Bill Text: MI HB6336 | 2017-2018 | 99th Legislature | Introduced

---

Bill Title: Property tax; exemptions; tax exemption for certain real property owned by certain health care entities; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7xx.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-09-25 - Bill Electronically Reproduced 09/06/2018 [HB6336 Detail]

Download: Michigan-2017-HB6336-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 6336

 

 

September 6, 2018, Introduced by Rep. LaFave and referred to the Committee on Michigan Competitiveness.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

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

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7xx. (1) The governing body of a local tax collecting

 

unit may, as provided in this section, adopt a resolution to exempt

 

from the collection of taxes under this act specifically identified

 

real property that meets all of the following:

 

     (a) Is located in an eligible distressed area.

 

     (b) Is owned and used by a qualified health care entity

 

primarily to provide health services.

 

     (c) Was purchased by that qualified health care entity from a

 

municipal health facilities corporation that previously owned and

 

used the property primarily to provide health services.

 

     (2) A resolution adopted by the governing body of a local tax

 

collecting unit under subsection (1) must set forth the period

 

during which specifically identified real property is exempt, which

 

period shall not exceed 20 years. If the resolution is approved as

 

provided in this section, the exemption of that specifically

 

identified real property is effective on the December 31

 

immediately succeeding the adoption of the resolution and continues

 

in effect through December 30 in the final year of exemption as

 

determined in the resolution.

 

     (3) A resolution adopted by the governing body of a local tax

 

collecting unit under subsection (1) may include terms and

 

conditions of the agreement by which the qualified health care

 

entity purchased the specifically identified real property from the

 

municipal health facilities corporation and upon which the

 

exemption under this section is predicated.

 

     (4) Before acting on the resolution under subsection (1), 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. 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 before

 

acting on the resolution under subsection (1). A copy of the

 

resolution adopted under subsection (1) shall be filed with the

 

state tax commission, the state treasurer, and all affected taxing

 

units. A resolution adopted under subsection (1) is not effective

unless approved as provided in subsection (5).

 

     (5) Not more than 60 days after receipt of a copy of the

 

resolution adopted by the governing body of a local tax collecting

 

unit under subsection (1), the state tax commission shall determine

 

if the real property subject to the exemption meets the

 

requirements of subsection (1). If the state tax commission

 

determines that the real property subject to the exemption meets

 

the requirements of subsection (1), the state treasurer shall

 

approve the resolution adopted under subsection (1) if the state

 

treasurer determines that exempting that real property is necessary

 

to promote economic stability, prevent unemployment, and maintain

 

access to critical health services in the area served by the

 

qualified health care entity.

 

     (6) Not more than 45 days after the state treasurer approves

 

under subsection (5) a resolution adopted under subsection (1), the

 

county in which the local tax collecting unit that adopted the

 

resolution under subsection (1) is located may by resolution elect

 

to withdraw all mills levied by that county from the exemption

 

under this section. If a county elects to withdraw all mills levied

 

by that county from the exemption under this section, the local tax

 

collecting unit shall levy and collect all mills levied by that

 

county on the real property owned by a qualified health care entity

 

identified in the resolution adopted under subsection (1). A copy

 

of a resolution adopted under this subsection shall be filed with

 

the local tax collecting unit, the state tax commission, and the

 

state treasurer.

 

     (7) The state tax commission shall annually report to the

senate finance committee and house tax policy committee the total

 

number of qualified health care entities that are receiving an

 

exemption under this section.

 

     (8) As used in this section:

 

     (a) "Eligible distressed area" means that term as defined in

 

section 11 of the state housing development authority act of 1966,

 

1966 PA 346, MCL 125.1411.

 

     (b) "Health care facilities" and "health services" mean those

 

terms as defined in section 103 of the municipal health facilities

 

corporations act, 1987 PA 230, MCL 331.1103.

 

     (c) "Municipal health facilities corporation" means

 

"corporation" as that term is defined in section 103(d) of the

 

municipal health facilities corporations act, 1987 PA 230, MCL

 

331.1103.

 

     (d) "Qualified health care entity" means a for-profit entity

 

that purchased health care facilities from a municipal health

 

facilities corporation and is using those facilities primarily to

 

provide health services.