Bill Text: MI SB1132 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Housing: affordable; rent limitation for senior citizens and individuals with a disability; authorize local units to impose, and provide for a tax exemption and specific tax. Creates new act.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2020-09-22 - Referred To Committee On Local Government [SB1132 Detail]
Download: Michigan-2019-SB1132-Introduced.html
SENATE BILL NO. 1132
September 22, 2020, Introduced by Senators
ALEXANDER, CHANG, BULLOCK, IRWIN, POLEHANKI, WOJNO and ANANICH and referred
to the Committee on Local Government.
the people of the state of michigan enact:
Sec. 1. This act shall be known and may be cited as the "rent limitation and specific tax authorization act".
(a) "General property tax act" means the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(b) "Individual with a disability" means an individual with a determinable physical or mental characteristic that may result from disease, injury, congenital condition of birth, or functional disorder, that substantially limits 1 or more of the major life activities of that individual.
(c) "Local unit" means a local tax collecting unit as that term is used in the general property tax act.
(d) "Rent limitation ordinance" means an ordinance adopted under section 3.
(e) "Senior citizen" means an individual who is 62 or more years of age.
(f) "Specific tax" means a specific tax levied as provided for by ordinance under section 4(2).
Sec. 3. A local unit may adopt a rent limitation ordinance to limit the rent paid by senior citizens and individuals with a disability to 50% of their household incomes. The rent limitation ordinance must not apply to a senior citizen who is less than 71 years of age if he or she is not an individual with a disability, unless he or she has lived in the rented unit for the preceding 5 years.
Sec. 4. (1) A local unit with a rent limitation ordinance may adopt an ordinance providing that property subject to the rent limitation ordinance is exempt from ad valorem property taxes.
(2) An ordinance that exempts property from ad valorem property taxes as provided under subsection (1) must levy a specific tax each year on the owner of the property exempted. The amount of the specific tax in each year must be the amount of tax that would have been collected on that property under the general property tax act if the property was not exempt under the ordinance adopted under subsection (1), minus an amount, as provided by that ordinance, not exceeding the ad valorem taxes that would otherwise be levied on the property by the local unit adopting the ordinance.
(3) The assessor of each local tax collecting unit shall determine annually as of December 31 the value and taxable value of each parcel of property that is exempt from general ad valorem taxes under an ordinance adopted under subsection (1) and shall furnish that information to the legislative body of the local unit.
(4) The specific tax described in subsection (2) must be an annual tax payable at the same times, in the same installments, and to the same officer or officers as taxes imposed under the general property tax act.
(5) The officer or officers to whom the specific tax described in subsection (2) is payable shall disburse the tax payments received each year to the state and the same municipalities, counties, school districts, and other taxing authorities at the same times and in the same amounts as required by law for the disbursement of taxes collected under the general property tax act. However, the tax payments disbursed to the local unit levying the specific tax must be reduced by the difference between the amount of the ad valorem property tax that would otherwise be levied on the property subject to the rent limitation and the amount of the specific tax.
(6) The specific tax levied in accordance with subsection (2) becomes a lien on the property assessed on the same date that a tax would become a lien on real property under the general property tax act. A lien for the specific tax includes any applicable collection fee or interest. A lien under this subsection continues until paid.
(7) Any unpaid specific tax and any applicable collection fee or interest must be returned as delinquent to the county treasurer at the same time taxes are returned as delinquent under the general property tax act. Except as otherwise provided in this subsection, property subject to a specific tax returned as delinquent is subject to forfeiture, foreclosure, and sale at the same time and in the same manner as property subject to delinquent taxes under the general property tax act. If a specific tax or any applicable collection fee or interest for a property has not been paid for 2 or more years on the date the property is returned as delinquent under this subsection, the property must be forfeited to the county treasurer upon its return and is subject to foreclosure and sale at the same time and in the same manner as other property forfeited under the general property tax act.
(8) If the owner fails to pay the specific tax described in subsection (2), the owner shall not be eligible for the exemption provided by an ordinance adopted under subsection (1) for succeeding tax years until the specific tax, together with interest and penalties, is paid.
Enacting section 1. This act takes effect 90 days after the date it is enacted into law.
