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.