October 19, 2016, Introduced by Rep. Chang and referred to the Committee on Local Government.
A bill to authorize local units of government to limit rent
for disabled individuals and individuals over a certain age, to
exempt property from ad valorem property taxes, and to impose a
specific tax; and to provide for the powers and duties of certain
local governmental officers and entities.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "General property tax act" means the general property tax
act, 1893 PA 206, MCL 211.1 to 211.155.
(b) "Individual with a disability" means an individual with a
determinable physical or mental characteristic, which may result
from disease, injury, congenital condition of birth, or functional
disorder, that substantially limits 1 or more of the major life
activities of that individual.
(c) "Local unit" means a local tax collecting unit as that
term is used in the general property tax act.
(d) "Rent limitation ordinance" means an ordinance adopted
under section 2(1).
(e) "Senior citizen" means an individual who is 62 or more
years of age.
(f) "Specific tax" means a specific tax levied as provided for
by ordinance under section 3(2).
Sec. 2. A local unit may adopt an ordinance to limit the rent
paid by senior citizens and individuals with a disability to 50% of
their household incomes. The rent limitation ordinance shall not
apply to an individual who is less than 71 years of age and who is
not an individual with a disability unless the individual has lived
in the dwelling unit for the preceding 5 years.
Sec. 3. (1) A local unit with a rent limitation ordinance may
adopt an ordinance providing that property subject to the rent
limitation ordinance is exempt from ad valorem property taxes.
(2) An ordinance that exempts property from ad valorem
property taxes as provided under subsection (1) shall levy a
specific tax each year upon the owner of property so exempted. The
amount of the specific tax in each year is the amount of tax that
would have been collected on that parcel under the general property
tax act if that parcel was not exempt as provided for by the
ordinance under subsection (1) minus an amount determined pursuant
to the ordinance but not exceeding the ad valorem taxes that would
otherwise be levied on the property by the local unit adopting the
ordinance.
(3) The assessor of each local tax collecting unit shall
determine annually as of December 31 the value and taxable value of
each parcel of property that is exempt from general ad valorem
taxes as provided for by ordinance under subsection (1) and shall
furnish that information to the legislative body of the local unit.
(4) The specific tax is an annual tax payable at the same
times, in the same installments, and to the same officer or
officers as taxes imposed under the general property tax act are
payable.
(5) The officer or officers to whom the specific tax is
payable shall disburse the tax payments received each year to the
state and the same municipalities, counties, school districts, and
other taxing authorities at the same times and in the same amounts
as required by law for the disbursement of taxes collected under
the general property tax act. However, the tax payments disbursed
to the local unit levying the specific tax shall be reduced by the
difference between the amount of the ad valorem property tax that
would otherwise be levied on the property subject to the rent
limitation and the amount of the specific tax.
(6) The specific tax levied becomes a lien on the property
assessed on the same date that a tax becomes a lien on real
property under the general property tax act. A lien for the
specific tax includes any applicable collection fee or interest. A
lien under this subsection continues until paid.
(7) Any unpaid specific tax and any applicable collection fee
or interest shall be returned as delinquent to the county treasurer
at the same time taxes are returned as delinquent under the general
property tax act. Except as otherwise provided in this subsection,
property subject to a specific tax returned as delinquent is
subject to forfeiture, foreclosure, and sale at the same time and
in the same manner as property subject to delinquent taxes under
the general property tax act. If a specific tax or any applicable
collection fee or interest for a property has not been paid for 2
or more years on the date the property is returned as delinquent
under this subsection, the property shall be forfeited to the
county treasurer upon its return and is subject to foreclosure and
sale at the same time and in the same manner as other property
forfeited under the general property tax act.
(8) The owner of property who has failed to pay a specific tax
is not eligible for the exemption provided for by ordinance under
subsection (1) for succeeding tax years.
Enacting section 1. This act takes effect 90 days after the
date it is enacted into law.