HOUSE BILL No. 5032

 

August 13, 2003, Introduced by Reps. Moolenaar, Walker, Palsrok and Emmons and referred to the Committee on Land Use and Environment.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 2000 PA 261, entitled                                             

                                                                                

    "Agricultural property recapture act,"                                      

                                                                                

    by amending sections 3 and 6 (MCL 211.1003 and 211.1006).                   

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3.  (1) Beginning January 1, 2001, the agricultural                    

                                                                                

2   property recapture tax provided under section 4 is imposed as               

                                                                                

3   provided in this section if the property meets all of the                   

                                                                                

4   following conditions:                                                       

                                                                                

5       (a) The property was transferred after December 31, 1999.                   

                                                                                

6       (b) The taxable value of the property was not adjusted under                

                                                                                

7   section 27a(3) of the general property tax act, 1893 PA 206,                

                                                                                

8   MCL 211.27a, after the transfer described in subdivision (a) due            

                                                                                

9   to the provisions of section 27a(7)(n) of the general property              

                                                                                

10  tax act, 1893 PA 206, MCL 211.27a.                                          

                                                                                

11      (c) The property is converted by a change in use after                      

                                                                                


                                                                                

1   December 31, 2000.                                                          

                                                                                

2       (d) The property is not land that is subject to a specific                  

                                                                                

3   tax under part 363 of the natural resources and environmental               

                                                                                

4   protection act, 1994 PA 451, MCL 324.36301 to 324.36317, when it            

                                                                                

5   is converted by a change of use.                                            

                                                                                

6       (2) If a recapture tax is imposed because qualified                         

                                                                                

7   agricultural property is converted by a change in use described             

                                                                                

8   under section 2(c)(i), the recapture tax is the obligation of the           

                                                                                

9   person who owned the property at the time the property was                  

                                                                                

10  converted by a change in use.  If a recapture tax is imposed on             

                                                                                

11  the owner of the property under this subsection, the recapture              

                                                                                

12  tax is a lien on the property subject to the recapture tax until            

                                                                                

13  paid.  If the recapture tax is not paid within 90 days of the               

                                                                                

14  date the property was converted by a change in use, the treasurer           

                                                                                

15  may bring a civil action against the owner of the property as of            

                                                                                

16  the date the property was converted by a change in use.  If the             

                                                                                

17  recapture tax remains unpaid on the March 1 in the year                     

                                                                                

18  immediately succeeding the year in which the property is                    

                                                                                

19  converted by a change in use, the property on which the recapture           

                                                                                

20  tax is due shall be returned as delinquent to the county                    

                                                                                

21  treasurer of the county in which the property is located.                   

                                                                                

22  Property returned as delinquent under this section, and upon                

                                                                                

23  which the recapture tax, interest, penalties, and fees remain               

                                                                                

24  unpaid after the property is returned as delinquent to the county           

                                                                                

25  treasurer, is subject to forfeiture, foreclosure, and sale for              

                                                                                

26  the enforcement and collection of the delinquent taxes as                   

                                                                                

27  provided in sections 78 to 79a of the general property tax act,             


                                                                                

1   1893 PA 206, MCL 211.78 to 211.79a.                                         

                                                                                

2       (3) If a recapture tax is imposed because qualified                         

                                                                                

3   agricultural property is converted by a change in use as                    

                                                                                

4   described in section 2(c)(ii), the recapture tax is an obligation            

                                                                                

5   of the person who owned the property prior to the transfer and              

                                                                                

6   the recapture tax is due when the instruments transferring the              

                                                                                

7   property are recorded with the register of deeds.  The register             

                                                                                

8   of deeds shall not record an instrument transferring the property           

                                                                                

9   before the recapture tax is paid.                                           

                                                                                

10      Sec. 6.  The treasurer shall credit the proceeds of the                     

                                                                                

11  recapture tax collected by county treasurers under this act to              

                                                                                

12  the  fund in which the proceeds from lien payments made under               

                                                                                

13  part 361 of the natural resources and environmental protection              

                                                                                

14  act, 1994 PA 451, MCL 324.36101 to 324.36117, are deposited                 

                                                                                

15  agricultural preservation fund created in section 36202 of the              

                                                                                

16  natural resources and environmental protection act, 1994 PA 451,            

                                                                                

17  MCL 324.36202.                                                              

                                                                                

18      Enacting section 1.  This amendatory act does not take                      

                                                                                

19  effect unless Senate Bill No. ____ or House Bill No. 5030                   

                                                                                

20  (request no. 03047'03) of the 92nd Legislature is enacted into              

                                                                                

21  law.