June 1, 2004, Introduced by Senators JELINEK, KUIPERS, HARDIMAN, GARCIA, ALLEN and BERNERO and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.157) by adding section 7hh.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 7hh. (1) The governing body of a local tax collecting
2 unit may adopt a resolution to exempt from the collection of
3 taxes under this act eligible nonprofit housing property. The
4 clerk of the local tax collecting unit shall notify in writing
5 the assessor of the local tax collecting unit and the legislative
6 body of each taxing unit that levies ad valorem property taxes in
7 the local tax collecting unit. Before acting on the resolution,
8 the governing body of the local tax collecting unit shall afford
9 the assessor and a representative of the affected taxing units an
10 opportunity for a hearing.
11 (2) The exemption under this section is effective on the
1 December 31 immediately succeeding the adoption of the resolution
2 by the governing body of the local tax collecting unit or the
3 issuance of a building permit for the eligible nonprofit housing
4 property, whichever is later. The exemption under this section
5 shall continue in effect for 2 years or until there is a transfer
6 of ownership of the eligible nonprofit housing property,
7 whichever occurs first. A copy of the resolution shall be filed
8 with the state tax commission.
9 (3) As used in this section:
10 (a) "Charitable nonprofit housing organization" means a
11 charitable nonprofit organization the primary purpose of which is
12 the construction or renovation of residential housing for
13 conveyance to a low-income person.
14 (b) "Eligible nonprofit housing property" means property
15 owned by a charitable nonprofit housing organization, the
16 ownership of which the charitable nonprofit housing organization
17 intends to transfer to a low-income person after construction or
18 renovation of the property is completed.
19 (c) "Family income" and "statewide median gross income" mean
20 those terms as defined in section 11 of the state housing
21 development authority act of 1966, 1966 PA 346, MCL 125.1411.
22 (d) "Low-income person" means a person with a family income
23 of not more than 60% of the statewide median gross income who is
24 eligible to participate in the charitable nonprofit housing
25 organization's program based on criteria established by the
26 charitable nonprofit housing organization.