SENATE BILL No. 106

 

 

January 27, 2005, Introduced by Senator BASHAM and referred to the Committee on Finance.

 

 

 

 

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending sections 2a and 34c (MCL 211.2a and 211.34c), section

 

2a as amended by 1982 PA 539 and section 34c as amended by 2002 PA

 

620; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2a. (1)  For  Before January 1, 2005, for purposes of

 

section 2, a mobile home  which  that is not  covered by  subject

 

to the specific tax levied under section 41 of  Act No. 243 of the

 

Public Acts of 1959, being section 125.1041 of the Michigan

 

Compiled Laws, and while  1959 PA 243, MCL 125.1041, located on  

 

land otherwise assessable as  real property  under this act, and  

 

not exempt from the collection of taxes under this act, whether or

 


not permanently affixed to  the soil, shall be  that real property,

 

is considered real property and shall be assessed as part of the

 

real property  upon  on which the mobile home is located.

 

     (2) After December 31, 2004, for purposes of section 2, a

 

mobile home located on real property, whether or not permanently

 

affixed to that real property, is real property and shall be

 

assessed as real property to the owner of the mobile home. For

 

taxes levied after December 31, 2004 and before January 1, 2006, a

 

mobile home's taxable value is 50% of that mobile home's true cash

 

value. For taxes levied after December 31, 2005, a mobile home's

 

taxable value is that value determined under section 27a.

 

     (3)   (2)  As used in this section, "mobile home" does not

 

include a travel trailer or camping trailer  which  that is either

 

parked in a campground licensed by this state for not more than 180

 

days in any calendar year, or parked  upon  on private property,

 

including a designated storage area of a licensed campground, for

 

the sole purpose of storage.

 

     (4)   (3)  As used in this section, "mobile home" does not

 

include a truck camper  which is  parked in a campground licensed

 

by this state  which  that is a portable structure, designed and

 

constructed to be loaded onto  ,  or affixed to  ,  the bed or

 

chassis of a truck, and  which  that is used to provide temporary

 

living quarters for recreational camping or travel.

 

     (5)   (4) For purposes of  As used in this section:  , the

 

following definitions shall apply:

 

     (a)  A travel trailer is  "Travel trailer" means a vehicular

 

portable structure mounted on wheels  and of  that is a size and

 


weight  as  that does not  to  require special highway movement

 

permits  when  if drawn by a stock passenger automobile or  when  

 

if drawn with a fifth wheel hitch mounted on a motor vehicle, and

 

that is primarily designed, constructed, and used to provide

 

temporary living quarters for recreational camping or travel.

 

     (b)  A camping trailer is  "Camping trailer" means a vehicular

 

portable temporary living quarters used for recreational camping or

 

travel  and of  that is a size and weight  as  that does not  to  

 

require special highway movement permits  when  if drawn by a motor

 

vehicle.

 

     Sec. 34c. (1) Not later than the first Monday in March in each

 

year, the assessor shall classify every item of assessable property

 

according to the definitions contained in this section. Following

 

the March board of review, the assessor shall tabulate the total

 

number of items and the valuations as approved by the board of

 

review for each classification and for the totals of real and

 

personal property in the local tax collecting unit. The assessor

 

shall transmit to the county equalization department and to the

 

state tax commission the tabulation of assessed valuations and

 

other statistical information the state tax commission considers

 

necessary to meet the requirements of this act and 1911 PA 44, MCL

 

209.1 to 209.8.

 

     (2) The classifications of assessable real property are

 

described as follows:

 

     (a) Agricultural real property includes parcels used partially

 

or wholly for agricultural operations, with or without buildings,

 

and parcels assessed to the department of natural resources and

 


valued by the state tax commission. For taxes levied after December

 

31, 2002, agricultural real property includes buildings on leased

 

land used for agricultural operations. As used in this subdivision,

 

"agricultural operations" means the following:

 

     (i) Farming in all its branches, including cultivating soil.

 

     (ii) Growing and harvesting any agricultural, horticultural, or

 

floricultural commodity.

 

     (iii) Dairying.

 

     (iv) Raising livestock, bees, fish, fur-bearing animals, or

 

poultry.

 

     (v) Turf and tree farming.

 

     (vi) Performing any practices on a farm incident to, or in

 

conjunction with, farming operations. A commercial storage,

 

processing, distribution, marketing, or shipping operation is not

 

part of agricultural operations.

 

     (b) Commercial real property includes the following:

 

     (i) Platted or unplatted parcels used for commercial purposes,

 

whether wholesale, retail, or service, with or without buildings.

 

     (ii) Parcels used by fraternal societies.

 

     (iii) Parcels used as golf courses, boat clubs, ski areas, or

 

apartment buildings with more than 4 units.

 

     (iv) For taxes levied after December 31, 2002, buildings on

 

leased land used for commercial purposes.

 

     (c) Developmental real property includes parcels containing

 

more than 5 acres without buildings, or more than 15 acres with a

 

market value in excess of its value in use. Developmental real

 

property may include farm land or open space land adjacent to a

 


population center, or farm land subject to several competing

 

valuation influences.

 

     (d) Industrial real property includes the following:

 

     (i) Platted or unplatted parcels used for manufacturing and

 

processing purposes, with or without buildings.

 

     (ii) Parcels used for utilities sites for generating plants,

 

pumping stations, switches, substations, compressing stations,

 

warehouses, rights-of-way, flowage land, and storage areas.

 

     (iii) Parcels used for removal or processing of gravel, stone,

 

or mineral ores, whether valued by the local assessor or by the

 

state geologist.

 

     (iv) For taxes levied after December 31, 2002, buildings on

 

leased land used for industrial purposes.

 

     (v) For taxes levied after December 31, 2002, buildings on

 

leased land for utility purposes.

 

     (e) Residential real property includes the following:

 

     (i) Platted or unplatted parcels, with or without buildings,

 

and condominium apartments located within or outside a village or

 

city, which are used for, or probably will be used for, residential

 

purposes.

 

     (ii) Parcels that are used for, or probably will be used for,

 

recreational purposes, such as lake lots and hunting lands, located

 

in an area used predominantly for recreational purposes.

 

     (iii) For taxes levied after December 31, 2002, a home, cottage,

 

or cabin on leased land, and a mobile home that would be assessable

 

as real property under section 2a except that the land on which it

 

is located is not assessable because the land is exempt. lands,

 


located in an area used predominantly for recreational purposes.

 

     (iv) For taxes levied after December 31, 2004, a mobile home on

 

a platted or unplatted parcel or on leased land, which is used for,

 

or probably will be used for, residential purposes.

 

     (f) Timber-cutover real property includes parcels that are

 

stocked with forest products of merchantable type and size, cutover

 

forest land with little or no merchantable products, and marsh

 

lands or other barren land. However, when a typical purchase of

 

this type of land is for residential or recreational uses, the

 

classification shall be changed to residential.

 

     (3) The classifications of assessable personal property are

 

described as follows:

 

     (a) Agricultural personal property includes any agricultural

 

equipment and produce not exempt by law.

 

     (b) Commercial personal property includes the following:

 

     (i) All equipment, furniture, and fixtures on commercial

 

parcels, and inventories not exempt by law.

 

     (ii) All outdoor advertising signs and billboards.

 

     (iii) Well drilling rigs and other equipment attached to a

 

transporting vehicle but not designed for operation while the

 

vehicle is moving on the highway.

 

     (iv) Unlicensed commercial vehicles or commercial vehicles

 

licensed as special mobile equipment or by temporary permits.

 

     (c) Industrial personal property includes the following:

 

     (i) All machinery and equipment, furniture and fixtures, and

 

dies on industrial parcels, and inventories not exempt by law.

 

     (ii) Personal property of mining companies valued by the state

 


geologist.

 

     (d) For taxes levied before January 1, 2003, residential

 

personal property includes a home, cottage, or cabin on leased

 

land, and a mobile home that would be assessable as real property

 

under section 2a except that the land on which it is located is not

 

assessable because the land is exempt.

 

     (e) Utility personal property includes the following:

 

     (i) Electric transmission and distribution systems, substation

 

equipment, spare parts, gas distribution systems, and water

 

transmission and distribution systems.

 

     (ii) Oil wells and allied equipment such as tanks, gathering

 

lines, field pump units, and buildings.

 

     (iii) Inventories not exempt by law.

 

     (iv) Gas wells with allied equipment and gathering lines.

 

     (v) Oil or gas field equipment stored in the open or in

 

warehouses such as drilling rigs, motors, pipes, and parts.

 

     (vi) Gas storage equipment.

 

     (vii) Transmission lines of gas or oil transporting companies.

 

     (4) For taxes levied before January 1, 2003, buildings on

 

leased land of any classification are improvements where the owner

 

of the improvement is not the owner of the land or fee, the value

 

of the land is not assessed to the owner of the building, and the

 

improvement has been assessed as personal property pursuant to

 

section 14(6).

 

     (5) If the total usage of a parcel includes more than 1

 

classification, the assessor shall determine the classification

 

that most significantly influences the total valuation of the

 


parcel.

 

     (6) An owner of any assessable property who disputes the

 

classification of that parcel shall notify the assessor and may

 

protest the assigned classification to the March board of review.

 

An owner or assessor may appeal the decision of the March board of

 

review by filing a petition with the state tax commission not later

 

than June 30 in that tax year. The state tax commission shall

 

arbitrate the petition based on the written petition and the

 

written recommendations of the assessor and the state tax

 

commission staff. An appeal may not be taken from the decision of

 

the state tax commission regarding classification complaint

 

petitions and the state tax commission's determination is final and

 

binding for the year of the petition.

 

     (7) The department of treasury may appeal the classification

 

of any assessable property to the residential and small claims

 

division of the Michigan tax tribunal not later than December 31 in

 

the tax year for which the classification is appealed.

 

     (8) This section shall not be construed to encourage the

 

assessment of property at other than the uniform percentage of true

 

cash value prescribed by this act.

 

     Enacting section 1.  1959 PA 243, MCL 125.1035 to 125.1043, is

 

repealed effective January 1, 2005.