Bill Text: MI SB0218 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Property tax; exemptions; new construction on principal residence property; exempt for certain period. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7qq.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2009-02-12 - Referred To Committee On Finance [SB0218 Detail]
Download: Michigan-2009-SB0218-Introduced.html
SENATE BILL No. 218
February 12, 2009, Introduced by Senators PAPPAGEORGE, HARDIMAN, CROPSEY, KUIPERS and RICHARDVILLE and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding section 7qq.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7qq. (1) The governing body of a local governmental unit
may by resolution exempt from the collection of taxes under this
act new construction on eligible principal residence property used
as a living area to the extent provided in subsection (5) and for
the period provided in subsection (6). The resolution may include
all or portions of the local governmental unit.
(2) Before acting on the resolution, the clerk of the local
governmental unit shall notify in writing the assessor of each
local tax collecting unit in the local governmental unit and the
legislative body of each taxing jurisdiction that levies ad valorem
property taxes in the local governmental unit and shall set a date
for a public hearing on the adoption of the resolution. Notice of
the public hearing shall be published twice in a newspaper of
general circulation in the local governmental unit, not less than
20 nor more than 40 days before the date of the hearing. The notice
shall state the date, time, and place of the hearing. At that
hearing, a citizen, taxpayer, official from a taxing jurisdiction
that levies ad valorem property taxes in the local governmental
unit, or a property owner of the local governmental unit has the
right to be heard in regard to the exemption under this section.
(3) Not more than 30 days after the public hearing, if the
governing body of the local governmental unit intends to proceed
with the exemption, the governing body shall adopt, by majority
vote of its members elected and serving, a resolution granting the
exemption. The adoption of the resolution is subject to all
applicable statutory or charter provisions with respect to the
approval or disapproval by the chief executive or other officer of
the local governmental unit and the adoption of a resolution over
his or her veto. This resolution shall be filed with the secretary
of state promptly after its adoption.
(4) The proceedings establishing the exemption shall be
presumptively valid unless contested in a court of competent
jurisdiction within 60 days after the filing of the resolution with
the secretary of state.
(5) New construction eligible for exemption under this section
is limited as follows:
(a) For eligible principal residence property less than 3,000
square feet in area, living area new construction of not more than
50% of the existing living area of that eligible principal
residence property.
(b) For eligible principal residence property 3,000 square
feet or greater in area, living area new construction of not more
than 25% of the existing living area of that eligible principal
residence property.
(6) The exemption under this section is effective on the
December 31 immediately succeeding the adoption of the resolution
by the governing body of the local governmental unit under
subsection (3). The exemption shall continue in effect until the
eligible principal residence property is transferred or for a
period specified in the resolution which shall not be more than 5
years, whichever is sooner. If the eligible principal residence
property is transferred, the taxable value shall be adjusted under
section 27a(3). If the eligible principal residence property has
not been transferred and the period specified in the resolution has
expired, the property's taxable value shall be adjusted as provided
in section 34d(1)(b)(i).
(7) As used in this section:
(a) "Eligible principal residence property" means a principal
residence exempt under section 7cc from the tax levied by a local
school district for school operating purposes to the extent
provided under section 1211 of the revised school code, 1976 PA
451, MCL 380.1211, in the year immediately preceding the first year
in which living area new construction is exempt under this section.
(b) "Living area" means an area of principal residence
property used by 1 or more persons for domestic residential
purposes. Living area includes, but is not limited to, a bedroom,
kitchen, bathroom, living room, family room, den, or enclosed
porch.
(c) "New construction" means that term as defined in section
34d(1)(b)(iii).
(d) "Principal residence" means that term as defined under
section 7dd.
(e) "Transferred" means a transfer of ownership as that term
is described in section 27a.
