February 10, 2011, Introduced by Reps. Zorn, Kurtz, Somerville, Jenkins, MacMaster, Johnson, Ouimet, Daley, Scott, Opsommer, Rendon, Durhal, Lund, Huuki and Olumba and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 7kk (MCL 211.7kk), as added by 2006 PA 612.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
7kk. (1) The governing body of a local tax collecting
unit
may adopt a resolution to exempt from the collection of taxes
under
this act eligible Eligible nonprofit housing property is
exempt from the collection of taxes under this act as provided in
this
section. The clerk of the local tax
collecting unit shall
notify
in writing the assessor of the local tax collecting unit and
the
legislative body of each taxing unit that levies ad valorem
property
taxes in the local tax collecting unit. 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) The exemption under this section is effective on the
December
31 immediately succeeding the adoption of the resolution
by
the governing body of the local tax collecting unit or the
issuance of a building permit for the eligible nonprofit housing
property. ,
whichever is later. The exemption
under this section
shall continue in effect for 2 years, until the eligible nonprofit
housing property is occupied by a low-income person under a lease
agreement, or until there is a transfer of ownership of the
eligible
nonprofit housing property, whichever occurs first. A copy
of
the resolution shall be filed with the state tax commission.
(3) As used in this section:
(a) "Charitable nonprofit housing organization" means a
charitable nonprofit organization the primary purpose of which is
the construction or renovation of residential housing for
conveyance to a low-income person.
(b) "Eligible nonprofit housing property" means a single
family dwelling or duplex owned by a charitable nonprofit housing
organization, the ownership of which the charitable nonprofit
housing organization intends to transfer to a low-income person
after construction or renovation of the single family dwelling or
duplex is completed to be used as that low-income person's
principal residence.
(c) "Family income" and "statewide median gross income" mean
those terms as defined in section 11 of the state housing
development authority act of 1966, 1966 PA 346, MCL 125.1411.
(d) "Low-income person" means a person with a family income of
not more than 80% of the statewide median gross income who is
eligible to participate in the charitable nonprofit housing
organization's program based on criteria established by the
charitable nonprofit housing organization.
(e) "Principal residence" means property exempt as a principal
residence under section 7cc.