SB-0171, As Passed House, March 24, 2016

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 171

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending section 7d (MCL 211.7d), as amended by 2012 PA 66.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 7d. (1) Housing owned and operated by a nonprofit

corporation or association, by a limited dividend housing

corporation, or by this state, a political subdivision of this

state, or an instrumentality of this state, for occupancy or use

solely by elderly or disabled families is exempt from the

collection of taxes under this act. For purposes of this section,

housing is considered occupied solely by elderly or disabled

families even if 1 or more of the units is occupied by service

personnel, such as a custodian or nurse.

(2) An owner of property may claim an exemption under this

section on by simultaneously filing a form prescribed by the

department of treasury with both the assessor of the local tax

collecting unit and the department of treasury no later than

October 31. The assessor of the local tax collecting unit in which

the property is located shall approve or disapprove a claim for

exemption under this section within 60 days of the receipt of the

claim for exemption. The assessor shall notify the owner and the

department of treasury in writing of the exemption's approval or

disapproval by December 31 following the initial filing. The

department of treasury may deny an exemption under this section.

The department of treasury may grant an exemption under this

section for 2012 and the 3 immediately preceding years for property

that would have qualified for the exemption under this section if

an owner of that property had timely filed in 2010 the form

required under this subsection. The department of treasury may

grant an exemption under this section, effective December 31, 2011,

for property that would have qualified for the exemption under this

section if an application had been timely filed in 2011. If

granting the exemption under this section results in an overpayment

of the tax, a rebate, including any interest paid, shall be made to

the taxpayer 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 within 30

days of the date the exemption is granted. The rebate shall be

without interest. An If a claim for exemption under this section

~~begins~~ is filed by October 31 and is approved, that exemption shall

begin on December 31 of the year in which the ~~exemption is approved~~

facility is fully and finally completed and the owner of the

property properly submitted a claim for exemption to the assessor

of the local tax collecting unit under this subsection and shall

continue until the property is no longer used for occupancy or use

solely by elderly or disabled families. The owner of property

exempt under this section shall notify the local tax collecting

unit in which the property is located and the department of

treasury of any change in the property that would affect the

exemption under this section.

(3) If property for which an exemption is claimed under this

section would have been subject to the collection of taxes under

this act if an exemption had not been granted under this section,

the state treasurer, upon verification, shall make a payment in

lieu of taxes, which shall be in the following amount:

(a) For property exempt under this section before January 1,

2009, the amount of taxes paid on that property for the 2008 tax

year, excluding any mills that would have been levied under all of

the following:

(i) Section 1211 of the revised school code, 1976 PA 451, MCL

380.1211.

(ii) The state education tax act, 1993 PA 331, MCL 211.901 to

211.906.

(b) For property not exempt under this section before January

1, 2009 and for new construction to property exempt under this

section before January 1, 2009, the local tax collecting unit shall

calculate, on a form prescribed by the department of treasury, a

payment calculated by multiplying the taxable value of the property

in the first year for which the exemption is valid by the number of

mills levied in that year by all taxing units in the local tax

collecting unit, excluding any mills that would have been levied

under all of the following:

(i) Section 1211 of the revised school code, 1976 PA 451, MCL

380.1211.

(ii) The state education tax act, 1993 PA 331, MCL 211.901 to

211.906.

(4) All payments under subsection (3) shall be forwarded to

the local tax collecting unit by December 15 each year. The

department of treasury may require that the local tax collecting

units receive payments under this section through electronic funds

transfer.

(5) The local tax collecting unit shall distribute the amount

received under subsection (4) in the same manner and in the same

proportions as general ad valorem taxes collected under this act,

excluding any distribution that would have been made under section

1211 of the revised school code, 1976 PA 451, MCL 380.1211, and the

state education tax act, 1993 PA 331, MCL 211.901 to 211.906.

(6) The state treasurer shall estimate the amount necessary to

meet the expense of administering the provisions of this section in

each year, and the legislature shall appropriate an amount

sufficient to meet that expense in each year. If insufficient funds

are appropriated to fully pay all payments, the department of

treasury shall prorate the payments made under this section.

(7) Property that is used for occupancy or use solely by

elderly or disabled families that is ~~eligible for exemption~~ exempt

under this section is not subject to forfeiture, foreclosure, and

sale for taxes returned as delinquent under this act for any year

in which the property was exempt under this section.

(8) The department of treasury has standing to appeal the

assessed value, taxable value, state equalized valuation, exempt

status, classification, and all other issues concerning tax

liability for property exempt under this section in the Michigan

tax tribunal and all courts of this state.

(9) As used in this section:

(a) "Disabled person" means a person with disabilities.

(b) "Elderly or disabled families" means families consisting

of 2 or more persons if the head of the household, or his or her

spouse, is 62 years of age or over or is a disabled person, and

includes a single person who is 62 years of age or over or is a

disabled person.

of title II of the housing act of 1959, Public Law 86-372. ~~, 12 USC~~

~~1701q.~~

(d) "Housing" means new or rehabilitated structures with 8 or

more residential units in 1 or more of the structures for occupancy

and use by elderly or disabled persons, including essential

contiguous land and related facilities as well as all personal

property of the corporation, association, or limited dividend

housing corporation used in connection with the facilities.

(e) "Limited dividend housing corporation" means a corporation

incorporated or qualified under the laws of this state and chapter

6 of the state housing development authority act of 1966, 1966 PA

346, MCL 125.1481 to 125.1486, or a limited dividend housing

association organized and qualified under chapter 7 of the state

housing development authority act of 1966, 1966 PA 346, MCL

125.1491 to 125.1496, that will rehabilitate and own a housing

facility or project previously qualified, built, or financed under

section 202 of title II of the housing act of 1959, Public Law 86-

372, ~~12 USC 1701q,~~ section 236 of title II of the national housing

act, chapter 847, 82 ~~Stat.~~ Stat 498, ~~12 USC 1715z-1,~~ or section 811

of subtitle B of title VIII of the Cranston-Gonzalez national

affordable housing act, Public Law 101-625. ~~, 42 USC 8013.~~

(f) "New construction" means that term as defined in section

34d.

(g) "Nonprofit corporation or association" means a nonprofit

corporation or association incorporated under the laws of this

state not otherwise exempt from the collection of taxes under this

act, operating a housing facility or project qualified, built, or

financed under section 202 of title II of the housing act of 1959,

Public Law 86-372, ~~12 USC 1701q,~~ section 236 of title II of the

national housing act, chapter 847, 82 ~~Stat.~~ Stat 498, ~~12 USC 1715z-~~

1, or section 811 of subtitle B of title VIII of the Cranston-

Gonzalez national affordable housing act, Public Law 101-625. ~~, 42~~

~~USC 8013.~~

(h) "Person with disabilities" means that term as defined in

section 811 of subtitle B of title VIII of the Cranston-Gonzalez

national affordable housing act, Public Law 101-625. ~~, 42 USC 8013.~~

(i) "Residential units" includes 1-bedroom units licensed

under the adult foster care facility licensing act, 1979 PA 218,

MCL 400.701 to 400.737, for persons who share dining, living, and

bathroom facilities and who have a mental illness, developmental

disability, or a physical disability, as those terms are defined in

the adult foster care facility licensing act, 1979 PA 218, MCL

400.701 to 400.737, or individual self-contained dwellings in an

unlicensed facility. At the time of construction or rehabilitation,

both self-contained dwellings and 1-bedroom units must be financed

either under section 202 of title II of the housing act of 1959,

Public Law 86-372, ~~12 USC 1701q,~~ or under section 811 of subtitle B

of title VIII of the Cranston-Gonzalez national affordable housing

act, Public Law 101-625. ~~, 42 USC 8013.~~

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.