HB-4668, As Passed House, February 9, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 4668

A bill to amend 1897 PA 230, entitled

"An act to provide for the formation of corporations for the

purpose of owning, maintaining and improving lands and other

property kept for the purposes of summer resorts or for ornament,

recreation or amusement, and to repeal all laws or parts of laws in

conflict herewith; and to impose certain duties on the department

of commerce,"

(MCL 455.1 to 455.24) by adding section 16a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 16a. (1) Beginning January 1, 2012, if a corporation

subject to this act has real property that has been platted under

section 20 and lots in that plat have been leased to stockholders

under section 21, all of the taxable and assessed values of the

corporation's real property within that plat shall be allocated to

the stockholder lessees so that each stockholder lessee is fairly

assessed for all of the following:

(a) The real property each stockholder lessee leases from the

corporation.

(b) Any of the corporation's real property improvements that

are within the plat and are available for the common and exclusive

use of the corporation's stockholder lessees, including guests of

the stockholder lessees.

(2) A corporation may propose to the assessor of the local tax

collecting district in which the property is located the percentage

the assessor should use to allocate the taxable and assessed values

of the corporation's property within the plat to the property that

the stockholder lessees lease from the corporation. The percentage

of allocation that the corporation may propose shall meet all of

the following requirements:

(a) The total allocation shall equal 100%.

(b) The allocation shall be the same as, or calculated using

the same methodology as, the corporation used in the immediately

preceding tax year to allocate the corporation's real property

taxes to the corporation's stockholders for payment to the

corporation, if the corporation made such an allocation.

(3) If the assessor allocates taxable and assessed values as

proposed under subsection (2), that allocation is presumed to be a

fair assessment of the allocated taxable and assessed values. If a

stockholder lessee appeals that allocation, that stockholder lessee

has the burden of proof to establish by clear and convincing

evidence that the taxable and assessed values allocated by the

assessor violate this section.

(4) If the taxable and assessed values of a corporation's real

property are allocated to the corporation's stockholder lessees

under this section, all of the following apply to any real property

within the plat that is owned by the corporation and that is

available for the common and exclusive use of the stockholder

lessees in any subsequent tax year:

(a) The taxable and assessed values are zero, because the

value of that real property is included in the assessment of the

real property leased by the stockholder lessees.

(b) If a stockholder lessee assigns a lease of the

corporation's real property and transfers the related corporation

stock, the value of the property subject to that lease is deemed to

be included in the price paid for a transfer of the real property

interests of a stockholder lessee. The purchase price paid for an

assignment and transfer as described under this subdivision is not

the presumptive true cash value of the property transferred as

provided in section 27(5) of the general property tax act, 1893 PA

206, MCL 211.27.

(5) If a stockholder lessee assigns a lease of the

corporation's real property and transfers the related corporation

stock, a property transfer affidavit shall be filed as provided in

section 27a(10) of the general property tax act, 1893 PA 206, MCL

211.27a.

(6) As provided under section 27a of the general property tax

act, 1893 PA 206, MCL 211.27a, an assessment roll change or tax

roll change resulting from the application of this section is not a

transfer of ownership.