Bill Text: MI SB1142 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Property tax: payment and collection; application of a certain income tax credit toward payment of property taxes levied on certain community land trust property; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2022-09-07 - Referred To Committee On Finance [SB1142 Detail]
Download: Michigan-2021-SB1142-Introduced.html
SENATE BILL NO. 1142
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding section 7yy.
the people of the state of michigan enact:
Sec. 7yy. (1) If a qualified claimant who owns residential improvements located on real property owned by a community land trust obtains approval of the credit provided for in section 518 of the income tax act of 1967, 1967 PA 281, MCL 206.518, and notice of that approval has been provided to the assessor of the local tax collecting unit, as provided in section 518(4) of the income tax act of 1967, 1967 PA 281, MCL 206.518, the assessor shall determine the separate taxable value of the claimant's residential improvements and of the real property on which those residential improvements are located and the estimated amount of property taxes attributable to the claimant's residential improvements and to the real property on which those residential improvements are located, as provided in section 518(4) of the income tax act of 1967, 1967 PA 281, MCL 206.518. If a qualified claimant elects to defer payment until this state remits the amount of the credit directly to the local tax collecting unit toward payment of property taxes levied on the claimant's residential improvements and the real property on which those residential improvements are located, as provided in section 518(8) of the income tax act of 1967, 1967 PA 281, MCL 206.518, the claimant or a person acting on the claimant's behalf shall, in a form and manner prescribed by the department of treasury, file an affidavit with the local tax collecting unit that includes the name of the owner of the residential improvements, the address of the residential improvements, the name and address of the community land trust, and any further information that the department considers necessary.
(2) A local tax collecting unit that receives an affidavit filed under subsection (1) shall defer collecting any property taxes levied on the qualified claimant's residential improvements and the real property on which those residential improvements are located in the designated tax year until this state remits the amount of the credit for that year directly to the local tax collecting unit toward payment of those property taxes. This state shall make that payment by not later than December 15 of the designated tax year. This state may require a local tax collecting unit to accept payment under this subsection through electronic funds transfer if the local tax collecting unit is able to accept payment in this manner.
(3) Except as otherwise provided in this subsection, property taxes deferred under subsection (2) are not subject to penalties or interest for the period of deferment. Any unpaid balance remaining after this state's payment described in subsection (2) is subject to collection from the qualified claimant under this act.
(4) Upon this state's payment of property taxes under subsection (2), the local tax collecting unit shall provide written notification to the qualified claimant of that payment, the amount of any unpaid balance due and payable under subsection (3), and the date by which that unpaid balance must be paid before it is subject to any penalties or interest under this act.
(5) As used in this section:
(a) "Community land trust" means that term as defined in section 504 of the income tax act of 1967, 1967 PA 281, MCL 206.504.
(b) "Qualified claimant" and "residential improvements" mean those terms as defined in section 518 of the income tax act of 1967, 1967 PA 281, MCL 206.518.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 1141 of the 101st Legislature is enacted into law.
