HOUSE BILL No. 4941

 

July 2, 2003, Introduced by Reps. Tobocman, Hunter, Dennis and Gillard and referred to the Committee on Tax Policy.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1893 PA 206, entitled                                             

                                                                                

    "The general property tax act,"                                             

                                                                                

    by amending section 7d (MCL 211.7d), as amended by 1998 PA 469.             

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 7d.  (1) Housing owned and operated by a nonprofit                     

                                                                                

2   corporation or association or by this state, a political                    

                                                                                

3   subdivision of this state, or an instrumentality of this state,             

                                                                                

4   for occupancy or use solely by elderly persons or disabled                  

                                                                                

5   families  persons is exempt from the collection of taxes under             

                                                                                

6   this act.  For purposes of this section, housing is considered              

                                                                                

7   occupied solely by elderly persons or disabled  families  persons           

                                                                                

8   even if 1 or more of the residential units is occupied by service           

                                                                                

9   personnel, such as a custodian or nurse.                                    

                                                                                

10      (2) If a local tax collecting unit has a tax roll for                       

                                                                                

11  collection, and the tax roll contains taxes assessed against                

                                                                                


                                                                                

1   property for which an exemption is claimed under this section,              

                                                                                

2   the appropriate collecting officer shall prepare a statement on a           

                                                                                

3   form prescribed by the department of management and budget                  

                                                                                

4   describing the property for which an exemption is claimed under             

                                                                                

5   this section, the names and addresses of the nonprofit                      

                                                                                

6   corporation or association entitled to the exemption, the total             

                                                                                

7   amount of taxes exempted, and the amount of taxes assessed                  

                                                                                

8   against the property.  The local tax collecting unit shall                  

                                                                                

9   forward the statement to the department of management and                   

                                                                                

10  budget.  Upon verification of the statement, the state treasurer            

                                                                                

11  shall draw his or her warrant upon the state treasury for the               

                                                                                

12  total amount of tax revenues lost by the local tax collecting               

                                                                                

13  unit as a result of the exemption under this section as shown by            

                                                                                

14  the statement.  After examining the statement, the state                    

                                                                                

15  treasurer shall forward the warrants to the treasurer of the                

                                                                                

16  local tax collecting unit.                                                  

                                                                                

17      (3) The director of the department of management and budget                 

                                                                                

18  shall estimate the amount necessary to meet the expense of                  

                                                                                

19  administering the provisions of this section in each year, and              

                                                                                

20  the legislature shall appropriate an amount sufficient to meet              

                                                                                

21  that expense in each year.                                                  

                                                                                

22      (4) As used in this section:                                                

                                                                                

23      (a) "Disabled person" means a person with disabilities.                     

                                                                                

24      (b) "Elderly or disabled families" means families                           

                                                                                

25  consisting of 2 or more persons if the head of the household, or            

                                                                                

26  his or her spouse, is 62 years of age or over or is a disabled              

                                                                                

27  person, and includes a single person who is 62 years of age or              


                                                                                

1   over or is a disabled person.                                               

                                                                                

2       (b)  (c)  "Elderly person" means that term as defined in                    

                                                                                

3   section 202 of title II of the housing act of 1959, Public Law              

                                                                                

4   86-372, 12 U.S.C. 1701q.                                                    

                                                                                

5       (c)  (d)  "Housing" means  new or rehabilitated  a structure                

                                                                                

6   or group of structures with 8 or more residential units  in 1 or            

                                                                                

7   more of the structures  for occupancy and use by elderly persons            

                                                                                

8   or disabled persons  , including  or, for taxes levied after                

                                                                                

9   December 31, 2002, 2 or more residential units for occupancy and            

                                                                                

10  use by disabled persons.  Housing includes essential contiguous             

                                                                                

11  land and related facilities  as well as  and all personal                   

                                                                                

12  property of the nonprofit corporation or association used in                

                                                                                

13  connection with the facilities.                                             

                                                                                

14      (d)  (e)  "Nonprofit corporation or association" means a                    

                                                                                

15  nonprofit corporation or association incorporated under the laws            

                                                                                

16  of this state not otherwise exempt from the collection of taxes             

                                                                                

17  under this act.  , operating a housing facility or project                  

                                                                                

18  qualified, built, or financed under section 202 of title II of              

                                                                                

19  the housing act of 1959, Public Law 86-372, 12 U.S.C. 1701q,                

                                                                                

20  section 236 of title II of the national housing act, chapter 847,           

                                                                                

21  82 Stat. 498, 12 U.S.C. 1715z-1, or section 811 of subtitle B of            

                                                                                

22  title VIII of the Cranston-Gonzalez national affordable housing             

                                                                                

23  act, Public Law 101-625, 42 U.S.C. 8013.                                    

                                                                                

24      (e)  (f)  "Person with disabilities" means that term as                     

                                                                                

25  defined in section 811 of subtitle B of title VIII of the                   

                                                                                

26  Cranston-Gonzalez national affordable housing act, Public Law               

                                                                                

27  101-625, 42 U.S.C. 8013.                                                    


                                                                                

1       (f)  (g)  "Residential units" includes  1-bedroom  any of                   

                                                                                

2   the following:                                                              

                                                                                

3                                                                                (i) One-bedroom units licensed under the adult foster care                          

                                                                                

4   facility licensing act, 1979 PA 218, MCL 400.701 to 400.737, for            

                                                                                

5   persons who share dining, living, and bathroom facilities and who           

                                                                                

6   have a mental illness, developmental disability, or a physical              

                                                                                

7   handicap  disability, as those terms are defined in the adult              

                                                                                

8   foster care facility licensing act, 1979 PA 218, MCL 400.701 to             

                                                                                

9   400.737,  or individual  financed at the time of construction or            

                                                                                

10  rehabilitation under either section 202 of title II of the                  

                                                                                

11  housing act of 1959, Public law 86-372, 12 U.S.C. 1701q, section            

                                                                                

12  236 of title II of the national housing act, chapter 847, 82                

                                                                                

13  Stat. 498, 12 U.S.C. 1715z-1, or under section 811 of subtitle B            

                                                                                

14  of title VIII of the Cranston-Gonzalez national affordable                  

                                                                                

15  housing act, Public Law 101-625, 42 U.S.C. 8013.                            

                                                                                

16      (ii) Individual self-contained dwellings in an unlicensed                    

                                                                                

17  facility  .  At  financed at the time of construction or                    

                                                                                

18  rehabilitation  , both self-contained dwellings and 1-bedroom               

                                                                                

19  units must be financed  under either section 202 of title II of             

                                                                                

20  the housing act of 1959, Public Law 86-372, 12 U.S.C. 1701q, or             

                                                                                

21  under section 811 of subtitle B of title VIII of the                        

                                                                                

22  Cranston-Gonzalez national affordable housing act, Public Law               

                                                                                

23  101-625, 42 U.S.C. 8013.                                                    

                                                                                

24      (iii) One-bedroom units in a structure or group of                           

                                                                                

25  structures for disabled persons who share dining, living, and               

                                                                                

26  bathroom facilities and who have a mental illness, developmental            

                                                                                

27  disability, or physical disability, as those terms are defined in           


                                                                                

1   the adult foster care facility licensing act, 1979 PA 218, MCL              

                                                                                

2   400.701 to 400.737.