HB-5761, As Passed Senate, December 14, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5761

     A bill to amend 1895 PA 1, entitled

"An act to provide for the incorporation of Masonic Associations;

and to impose certain duties upon the department of commerce,"

(MCL 457.221 to 457.227) by adding section 4a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 4a. (1) Except as limited by subsections (4) and (5),

personal property owned by a corporation incorporated under this

act whose membership policies do not violate the Elliott-Larsen

civil rights act, 1976 PA 453, MCL 37.2101 to 37.2804, and used by

that corporation for nonprofit charitable purposes is exempt from

the collection of taxes under the general property tax act, 1893 PA

206, MCL 211.1 to 211.157, if the corporation applies for an

exemption under this subsection on a form prescribed by the

department of treasury and the governing body of the local tax

collecting unit in which the corporation is located adopts a

resolution to exempt that personal property from the collection of

taxes under the general property tax act, 1893 PA 206, MCL 211.1 to

211.157. Before adopting a resolution under this subsection, the

clerk of the local tax collecting unit shall notify in writing the

assessor of the local tax collecting unit in which the corporation

is located and the legislative body of each taxing unit that levies

ad valorem property taxes in the local tax collecting unit in which

the corporation is located and the governing body of the local tax

collecting unit shall afford the assessor and a representative of

the affected taxing units an opportunity for a hearing. If the

governing body of the local tax collecting unit does not approve or

reject an application for an exemption under this subsection within

120 days after the application is submitted, the application shall

be considered approved.

     (2) Except as limited by subsections (4) and (5), real

property owned and occupied by a corporation incorporated under

this act and used by that corporation for nonprofit charitable

purposes is exempt from the collection of taxes under the general

property tax act, 1893 PA 206, MCL 211.1 to 211.157, if the

corporation applies for an exemption under this subsection on a

form prescribed by the department of treasury and the governing

body of the local tax collecting unit in which the corporation is

located adopts a resolution to exempt that personal property from

the collection of taxes under the general property tax act, 1893 PA

206, MCL 211.1 to 211.157. Before adopting a resolution under this

subsection, the clerk of the local tax collecting unit shall notify

in writing the assessor of the local tax collecting unit in which

the corporation is located and the legislative body of each taxing

unit that levies ad valorem property taxes in the local tax

collecting unit in which the corporation is located and the

governing body of the local tax collecting unit shall afford the

assessor and a representative of the affected taxing units an

opportunity for a hearing. If the governing body of the local tax

collecting unit does not approve or reject an application for an

exemption under this subsection within 120 days after the

application is submitted, the application shall be considered

approved.

     (3) An exemption under subsection (1) or (2) is effective on

the December 31 immediately succeeding the submission of the

application for exemption by the corporation under subsection (1)

or (2) if the governing body of the local tax collecting unit does

not approve or reject that application for exemption or on the

December 31 immediately succeeding the adoption of the resolution

by the governing body of the local tax collecting unit. An

exemption under subsection (1) or (2) shall continue in effect for

a period of not less than 5 years and not more than 12 years if the

governing body of the local tax collecting unit does not approve or

reject that application for exemption or for the period of time

specified in a resolution approving an exemption under subsection

(1) or (2). If the governing body of the local tax collecting unit

does not approve or reject an application for exemption under

subsection (1) or (2) and that application for exemption is

considered approved, any subsequent approval of that application

for exemption by the governing body of that local tax collecting

unit shall be for a period of not less than 5 years. A copy of the

resolution shall be filed with the state tax commission.

     (4) Property used for commercial or for-profit purposes is

presumed not to be used for nonprofit charitable purposes.

     (5) Property exempt under subsection (1) or (2) is not exempt

from the following taxes:

     (a) Taxes levied for school operating purposes under section

1211 of the revised school code, 1976 PA 451, MCL 380.1211.

     (b) Taxes levied under section 3 of the state education tax

act, 1993 PA 331, MCL 211.903.