SENATE BILL No. 979

December 6, 2007, Introduced by Senators HARDIMAN, ALLEN, SANBORN, KUIPERS, GILBERT, RICHARDVILLE, BIRKHOLZ, HUNTER, STAMAS, BROWN, KAHN, GEORGE, CLARKE, CLARK-COLEMAN, PAPPAGEORGE, BARCIA, JACOBS, THOMAS and SCOTT and referred to the Committee on Commerce and Tourism.

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

(MCL 211.1 to 211.155) by adding section 7ll.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 7ll. (1) The governing body of a local tax collecting unit

may adopt a resolution to exempt from the collection of taxes under

this act all new construction on eligible development property

located in an eligible district designated in the resolution. The

clerk of the local tax collecting unit shall notify in writing the

assessor of the local tax collecting unit in which the eligible

district is located and the legislative body of each taxing unit

that levies ad valorem property taxes in the local tax collecting

unit in which the eligible district is located. Before acting on

the resolution, the governing body of the local tax collecting unit

shall afford the assessor and a representative of the affected

taxing units an opportunity for a hearing.

(2) After adoption of a resolution under subsection (1), an

owner of eligible development property located in an eligible

district may claim an exemption under this section by filing an

affidavit claiming the exemption with the local tax collecting unit

by May 1. The affidavit shall be on a form prescribed by the

department of treasury.

(3) Upon receipt of an affidavit filed under subsection (2),

the assessor shall determine if the real property on which new

construction is located is eligible development property and is

located in an eligible district. If the real property is eligible

development property and is located in an eligible district, the

assessor shall exempt the new construction located on that eligible

development property from the collection of taxes under this act.

(4) Not more than 90 days after all or a portion of the

exempted new construction is no longer located on eligible

development property, an owner shall rescind the exemption for the

new construction by filing with the local tax collecting unit a

rescission form. The rescission form shall be as prescribed by the

department of treasury.

(5) An owner of exempted new construction that is no longer

located on eligible development property who fails to file a

rescission form as required under subsection (4) is subject to a

penalty of $5.00 per day for each separate failure beginning after

the 90 days have elapsed, up to a maximum of $200.00. This penalty

shall be collected under 1941 PA 122, MCL 205.1 to 205.31, and

shall be deposited in the state school aid fund established in

section 11 of article IX of the state constitution of 1963. This

penalty may be waived by the department of treasury.

(6) An owner of new construction that is located on eligible

development property that is located in an eligible district on May

1 for which an exemption was not on the tax roll may file an appeal

with the July or December board of review in the year the exemption

was claimed or the immediately succeeding year. An owner of new

construction that is located on eligible development property that

is located in an eligible district on May 1 for which an exemption

was denied by the assessor in the year the affidavit was filed may

file an appeal with the July board of review for summer taxes or,

if there is not a summer levy of school operating taxes, with the

December board of review.

(7) If the assessor of the local tax collecting unit believes

that new construction for which an exemption has been granted is

not located on eligible development property or is not located in

an eligible district, the assessor may deny or modify an existing

exemption by notifying the owner in writing at the time required

for providing a notice under section 24c. A taxpayer may appeal the

assessor's determination to the board of review meeting under

section 30. A decision of the board of review may be appealed to

the residential and small claims division of the Michigan tax

tribunal.

(8) If an exemption under this section is erroneously granted,

an owner may request in writing that the local tax collecting unit

withdraw the exemption. If an owner requests that an exemption be

withdrawn, the local assessor shall notify the owner that the

exemption issued under this section has been denied based on that

owner's request. If an exemption is withdrawn, the eligible new

construction that had been subject to that exemption shall be

immediately placed on the tax roll by the local tax collecting unit

if the local tax collecting unit has possession of the tax roll or

by the county treasurer if the county has possession of the tax

roll as though the exemption had not been granted. A corrected tax

bill shall be issued for the tax year being adjusted by the local

tax collecting unit if the local tax collecting unit has possession

of the tax roll or by the county treasurer if the county has

possession of the tax roll. If an owner requests that an exemption

under this section be withdrawn before that owner is contacted in

writing by the local assessor regarding that owner's eligibility

for the exemption and that owner pays the corrected tax bill issued

under this subsection within 30 days after the corrected tax bill

is issued, that owner is not liable for any penalty or interest on

the additional tax. An owner who pays a corrected tax bill issued

under this subsection more than 30 days after the corrected tax

bill is issued is liable for the penalties and interest that would

have accrued if the exemption had not been granted from the date

the taxes were originally levied.

(9) As used in this section:

(a) "Eligible development property" means real property on

which a condominium unit or apartment building with more than 4

units is located, which condominium unit or apartment building is