April 22, 2009, Introduced by Reps. Meltzer, Lund, Lori, Calley and Genetski 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 211.155) by adding section 7pp.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7pp. (1) If the ownership of an eligible principal
residence is transferred to a qualified purchaser and the taxable
value of the eligible principal residence is adjusted under section
27a(3), the increase in the eligible principal residence's taxable
value is exempt from the collection of taxes under this act until
there is a subsequent transfer of ownership of the eligible
principal residence.
(2) Upon the transfer of ownership of an eligible principal
residence subject to the exemption under subsection (1), the
taxable value of the eligible principal residence shall be adjusted
pursuant to section 27a(3).
(3) As used in this section:
(a) "Eligible principal residence" means a principal residence
located in the same county in which a qualified purchaser had
previously claimed a principal residence, which principal residence
exemption was rescinded under section 7cc(5) upon the purchase of
the eligible principal residence.
(b) "Federal poverty level" means the poverty guidelines
published annually in the federal register by the United States
department of health and human services under its authority to
revise the poverty line under section 673(2) of subtitle B of title
VI of the omnibus budget reconciliation act of 1981, Public Law 97-
35, 42 USC 9902.
(c) "Household income" means that term as defined in section
508 of the income tax act of 1967, 1967 PA 281, MCL 206.508.
(d) "Principal residence" means property subject to a
principal residence exemption.
(e) "Principal residence exemption" means the exemption from
the collection of taxes levied under section 1211 of the revised
school code, 1976 PA 451, MCL 380.1211, provided under section 7cc.
(f) "Qualified purchaser" means a person who meets all of the
following conditions:
(i) Claimed a principal residence exemption under section 7cc
for property located in the same county in which his or her
eligible principal residence is located for not less than 3 years
and rescinded that principal residence exemption pursuant to
section 7cc(5) upon the purchase of his or her eligible principal
residence.
(ii) Claimed a principal residence exemption for his or her
eligible principal residence as provided in section 7cc.
(iii) Has not previously claimed an exemption under this
section.
(iv) Has household income of less than 3 times the federal
poverty level.
(g) "Transfer of ownership" means that term as defined in
section 27a.