Bill Text: MI HB4122 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Property tax; exemptions; new construction; exempt for certain period. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7nn.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-02-03 - Printed Bill Filed 01/28/2009 [HB4122 Detail]

Download: Michigan-2009-HB4122-Introduced.html

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HOUSE BILL No. 4122

 

January 27, 2009, Introduced by Rep. LeBlanc and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

(MCL 211.1 to 211.155) by adding section 7nn.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7nn. (1) For taxes levied after December 31, 2008, new

 

construction on development property is exempt from the collection

 

of taxes under this act for 24 months or until the new construction

 

is no longer located on development property, whichever occurs

 

first.

 

     (2) To claim an exemption under subsection (1), an owner of

 

development property shall file an affidavit claiming the exemption

 

with the local tax collecting unit by May 1. The affidavit shall be

 

on a form prescribed by the department of treasury.

 

     (3) Upon receipt of an affidavit filed under subsection (2),

 

the assessor shall determine if the real property on which new

 

construction is located is development property. If the real

 

property is development property, the assessor shall exempt the new

 

construction located on that development property from the

 

collection of taxes under this act for 24 months or until the new

 

construction is no longer located on development property,

 

whichever occurs first.

 

     (4) Not more than 90 days after all or a portion of the

 

exempted new construction is no longer located on development

 

property, an owner shall rescind the exemption for the new

 

construction by filing with the local tax collecting unit a

 

rescission form. The rescission form shall be as prescribed by the

 

department of treasury.

 

     (5) An owner of exempted new construction that is no longer

 

located on development property who fails to file a rescission form

 

as required under subsection (4) 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 $200.00. This penalty shall be

 

collected under 1941 PA 122, MCL 205.1 to 205.31, and shall be

 

deposited in the state school aid fund established in section 11 of

 

article IX of the state constitution of 1963. This penalty may be

 

waived by the department of treasury.

 

     (6) An owner of new construction that is located on

 

development property on May 1 for which an exemption was not on the

 

tax roll may file an appeal with the July or December board of

 

review in the year the exemption was claimed or the immediately

 

succeeding year. An owner of new construction that is located on

 

development 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.

 

     (7) If the assessor of the local tax collecting unit believes

 

that new construction for which an exemption has been granted is

 

not located on development property, 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 an exemption under this section is erroneously granted,

 

an owner may request in writing that the local tax collecting unit

 

withdraw the exemption. If an owner requests that an exemption be

 

withdrawn, the local assessor shall notify the owner that the

 

exemption issued under this section has been denied based on that

 

owner's request. If an exemption is withdrawn, the new construction

 

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 the 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. If an owner requests that an exemption under this section

 

be withdrawn before that owner is contacted in writing by the local

 

assessor regarding that owner's eligibility for the exemption and

 

that owner pays the corrected tax bill issued under this subsection

 

within 30 days after the corrected tax bill is issued, that owner

 

is not liable for any penalty or interest on the additional tax. An

 

owner who pays a corrected tax bill issued under this subsection

 

more than 30 days after the corrected tax bill is issued is liable

 

for the penalties and interest that would have accrued if the

 

exemption had not been granted from the date the taxes were

 

originally levied.

 

     (9) As used in this section:

 

     (a) "Development property" means real property on which a

 

residential dwelling, condominium unit, or other structure is

 

located, which residential dwelling, condominium unit, or other

 

structure is not occupied and has never been occupied.

 

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

 

34d.