Bill Text: MI HB4866 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Property tax; personal property; classification of leased personal property; revise under certain circumstances. Amends sec. 34c of 1893 PA 206 (MCL 211.34c).
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2009-04-30 - Printed Bill Filed 04/30/2009 [HB4866 Detail]
Download: Michigan-2009-HB4866-Introduced.html
HOUSE BILL No. 4866
April 29, 2009, Introduced by Reps. Marleau and Mayes and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 34c (MCL 211.34c), as amended by 2006 PA 646.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 34c. (1) Not later than the first Monday in March in each
year, the assessor shall classify every item of assessable property
according to the definitions contained in this section. Following
the March board of review, the assessor shall tabulate the total
number of items and the valuations as approved by the board of
review for each classification and for the totals of real and
personal property in the local tax collecting unit. The assessor
shall transmit to the county equalization department and to the
state tax commission the tabulation of assessed valuations and
other statistical information the state tax commission considers
necessary to meet the requirements of this act and 1911 PA 44, MCL
209.1 to 209.8.
(2) The classifications of assessable real property are
described as follows:
(a) Agricultural real property includes parcels used partially
or wholly for agricultural operations, with or without buildings.
For taxes levied after December 31, 2002, agricultural real
property includes buildings on leased land used for agricultural
operations. As used in this subdivision, "agricultural operations"
means the following:
(i) Farming in all its branches, including cultivating soil.
(ii) Growing and harvesting any agricultural, horticultural, or
floricultural commodity.
(iii) Dairying.
(iv) Raising livestock, bees, fish, fur-bearing animals, or
poultry, including operating a game bird hunting preserve licensed
under part 417 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.41701 to 324.41712, and also
including farming operations that harvest cervidae on site where
not less than 60% of the cervidae were born as part of the farming
operation. As used in this subparagraph, "livestock" includes, but
is not limited to, cattle, sheep, new world camelids, goats, bison,
privately owned cervids, ratites, swine, equine, poultry,
aquaculture, and rabbits. Livestock does not include dogs and cats.
(v) Raising, breeding, training, leasing, or boarding horses.
(vi) Turf and tree farming.
(vii) Performing any practices on a farm incident to, or in
conjunction with, farming operations. A commercial storage,
processing, distribution, marketing, or shipping operation is not
part of agricultural operations.
(b) Commercial real property includes the following:
(i) Platted or unplatted parcels used for commercial purposes,
whether wholesale, retail, or service, with or without buildings.
(ii) Parcels used by fraternal societies.
(iii) Parcels used as golf courses, boat clubs, ski areas, or
apartment buildings with more than 4 units.
(iv) For taxes levied after December 31, 2002, buildings on
leased land used for commercial purposes.
(c) Developmental real property includes parcels containing
more than 5 acres without buildings, or more than 15 acres with a
market value in excess of its value in use. Developmental real
property may include farm land or open space land adjacent to a
population center, or farm land subject to several competing
valuation influences.
(d) Industrial real property includes the following:
(i) Platted or unplatted parcels used for manufacturing and
processing purposes, with or without buildings.
(ii) Parcels used for utilities sites for generating plants,
pumping stations, switches, substations, compressing stations,
warehouses, rights-of-way, flowage land, and storage areas.
(iii) Parcels used for removal or processing of gravel, stone,
or mineral ores, whether valued by the local assessor or by the
state geologist.
(iv) For taxes levied after December 31, 2002, buildings on
leased land used for industrial purposes.
(v) For taxes levied after December 31, 2002, buildings on
leased land for utility purposes.
(e) Residential real property includes the following:
(i) Platted or unplatted parcels, with or without buildings,
and condominium apartments located within or outside a village or
city, which are used for, or probably will be used for, residential
purposes.
(ii) Parcels that are used for, or probably will be used for,
recreational purposes, such as lake lots and hunting lands, located
in an area used predominantly for recreational purposes.
(iii) For taxes levied after December 31, 2002, a home, cottage,
or cabin on leased land, and a mobile home that would be assessable
as real property under section 2a except that the land on which it
is located is not assessable because the land is exempt.
(f) Timber-cutover real property includes parcels that are
stocked with forest products of merchantable type and size, cutover
forest land with little or no merchantable products, and marsh
lands or other barren land. However, when a typical purchase of
this type of land is for residential or recreational uses, the
classification shall be changed to residential.
(3) The classifications of assessable personal property are
described as follows:
(a) Agricultural personal property includes any agricultural
equipment and produce not exempt by law.
(b) Commercial personal property includes the following:
(i) All equipment, furniture, and fixtures on commercial
parcels, and inventories not exempt by law.
(ii) All outdoor advertising signs and billboards.
(iii) Well drilling rigs and other equipment attached to a
transporting vehicle but not designed for operation while the
vehicle is moving on the highway.
(iv) Unlicensed commercial vehicles or commercial vehicles
licensed as special mobile equipment or by temporary permits.
(c) Industrial personal property includes the following:
(i) All machinery and equipment, furniture and fixtures, and
dies on industrial parcels, whether owned or leased, and
inventories not exempt by law.
(ii) Personal property of mining companies valued by the state
geologist.
(iii) Personal property owned by a leasing company and located
on industrial real property.
(d) For taxes levied before January 1, 2003, residential
personal property includes a home, cottage, or cabin on leased
land, and a mobile home that would be assessable as real property
under section 2a except that the land on which it is located is not
assessable because the land is exempt.
(e) Utility personal property includes the following:
(i) Electric transmission and distribution systems, substation
equipment, spare parts, gas distribution systems, and water
transmission and distribution systems.
(ii) Oil wells and allied equipment such as tanks, gathering
lines, field pump units, and buildings.
(iii) Inventories not exempt by law.
(iv) Gas wells with allied equipment and gathering lines.
(v) Oil or gas field equipment stored in the open or in
warehouses such as drilling rigs, motors, pipes, and parts.
(vi) Gas storage equipment.
(vii) Transmission lines of gas or oil transporting companies.
(4) For taxes levied before January 1, 2003, buildings on
leased land of any classification are improvements where the owner
of the improvement is not the owner of the land or fee, the value
of the land is not assessed to the owner of the building, and the
improvement has been assessed as personal property pursuant to
section 14(6).
(5) If the total usage of a parcel includes more than 1
classification, the assessor shall determine the classification
that most significantly influences the total valuation of the
parcel.
(6) An owner of any assessable property who disputes the
classification of that parcel shall notify the assessor and may
protest the assigned classification to the March board of review.
An owner or assessor may appeal the decision of the March board of
review by filing a petition with the state tax commission not later
than June 30 in that tax year. The state tax commission shall
arbitrate the petition based on the written petition and the
written recommendations of the assessor and the state tax
commission staff. An appeal may not be taken from the decision of
the state tax commission regarding classification complaint
petitions and the state tax commission's determination is final and
binding for the year of the petition.
(7) The department of treasury may appeal the classification
of any assessable property to the residential and small claims
division of the Michigan tax tribunal not later than December 31 in
the tax year for which the classification is appealed.
(8) This section shall not be construed to encourage the
assessment of property at other than the uniform percentage of true
cash value prescribed by this act.
(9) The assessor of each city or township in which is located
property that is subject to payment in lieu of taxes under subpart
14 of part 21 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.2152 to 324.2154, shall place that
property on an assessment roll that is separate from the assessment
roll prepared under section 24. For purposes of calculating the
debt limitation imposed by section 11 of article VII of the state
constitution of 1963, the separate assessment roll for property
that is subject to payment in lieu of taxes under subpart 14 of
part 21 of the natural resources and environmental protection act,
1994 PA 451, MCL 324.2152 to 324.2154, required by this subsection
shall be combined with the assessment roll prepared under section
24.
Enacting section 1. This amendatory act is curative in nature
and clarifies the original intent of the legislature that the
classification of property as industrial personal property, as
defined in section 34c of the general property tax act, 1893 PA
206, MCL 211.34c, and for purposes of the credits available for
industrial personal property under the Michigan business tax act,
2007 PA 36, MCL 208.1101 to 208.1601, is determined regardless of
whether such personal property is owned or leased.
