March 29, 2012, Introduced by Senators BOOHER, GREEN, BRANDENBURG and CASPERSON and referred to the Committee on Natural Resources, Environment and Great Lakes.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending sections 7jj and 27a (MCL 211.7jj[1] and 211.27a),
section 7jj as added by 2006 PA 378 and section 27a as amended by
2012 PA 47.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7jj. (1) Except as otherwise limited in this subsection,
qualified forest property is exempt from the tax levied by a local
school district for school operating purposes to the extent
provided under section 1211 of the revised school code, 1976 PA
451, MCL 380.1211, according to the provisions of this section. If
a property owner is interested in obtaining an exemption for
qualified forest property under this section, the property owner
may contact the department and the department shall advise the
property owner on the exemption process. If requested by the
property owner, the department shall provide the property owner
with a list of qualified foresters to prepare a forest management
plan. The amount of qualified forest property in this state that is
eligible for the exemption under this section is limited as
follows:
(a) In the fiscal year ending September 30, 2008, 300,000
acres.
(b) In the fiscal year ending September 30, 2009, 600,000
acres.
(c) In the fiscal year ending September 30, 2010, 900,000
acres.
(d) In the fiscal year ending September 30, 2011 and each
fiscal year thereafter, 1,200,000 acres.
(2) To claim an exemption under subsection (1), a property
owner shall obtain a forest management plan from a qualified
forester and submit that forest management plan and an application
for exemption as qualified forest property to a conservation
district on a form created by the department. A forest management
plan is not subject to the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246. A conservation district shall verify
implementation of the forest management with an owner of that
property and shall review with that property owner the application
for exemption as qualified forest property under this section.
Verification may include an on-site review or off-site
communication and review of aerial imagery. If the conservation
district verifies implementation of the forest management plan and
the property's eligibility for exemption as qualified forest
property under this section, a designee of the conservation
district shall provide a signed verification form to the landowner,
which form shall include the legal description of the property
eligible for exemption as qualified forest property.
(3) (2)
To claim an exemption under
subsection (1), the owner
of qualified forest property shall file an affidavit claiming the
exemption
and an approved forest management plan or a certificate
provided
by a third-party certifying organization the form provided
by the conservation district under subsection (2), verifying that
the property meets the qualifications of the program, with the
local tax collecting unit and the department by December 31. The
owner of qualified forest property shall also submit a fee of
$200.00 to the department. An owner may claim an exemption under
this
section for not more than 320 640
acres of qualified forest
property in each local tax collecting unit. If an exemption is
granted
under this section for less than 320 640 acres in a local
tax collecting unit, an owner of that property may subsequently
claim an exemption for additional property in that local tax
collecting unit if that additional property meets the requirements
of this section.
(4) (3)
The affidavit shall be on a form
prescribed by the
department of treasury and shall require the person submitting the
affidavit to attest that the property for which the exemption is
claimed is qualified forest property and will be managed according
to the approved forest management plan.
(5) (4)
The If an affidavit and form
provided by the
conservation district under subsection (2) are provided by the
owner,
the assessor shall determine if the
property is qualified
forest
property based on a recommendation from the department of
natural
resources and confirmation that the acreage limitation set
forth
in subsection (1) has not been reached and if so shall exempt
the property from the collection of the tax as provided in
subsection (1) until December 31 of the year in which the property
is no longer qualified forest property. If property is exempt under
this section, the owner shall file a receipt of that exemption with
the register of deeds of the county in which the property is
located on a form provided by the department. The owner shall send
a copy of the recorded receipt to the assessor of the local tax
collecting unit in which the property is located and to the
department. Property on which a building for human residence is
located, including the septic system for a building for human
residence, is not eligible for an exemption as qualified forest
property under this section. If a building other than a building
for human residence is located on that property, the property is
eligible for the exemption under this section as qualified forest
property, but the building or other structure shall not be included
in the exemption under this section.
(6) (5)
Not more than 90 days after all or
a portion of the
exempted property is no longer qualified forest property, the owner
shall rescind the exemption for the applicable portion of the
property
by filing with the local tax collecting unit register of
deeds for the county in which the exempted property is located a
rescission form prescribed by the department of treasury. The
rescission form shall include a legal description of the exempted
property. An owner who fails to file a rescission as required by
this subsection 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 $1,000.00. This penalty shall be collected under 1941 PA
122, MCL 205.1 to 205.31, and shall be deposited in the general
fund of this state.
(7) (6)
An owner of property that is
qualified forest property
on December 31 for which an exemption was not on the tax roll may
file an appeal with the July or December board of review under
section 53b in the year the exemption was claimed or the
immediately succeeding year. An owner of property that is qualified
forest property 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 under section 53b.
(7)
If the assessor of the local tax collecting unit believes
that
the property for which an exemption has been granted is not
qualified
forest property based on a recommendation from the
department
of natural resources, 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 property for which an exemption has been granted under
this section is not qualified forest property, the property 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 each 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.
(9) If all or a portion of property for which an exemption has
been granted under this section is converted by a change in use and
is
no longer qualified forest property, the property is subject to
the
qualified forest property recapture tax levied an owner shall
immediately notify the local tax collecting unit, the department,
and the department of treasury on a form created by the department.
The form shall include a legal description of the exempted
property. A copy of the form shall be filed with the register of
deeds for the county in which the exempted property is located.
Upon notice that property is no longer qualified forest property,
the local tax collecting unit shall immediately rescind the
exemption under this section and shall place the property on the
tax roll for the immediately succeeding tax year and the department
of treasury shall immediately begin collection of any applicable
tax and penalty under this act or under the qualified forest
property recapture tax act, 2006 PA 379, MCL 211.1031 to 211.1036.
An owner of qualified forest property shall inform a prospective
buyer of that qualified forest property that the qualified forest
property is subject to the recapture tax provided in the qualified
forest property recapture tax act, 2006 PA 379, MCL 211.1031 to
211.1036, if the qualified forest property is converted by a change
in use.
(10) If qualified forest property is exempt under this
section,
an owner of that qualified forest property shall annually
report
every 10 years to the department of natural resources
conservation
district on a form prescribed by the
department of
natural
resources the amount of timber
produced on that qualified
forest property and whether any buildings or structures have been
constructed on the qualified forest property. An owner shall
provide the report required under this subsection even if no timber
has been harvested. A copy of the report shall be retained by the
department for 7 years. Beginning in 2008, and every 3 years
thereafter,
the department of natural resources shall provide to
the standing committees of the senate and house of representatives
with primary jurisdiction over forestry issues a report that
includes all of the following:
(a) The number of acres of qualified forest property in each
county.
(b) The amount of timber produced on qualified forest property
each year.
(11) While qualified forest property is exempt under this
section, the owner shall retain the current management plan, most
recent harvest records, recorded copy of a receipt of the tax
exemption, and a map that shows the location and size of any
buildings and structures on the property, together with a
description of all characteristics of those buildings or structures
as described in subsection (12)(b). The owner shall make the
documents available to the department upon request.
(12) (11)
As used in this section:
(a)
"Approved forest management plan" means 1 of the
following:
(i) A a
forest management plan approved by
the department of
natural
resources. developed by a
qualified forester. An owner of
property
may shall submit a proposed forest management plan to
the
department
of natural resources conservation
district for approval
as
prescribed in subsection (2). The proposed
forest management
plan shall include a statement signed by the owner that he or she
agrees to comply with all terms and conditions contained in the
approved
forest management plan. The department of natural
resources
may charge a fee of not more than $200.00 for the
consideration
of each proposed forest management plan submitted.
The
department of natural resources shall review and either approve
or
disapprove each proposed forest management plan submitted. If a
forest management plan and application are submitted to the
conservation district, the conservation district shall review and
either approve or disapprove the owner's application within 30 days
of
submission. If the department of
natural resources conservation
district
disapproves a proposed forest
management plan, the
department
of natural resources conservation
district shall
indicate
the changes necessary to qualify the proposed forest
management
plan for approval on subsequent review. At the request
of
the owner submitting a proposed forest management plan, the
department
of natural resources may agree to complete a proposed
forest
management plan. An owner and the
department of natural
resources
may mutually agree to amend a proposed
forest management
plan or an approved forest management plan. A forest management
plan
submitted to the department of natural resources for approval
shall
not extend beyond a period of 20 years. An To continue
receiving
an exemption under this section, an
owner of property may
shall submit a succeeding proposed forest management plan to the
department
of natural resources for approval.
(ii) A forest management plan certified by a
third-party
certifying
organization.
(b) "Building developed for human residence" means any
building that meets 5 or more of the following characteristics:
(i) Is 800 square feet or more in total area using exterior
dimensions of living space including each level, but excluding
porches, decks, or uninsulated screen porches.
(ii) Has indoor plumbing, including water and sewer piped to
either a municipal or septic system.
(iii) Has a full or partial basement.
(iv) Has electrical service by connection to the lines of a
power company.
(v) Has central heating or cooling, including electric, wood,
biofuel, or gas furnace or other heater with a circulation system.
(vi) Is insulated using products designed for that purpose.
(vii) Has telephone service linked to a landline.
(viii) Has an attached or separate garage, not including
buildings for vehicles used primarily for work or recreation on the
property.
(c) "Conservation district" means a conservation district
organized under part 93 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.9301 to 324.9313.
(d) (b)
"Converted by a change in
use" means that term as
defined in section 2 of the qualified forest property recapture tax
act, 2006 PA 379, MCL 211.1032.
(e) "Department" means the department of agriculture and rural
development.
(f) "Forest management plan" means a written plan prepared and
signed by a qualified forester that prescribes measures to optimize
production, utilization, and regeneration of forest resources. The
forest management plan shall include a schedule and timetables for
the various silvicultural practices used on forestlands. A forest
management plan shall include all of the following:
(i) The name and address of each owner of the property.
(ii) The legal description and parcel identification number of
the property or of the parcel on which the property is located.
(iii) A statement of the owner's forest management objectives.
(iv) A map, diagram, or aerial photograph that identifies both
forested and unforested areas of the property, using conventional
map symbols indicating the species, size, and stocking rate and
other major features of the property, including the location of any
buildings. The location of any buildings can be established on a
map created by a qualified forester and does not require a survey
by a registered surveyor.
(v) A description of the forestry practices, including
harvesting, thinning, and reforestation, that will be undertaken,
specifying the approximate period of time before each is completed.
(vi) A description of soil conservation practices that may be
necessary to control any soil erosion that may result from the
forestry practices described pursuant to subparagraph (v).
(vii) A description of activities that may be undertaken for
the management of forest resources other than trees, including
wildlife habitat, watersheds, and aesthetic features.
(g) (c)
"Forest
products" includes, but is not limited to,
timber and pulpwood-related products.
(h) (d)
"Natural resources
professional" and "registered
forester" mean those terms as defined in section 51101 of the
natural resources and environmental protection act, 1994 PA 451,
MCL 324.51101.
(e)
"Proposed forest management plan" means a proposed plan
for
sustainable forest management that includes, but is not limited
to,
harvesting, planting, and regeneration of forest products on a
parcel
of property that is prepared by a qualified forester. A
proposed
forest management plan shall include all of the following:
(i) The name and address of each owner of the
property.
(ii) The legal description and parcel identification
number of
the
property or of the parcel on which the property is located.
(iii) A statement of the owner's forest management
objectives.
(iv) A map, diagram, or aerial photograph that
identified both
forested
and unforested areas of the property, using conventional
map
symbols indicating the species, size, and density of vegetation
and
other major features of the property.
(v) A description of the forestry practices, including
harvesting,
thinning, and reforestation, that will be undertaken,
specifying
the approximate period of time before each is completed.
(vi) A description of soil conservation practices that
may be
necessary
to control any soil erosion that may result from the
forestry
practices described pursuant to subparagraph (v).
(vii) A proposed forest management plan shall also
include a
description
of activities that may be undertaken for the management
of
forest resources other than trees, including wildlife habitat,
watersheds,
and aesthetic features.
(i) (f)
"Qualified forest
property" means a parcel of real
property that meets all of the following conditions as determined
by
the department of natural resources:agriculture and rural
development:
(i) Is not less than 20 10 contiguous
acres in size, of which
not less than 80% is productive forest capable of producing wood
products. Contiguity is not broken by a road, a right-of-way, or
property purchased or taken under condemnation proceedings by a
public utility for power transmission lines if the 2 parcels
separated by the purchased or condemned property were a single
parcel prior to the sale or condemnation. As used in this
subparagraph, "productive forest" means real property capable of
growing not less than 20 cubic feet of wood per acre per year.
However, if property has been considered productive forest, an act
of God that negatively affects that property shall not result in
that property not being considered productive forest.
(ii) Is stocked with forest products.
(ii) (iii) Has no
buildings or structures building
developed for
human residence located on the real property.
(iii) (iv) Is
subject to an approved forest management plan.
(iv) For a parcel exempt as qualified agricultural property
under section 7ee, the qualified forest portion of the parcel shall
be not less than 10 contiguous acres of which not less than 50% is
productive forest capable of producing forest products.
(j) (g)
"Qualified forester"
means natural resources
professional,
a registered forester, or a
conservation district
forester.a forester certified by the society of
American foresters,
a forest stewardship plan writer, or a technical service provider
as registered by the United States department of agriculture for
forest management plan development.
(k) (h)
"Third-party certifying
organization" means an
independent third-party organization that assesses and evaluates
forest management practices according to the standards of a
certification program that measures whether forest management
practices are consistent with principles of sustainable forestry.
Third-party certifying organization includes, but is not limited
to, the forest stewardship council and the sustainable forest
initiative.
Sec. 27a. (1) Except as otherwise provided in this section,
property shall be assessed at 50% of its true cash value under
section 3 of article IX of the state constitution of 1963.
(2) Except as otherwise provided in subsection (3), for taxes
levied in 1995 and for each year after 1995, the taxable value of
each parcel of property is the lesser of the following:
(a) The property's taxable value in the immediately preceding
year minus any losses, multiplied by the lesser of 1.05 or the
inflation rate, plus all additions. For taxes levied in 1995, the
property's taxable value in the immediately preceding year is the
property's state equalized valuation in 1994.
(b) The property's current state equalized valuation.
(3) Upon a transfer of ownership of property after 1994, the
property's taxable value for the calendar year following the year
of the transfer is the property's state equalized valuation for the
calendar year following the transfer.
(4) If the taxable value of property is adjusted under
subsection (3), a subsequent increase in the property's taxable
value is subject to the limitation set forth in subsection (2)
until a subsequent transfer of ownership occurs. If the taxable
value of property is adjusted under subsection (3) and the assessor
determines that there had not been a transfer of ownership, the
taxable value of the property shall be adjusted at the July or
December board of review. Notwithstanding the limitation provided
in section 53b(1) on the number of years for which a correction may
be made, the July or December board of review may adjust the
taxable value of property under this subsection for the current
year and for the 3 immediately preceding calendar years. A
corrected tax bill shall be issued for each tax year for which the
taxable value is 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. For
purposes of section 53b, an adjustment under this subsection shall
be considered the correction of a clerical error.
(5) Assessment of property, as required in this section and
section 27, is inapplicable to the assessment of property subject
to the levy of ad valorem taxes within voted tax limitation
increases to pay principal and interest on limited tax bonds issued
by any governmental unit, including a county, township, community
college district, or school district, before January 1, 1964, if
the assessment required to be made under this act would be less
than the assessment as state equalized prevailing on the property
at the time of the issuance of the bonds. This inapplicability
shall continue until levy of taxes to pay principal and interest on
the bonds is no longer required. The assessment of property
required by this act shall be applicable for all other purposes.
(6) As used in this act, "transfer of ownership" means the
conveyance of title to or a present interest in property, including
the beneficial use of the property, the value of which is
substantially equal to the value of the fee interest. Transfer of
ownership of property includes, but is not limited to, the
following:
(a) A conveyance by deed.
(b) A conveyance by land contract. The taxable value of
property conveyed by a land contract executed after December 31,
1994 shall be adjusted under subsection (3) for the calendar year
following the year in which the contract is entered into and shall
not be subsequently adjusted under subsection (3) when the deed
conveying title to the property is recorded in the office of the
register of deeds in the county in which the property is located.
(c) A conveyance to a trust after December 31, 1994, except if
the settlor or the settlor's spouse, or both, conveys the property
to the trust and the sole present beneficiary or beneficiaries are
the settlor or the settlor's spouse, or both.
(d) A conveyance by distribution from a trust, except if the
distributee is the sole present beneficiary or the spouse of the
sole present beneficiary, or both.
(e) A change in the sole present beneficiary or beneficiaries
of a trust, except a change that adds or substitutes the spouse of
the sole present beneficiary.
(f) A conveyance by distribution under a will or by intestate
succession, except if the distributee is the decedent's spouse.
(g) A conveyance by lease if the total duration of the lease,
including the initial term and all options for renewal, is more
than 35 years or the lease grants the lessee a bargain purchase
option. As used in this subdivision, "bargain purchase option"
means the right to purchase the property at the termination of the
lease for not more than 80% of the property's projected true cash
value at the termination of the lease. After December 31, 1994, the
taxable value of property conveyed by a lease with a total duration
of more than 35 years or with a bargain purchase option shall be
adjusted under subsection (3) for the calendar year following the
year in which the lease is entered into. This subdivision does not
apply to personal property except buildings described in section
14(6) and personal property described in section 8(h), (i), and
(j). This subdivision does not apply to that portion of the
property not subject to the leasehold interest conveyed.
(h) Except as otherwise provided in this subdivision, a
conveyance of an ownership interest in a corporation, partnership,
sole proprietorship, limited liability company, limited liability
partnership, or other legal entity if the ownership interest
conveyed is more than 50% of the corporation, partnership, sole
proprietorship, limited liability company, limited liability
partnership, or other legal entity. Unless notification is provided
under subsection (10), the corporation, partnership, sole
proprietorship, limited liability company, limited liability
partnership, or other legal entity shall notify the assessing
officer on a form provided by the state tax commission not more
than 45 days after a conveyance of an ownership interest that
constitutes a transfer of ownership under this subdivision. Both of
the following apply to a corporation subject to 1897 PA 230, MCL
455.1 to 455.24:
(i) A transfer of stock of the corporation is a transfer of
ownership only with respect to the real property that is assessed
to the transferor lessee stockholder.
(ii) A cumulative conveyance of more than 50% of the
corporation's stock does not constitute a transfer of ownership of
the corporation's real property.
(i) A transfer of property held as a tenancy in common, except
that portion of the property not subject to the ownership interest
conveyed.
(j) A conveyance of an ownership interest in a cooperative
housing corporation, except that portion of the property not
subject to the ownership interest conveyed.
(7) Transfer of ownership does not include the following:
(a) The transfer of property from 1 spouse to the other spouse
or from a decedent to a surviving spouse.
(b) A transfer from a husband, a wife, or a husband and wife
creating or disjoining a tenancy by the entireties in the grantors
or the grantor and his or her spouse.
(c) A transfer of that portion of property subject to a life
estate or life lease retained by the transferor, until expiration
or termination of the life estate or life lease. That portion of
property transferred that is not subject to a life lease shall be
adjusted under subsection (3).
(d) A transfer through foreclosure or forfeiture of a recorded
instrument under chapter 31, 32, or 57 of the revised judicature
act of 1961, 1961 PA 236, MCL 600.3101 to 600.3285 and MCL 600.5701
to 600.5759, or through deed or conveyance in lieu of a foreclosure
or forfeiture, until the mortgagee or land contract vendor
subsequently transfers the property. If a mortgagee does not
transfer the property within 1 year of the expiration of any
applicable redemption period, the property shall be adjusted under
subsection (3).
(e) A transfer by redemption by the person to whom taxes are
assessed of property previously sold for delinquent taxes.
(f) A conveyance to a trust if the settlor or the settlor's
spouse, or both, conveys the property to the trust and the sole
present beneficiary of the trust is the settlor or the settlor's
spouse, or both.
(g) A transfer pursuant to a judgment or order of a court of
record making or ordering a transfer, unless a specific monetary
consideration is specified or ordered by the court for the
transfer.
(h) A transfer creating or terminating a joint tenancy between
2 or more persons if at least 1 of the persons was an original
owner of the property before the joint tenancy was initially
created and, if the property is held as a joint tenancy at the time
of conveyance, at least 1 of the persons was a joint tenant when
the joint tenancy was initially created and that person has
remained a joint tenant since the joint tenancy was initially
created. A joint owner at the time of the last transfer of
ownership of the property is an original owner of the property. For
purposes of this subdivision, a person is an original owner of
property owned by that person's spouse.
(i) A transfer for security or an assignment or discharge of a
security interest.
(j) A transfer of real property or other ownership interests
among members of an affiliated group. As used in this subsection,
"affiliated group" means 1 or more corporations connected by stock
ownership to a common parent corporation. Upon request by the state
tax commission, a corporation shall furnish proof within 45 days
that a transfer meets the requirements of this subdivision. A
corporation that fails to comply with a request by the state tax
commission under this subdivision is subject to a fine of $200.00.
(k) Normal public trading of shares of stock or other
ownership interests that, over any period of time, cumulatively
represent more than 50% of the total ownership interest in a
corporation or other legal entity and are traded in multiple
transactions involving unrelated individuals, institutions, or
other legal entities.
(l) A transfer of real property or other ownership interests
among corporations, partnerships, limited liability companies,
limited liability partnerships, or other legal entities if the
entities involved are commonly controlled. Upon request by the
state tax commission, a corporation, partnership, limited liability
company, limited liability partnership, or other legal entity shall
furnish proof within 45 days that a transfer meets the requirements
of this subdivision. A corporation, partnership, limited liability
company, limited liability partnership, or other legal entity that
fails to comply with a request by the state tax commission under
this subdivision is subject to a fine of $200.00.
(m) A direct or indirect transfer of real property or other
ownership interests resulting from a transaction that qualifies as
a tax-free reorganization under section 368 of the internal revenue
code, 26 USC 368. Upon request by the state tax commission, a
property owner shall furnish proof within 45 days that a transfer
meets the requirements of this subdivision. A property owner who
fails to comply with a request by the state tax commission under
this subdivision is subject to a fine of $200.00.
(n) A transfer of qualified agricultural property, if the
person to whom the qualified agricultural property is transferred
files an affidavit with the assessor of the local tax collecting
unit in which the qualified agricultural property is located and
with the register of deeds for the county in which the qualified
agricultural property is located attesting that the qualified
agricultural property shall remain qualified agricultural property.
The affidavit under this subdivision shall be in a form prescribed
by the department of treasury. An owner of qualified agricultural
property shall inform a prospective buyer of that qualified
agricultural property that the qualified agricultural property is
subject to the recapture tax provided in the agricultural property
recapture act, 2000 PA 261, MCL 211.1001 to 211.1007, if the
qualified agricultural property is converted by a change in use. If
property ceases to be qualified agricultural property at any time
after being transferred, all of the following shall occur:
(i) The taxable value of that property shall be adjusted under
subsection (3) as of the December 31 in the year that the property
ceases to be qualified agricultural property.
(ii) The property is subject to the recapture tax provided for
under the agricultural property recapture act, 2000 PA 261, MCL
211.1001 to 211.1007.
(o) A transfer of qualified forest property, if the person to
whom the qualified forest property is transferred files an
affidavit with the assessor of the local tax collecting unit in
which the qualified forest property is located and with the
register of deeds for the county in which the qualified forest
property is located attesting that the qualified forest property
shall remain qualified forest property. The affidavit under this
subdivision shall be in a form prescribed by the department of
treasury.
agriculture and rural
development. The affidavit shall
include a legal description of the qualified forest property. One
copy of the affidavit shall be retained by the local tax collecting
unit, 1 copy shall be forwarded to the conservation district, 1
copy shall be forwarded to the department of treasury, and 1 copy
shall be forwarded to the department of agriculture and rural
development. An owner of qualified forest property shall inform a
prospective buyer of that qualified forest property that the
qualified forest property is subject to the recapture tax provided
in the qualified forest property recapture tax act, 2006 PA 379,
MCL 211.1031 to 211.1036, if the qualified forest property is
converted by a change in use. If property ceases to be qualified
forest property at any time after being transferred, all of the
following shall occur:
(i) The taxable value of that property shall be adjusted under
subsection (3) as of the December 31 in the year that the property
ceases to be qualified forest property.
(ii) The property is subject to the recapture tax provided for
under the qualified forest property recapture tax act, 2006 PA 379,
MCL 211.1031 to 211.1036.
(p) Beginning on the effective date of the amendatory act that
added this subdivision, a transfer of land, but not buildings or
structures located on the land, which meets 1 or more of the
following requirements:
(i) The land is subject to a conservation easement under
subpart 11 of part 21 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.2140 to 324.2144. As used in
this subparagraph, "conservation easement" means that term as
defined in section 2140 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.2140.
(ii) A transfer of ownership of the land or a transfer of an
interest in the land is eligible for a deduction as a qualified
conservation contribution under section 170(h) of the internal
revenue code, 26 USC 170.
(q) A transfer of real property or other ownership interests
resulting from a consolidation or merger of a domestic nonprofit
corporation that is a boy or girl scout or camp fire girls
organization, a 4-H club or foundation, a young men's Christian
association, or a young women's Christian association and at least
50% of the members of that organization or association are
residents of this state.
(r) A change to the assessment roll or tax roll resulting from
the application of section 16a of 1897 PA 230, MCL 455.16a.
(8) If all of the following conditions are satisfied, the
local tax collecting unit shall revise the taxable value of
qualified agricultural property taxable on the tax roll in the
possession of that local tax collecting unit to the taxable value
that qualified agricultural property would have had if there had
been no transfer of ownership of that qualified agricultural
property since December 31, 1999 and there had been no adjustment
of that qualified agricultural property's taxable value under
subsection (3) since December 31, 1999:
(a) The qualified agricultural property was qualified
agricultural property for taxes levied in 1999 and each year after
1999.
(b) The owner of the qualified agricultural property files an
affidavit with the assessor of the local tax collecting unit under
subsection (7)(n).
(9) If the taxable value of qualified agricultural property is
adjusted under subsection (8), the owner of that qualified
agricultural property shall not be entitled to a refund for any
property taxes collected under this act on that qualified
agricultural property before the adjustment under subsection (8).
(10) The register of deeds of the county where deeds or other
title documents are recorded shall notify the assessing officer of
the appropriate local taxing unit not less than once each month of
any recorded transaction involving the ownership of property and
shall make any recorded deeds or other title documents available to
that county's tax or equalization department. Unless notification
is provided under subsection (6), the buyer, grantee, or other
transferee of the property shall notify the appropriate assessing
office in the local unit of government in which the property is
located of the transfer of ownership of the property within 45 days
of the transfer of ownership, on a form prescribed by the state tax
commission that states the parties to the transfer, the date of the
transfer, the actual consideration for the transfer, and the
property's parcel identification number or legal description. Forms
filed in the assessing office of a local unit of government under
this subsection shall be made available to the county tax or
equalization department for the county in which that local unit of
government is located. This subsection does not apply to personal
property except buildings described in section 14(6) and personal
property described in section 8(h), (i), and (j).
(11) As used in this section:
(a) "Additions" means that term as defined in section 34d.
(b) "Beneficial use" means the right to possession, use, and
enjoyment of property, limited only by encumbrances, easements, and
restrictions of record.
(c) "Converted by a change in use" means that term as defined
in the agricultural property recapture act, 2000 PA 261, MCL
211.1001 to 211.1007.
(d) "Inflation rate" means that term as defined in section
34d.
(e) "Losses" means that term as defined in section 34d.
(f) "Qualified agricultural property" means that term as
defined in section 7dd.
(g) "Qualified forest property" means that term as defined in
section 7jj[1].