HB-6626, As Passed House, November 30, 2006

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 6626

 

November 14, 2006, Introduced by Rep. Stakoe and referred to the Committee on Tax Policy.

 

     A bill to amend 1893 PA 206, entitled

 

"The general property tax act,"

 

by amending section 7d (MCL 211.7d), as amended by 1998 PA 469.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 7d. (1) Housing owned and operated by a nonprofit

 

corporation or association, by a limited dividend housing

 

corporation, or by this state, a political subdivision of this

 

state, or an instrumentality of this state, for occupancy or use

 

solely by elderly or disabled families is exempt from the

 

collection of taxes under this act. For purposes of this section,

 

housing is considered occupied solely by elderly or disabled

 

families even if 1 or more of the units is occupied by service

 

personnel, such as a custodian or nurse.

 


     (2) If a local tax collecting unit has a tax roll for

 

collection, and the tax roll contains taxes assessed against

 

property for which an exemption is claimed under this section, the

 

appropriate collecting officer shall prepare a statement on a form

 

prescribed by the department of management and budget describing

 

the property for which an exemption is claimed under this section,

 

the names and addresses of the corporation,  or  association, or

 

limited dividend housing corporation entitled to the exemption, the

 

total amount of taxes exempted, and the amount of taxes assessed

 

against the property. The local tax collecting unit shall forward

 

the statement to the department of management and budget. Upon

 

verification of the statement, the state treasurer shall draw his

 

or her warrant upon the state treasury for the total amount of tax

 

revenues lost by the local tax collecting unit as a result of the

 

exemption under this section as shown by the statement. After

 

examining the statement, the state treasurer shall forward the

 

warrants to the treasurer of the local tax collecting unit.

 

     (3) The director of the department of management and budget

 

shall estimate the amount necessary to meet the expense of

 

administering the provisions of this section in each year, and the

 

legislature shall appropriate an amount sufficient to meet that

 

expense in each year.

 

     (4) As used in this section:

 

     (a) "Disabled person" means a person with disabilities.

 

     (b) "Elderly or disabled families" means families consisting

 

of 2 or more persons if the head of the household, or his or her

 

spouse, is 62 years of age or over or is a disabled person, and

 


includes a single person who is 62 years of age or over or is a

 

disabled person.

 

     (c) "Elderly person" means that term as defined in section 202

 

of title II of the housing act of 1959, Public Law 86-372, 12  

 

U.S.C.  USC 1701q.

 

     (d) "Housing" means new or rehabilitated structures with 8 or

 

more residential units in 1 or more of the structures for occupancy

 

and use by elderly or disabled persons, including essential

 

contiguous land and related facilities as well as all personal

 

property of the corporation,  or  association, or limited dividend

 

housing corporation used in connection with the facilities.

 

     (e) "Limited dividend housing corporation" means a corporation

 

incorporated or qualified under the laws of this state and chapter

 

6 of the state housing development authority act of 1966, 1966 PA

 

346, MCL 125.1481 to 125.1486, or a limited dividend housing

 

association organized and qualified under chapter 7 of the state

 

housing development authority act of 1966, 1966 PA 346, MCL

 

125.1491 to 125.1496, that will rehabilitate and own a housing

 

facility or project previously qualified, built, or financed under

 

section 202 of title II of the housing act of 1959, Public Law 86-

 

372, 12 USC 1701q, section 236 of title II of the national housing

 

act, chapter 847, 82 Stat. 498, 12 USC 1715z-1, or section 811 of

 

subtitle B of title VIII of the Cranston-Gonzalez national

 

affordable housing act, Public Law 101-625, 42 USC 8013.

 

     (f)  (e)  "Nonprofit corporation or association" means a

 

nonprofit corporation or association incorporated under the laws of

 

this state not otherwise exempt from the collection of taxes under

 


this act, operating a housing facility or project qualified, built,

 

or financed under section 202 of title II of the housing act of

 

1959, Public Law 86-372, 12  U.S.C.  USC 1701q, section 236 of

 

title II of the national housing act, chapter 847, 82 Stat. 498, 12  

 

U.S.C.  USC 1715z-1, or section 811 of subtitle B of title VIII of

 

the Cranston-Gonzalez national affordable housing act, Public Law

 

101-625, 42  U.S.C.  USC 8013.

 

     (g)  (f)  "Person with disabilities" means that term as

 

defined in section 811 of subtitle B of title VIII of the Cranston-

 

Gonzalez national affordable housing act, Public Law 101-625, 42  

 

U.S.C.  USC 8013.

 

     (h)  (g)  "Residential units" includes 1-bedroom units

 

licensed under the adult foster care facility licensing act, 1979

 

PA 218, MCL 400.701 to 400.737, for persons who share dining,

 

living, and bathroom facilities and who have a mental illness,

 

developmental disability, or a physical  handicap  disability, as

 

those terms are defined in the adult foster care facility licensing

 

act, 1979 PA 218, MCL 400.701 to 400.737, or individual self-

 

contained dwellings in an unlicensed facility. At the time of

 

construction or rehabilitation, both self-contained dwellings and

 

1-bedroom units must be financed  under  either under section 202

 

of title II of the housing act of 1959, Public Law 86-372, 12  

 

U.S.C.  USC 1701q, or under section 811 of subtitle B of title VIII

 

of the Cranston-Gonzalez national affordable housing act, Public

 

Law 101-625, 42  U.S.C.  USC 8013.