data are not available to determine the fiscal impact accurately.


Date Completed: 9-21-98 - Fiscal Analyst: R. Ross

floor\sb1266 - Analysis available @ http://www.michiganlegislature.org

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.