HB-4302, As Passed House, February 22, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 4302

     A bill to amend 2006 PA 379, entitled

"Qualified forest property recapture tax act,"

by amending section 4 (MCL 211.1034).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 4. The recapture tax under this act shall be imposed at

the following rate:

     (a) If the property is converted by a change in use and there

have not been 1 or more harvests of forest products on that

property consistent with the approved forest management plan, the

recapture tax shall be calculated in the following manner:

     (i) Multiply the property's state equalized valuation taxable

value at the time the property is converted by a change in use by

the total millage rate levied by all taxing units in the local tax

collecting unit in which the property is located the number of

operating mills levied by the local school district in which the

property is located under section 1211 of the revised school code,

1976 PA 451, MCL 380.1211.

     (ii) Multiply the product of the calculation under subparagraph

(i) by 7.the sum of the number of years the property had been exempt

as qualified forest property under section 7jj of the general

property tax act, 1893 PA 206, MCL 211.7jj[1], before the property

was converted by a change in use and, if applicable, the number of

years the property had been exempt as a commercial forest under

section 51105 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.51105, not to exceed the 7 years

immediately preceding the year in which the qualified forest

property is converted by a change in use.

     (iii) Multiply the product of the calculation under subparagraph

(ii) by 2.

     (b) If the property is converted by a change in use and there

have been 1 or more harvests of forest products on that property

consistent with the approved forest management plan, the recapture

tax shall be calculated in the following manner:

     (i) Multiply the property's state equalized valuation taxable

value at the time the property is converted by a change in use by

the total millage rate levied by all taxing units in the local tax

collecting unit in which the property is located the number of

operating mills levied by the local school district in which the

property is located under section 1211 of the revised school code,

1976 PA 451, MCL 380.1211.

     (ii) Multiply the product of the calculation under subparagraph

(i) by 7.the sum of the number of years the property had been exempt

as qualified forest property under section 7jj of the general

property tax act, 1893 PA 206, MCL 211.7jj[1], before the property

was converted by a change in use and, if applicable, the number of

years the property had been exempt as a commercial forest under

section 51105 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.51105, not to exceed the 7 years

immediately preceding the year in which the qualified forest

property is converted by a change in use.

     (c) In addition to the recapture tax calculated under

subdivision (a) or (b), if property is converted by a change in use

and the taxable value of the property was not adjusted under

section 27a(3) of the general property tax act, 1893 PA 206, MCL

211.27a, after a transfer of ownership of the property due to the

provisions of section 27a(7)(o) of the general property tax act,

1893 PA 206, MCL 211.27a, the recapture tax shall include the

benefit received on that property.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 96th Legislature are

enacted into law:

     (a) House Bill No. 4969.

     (b) House Bill No. 4970.