HOUSE BILL No. 5149

 

October 9, 2003, Introduced by Reps. Koetje and Nofs and referred to the Committee on Tax Policy.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1893 PA 206, entitled                                             

                                                                                

    "The general property tax act,"                                             

                                                                                

    (MCL 211.1 to 211.157) by adding section 7gg.                               

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 7gg.  (1) The governing body of a city, village, or                    

                                                                                

2   township may adopt a resolution to exempt from the collection of            

                                                                                

3   taxes under this act all principal residence property located in            

                                                                                

4   1 or more eligible distressed areas designated in the                       

                                                                                

5   resolution.  A copy of the resolution shall be filed with the               

                                                                                

6   state tax commission and shall not become effective unless                  

                                                                                

7   approved as provided in subsection (3).                                     

                                                                                

8       (2) Subject to subsection (3), the exemption under this                     

                                                                                

9   section shall become effective on the December 31 immediately               

                                                                                

10  succeeding the adoption of the resolution by the governing body             

                                                                                

11  of the city, village, or township and shall continue in effect              

                                                                                


                                                                                

1   for a period specified in the resolution, not to exceed 12 years,           

                                                                                

2   or until the principal residence's exemption is rescinded                   

                                                                                

3   pursuant to section 7cc.                                                    

                                                                                

4       (3) Not more than 60 days after receipt of a copy of a                      

                                                                                

5   resolution adopted under subsection (1), the state tax commission           

                                                                                

6   shall approve or disapprove the resolution.  The state tax                  

                                                                                

7   commission shall approve the resolution if the state tax                    

                                                                                

8   commission determines that the exemption is necessary to                    

                                                                                

9   encourage residential home ownership within an eligible                     

                                                                                

10  distressed area designated in the resolution.  The state                    

                                                                                

11  treasurer shall advise the state tax commission as to whether               

                                                                                

12  exempting principal residence property in an eligible distressed            

                                                                                

13  area is necessary to encourage residential home ownership within            

                                                                                

14  the eligible distressed area.                                               

                                                                                

15      (4) Principal residence property exempt under this section is               

                                                                                

16  subject to the specific tax levied under the principal residence            

                                                                                

17  alternative tax act.                                                        

                                                                                

18      (5) As used in this section:                                                

                                                                                

19      (a) "Eligible distressed area" means that term as defined in                

                                                                                

20  section 11 of the state housing development authority act of                

                                                                                

21  1966, 1966 PA 346, MCL 125.1411.                                            

                                                                                

22      (b) "Principal residence" means that term as defined in                     

                                                                                

23  section 7dd.                                                                

                                                                                

24      (c) "Principal residence property" means a homestead for                    

                                                                                

25  which an exemption has been granted pursuant to section 7cc.                

                                                                                

26      Enacting section 1.  This amendatory act does not take                      

                                                                                

27  effect unless Senate Bill No. ______ or House Bill No. 5150                 


                                                                                

1   (request no. 03857'03 a) of the 92nd Legislature is enacted into            

                                                                                

2   law.