Bill Text: MI HB5333 | 2011-2012 | 96th Legislature | Engrossed

---

Bill Title: Property tax; exemptions; nonprofit housing property exemption; provide for. Amends sec. 7kk of 1893 PA 206 (MCL 211.7kk).

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2012-06-07 - Referred To Committee On Finance [HB5333 Detail]

Download: Michigan-2011-HB5333-Engrossed.html

---

HB-5333, As Passed House, June 6, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5333

 

February 1, 2012, Introduced by Reps. Zorn, Kurtz, Ouimet, Somerville, Jenkins, MacMaster, Opsommer, Rendon, Daley, Durhal, Johnson, Huuki, Lund, Lane, Haugh, Geiss, Rutledge, Townsend, Liss, Hobbs, Stapleton and Roy Schmidt 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 Before December 31, 2012, the governing body

 

of a local tax collecting unit may adopt a resolution to exempt

 

from the collection of taxes under this act eligible nonprofit

 

housing property. 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 subsection (1) 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) Beginning December 31, 2012, eligible nonprofit housing

 

property is exempt from the collection of taxes under this act. The

 

exemption under this subsection is effective on the December 31 in

 

the year in which this amendatory act takes effect for eligible

 

nonprofit housing property owned by the charitable nonprofit

 

housing organization when this amendatory act takes effect or on

 

December 31 in the year in which the charitable nonprofit housing

 

organization acquires the eligible nonprofit housing property.

 

Subject to subsection (4), the exemption under this section shall

 

continue in effect for 5 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.

 

     (4) The exemption under subsection (3) shall be reduced by the

 

number of years in which the eligible nonprofit housing property

 

was exempt under subsection (1).

 

     (5) (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 residential

 

building lot, a single family dwelling, or a 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 to be used as that low-income person's

 

principal residence after construction of a single family dwelling

 

or duplex on the residential building lot is completed or the

 

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.