December 7, 2005, Introduced by Reps. Hune and Gaffney and referred to the Committee on Local Government and Urban Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.157) by adding sections 7jj and 9k.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7jj. (1) Beginning December 31, 2002, supportive housing
property is exempt from the collection of taxes under this act if
an owner of that supportive housing property claims an exemption as
provided in this section.
(2) For taxes levied after December 31, 2002 and before the
effective date of the amendatory act that added this section, an
owner of supportive housing property may claim an exemption under
this section by filing an affidavit on or before December 31 in the
year in which the amendatory act that added this section is
effective with the local tax collecting unit in which the
supportive housing property is located. For taxes levied on and
after the effective date of the amendatory act that added this
section, an owner of supportive housing property may claim an
exemption under this section by filing an affidavit on or before
December 31 with the local tax collecting unit in which the
supportive housing property is located. The affidavit shall state
that the property is owned and occupied as supportive housing
property on the date that the affidavit is signed. The affidavit
shall be on a form prescribed by the department of treasury. One
copy of the affidavit shall be retained by the owner, 1 copy shall
be retained by the local tax collecting unit, and 1 copy shall be
forwarded to the department of treasury.
(3) Upon receipt of an affidavit filed under subsection (2)
and unless the claim is denied under this section, the assessor
shall exempt the supportive housing property from the collection of
taxes under this act until December 31 of the year in which the
property is no longer supportive housing property. If granting the
exemption under this section results in an overpayment of the tax,
a rebate, including any interest paid, shall be made to the
taxpayer by the local tax collecting unit if the local tax
collecting unit has possession of the tax roll or by the county
treasurer if the county has possession of the tax roll within 30
days of the date the exemption is granted. The rebate shall be
without interest.
(4) Not more than 90 days after exempted property is no longer
supportive housing property, an owner shall rescind the claim of
exemption by filing with the local tax collecting unit a rescission
form prescribed by the department of treasury. An owner who fails
to file a rescission as required by this subsection is subject to a
penalty of $5.00 per day for each separate failure beginning after
the 90 days have elapsed, up to a maximum of $200.00. This penalty
shall be collected under 1941 PA 122, MCL 205.1 to 205.31, and
shall be deposited in the state school aid fund established in
section 11 of article IX of the state constitution of 1963. This
penalty may be waived by the department of treasury.
(5) If the assessor of the local tax collecting unit believes
that the property for which an exemption is claimed is not
supportive housing property, the assessor may deny a new or
existing claim by notifying the owner and the department of
treasury in writing of the reason for the denial and advising the
owner that the denial may be appealed to the state tax commission
within 35 days after the date of the notice. The assessor may deny
a claim for exemption for the current year and for the 3
immediately preceding calendar years. If the assessor denies an
existing claim for exemption, the assessor shall remove the
exemption of the property and, if the tax roll is in the local tax
collecting unit's possession, amend the tax roll to reflect the
denial and the local treasurer shall within 30 days of the date of
the denial issue a corrected tax bill for any additional taxes with
interest and penalties computed from the date the taxes were last
payable without interest or penalty. If the tax roll is in the
county treasurer's possession, the tax roll shall be amended to
reflect the denial and the county treasurer shall within 30 days of
the date of the denial prepare and submit a supplemental tax bill
for any additional taxes, together with interest and penalties
computed from the date the taxes were last payable without interest
or penalty. Taxes levied in a corrected or supplemental tax bill
shall be returned as delinquent on the March 1 in the year
immediately succeeding the year in which the corrected or
supplemental tax bill is issued. However, if the property has been
transferred to a bona fide purchaser before additional taxes were
billed to the seller as a result of the denial of a claim for
exemption, the taxes, interest, and penalties shall not be a lien
on the property and shall not be billed to the bona fide purchaser,
and the local tax collecting unit if the local tax collecting unit
has possession of the tax roll or the county treasurer if the
county has possession of the tax roll shall notify the department
of treasury of the amount of tax due, interest, and penalties
through the date of that notification. The department of treasury
shall then assess the owner who claimed the exemption under this
section for the tax, interest, and penalties accruing as a result
of the denial of the claim for exemption, if any, as for unpaid
taxes provided under 1941 PA 122, MCL 205.1 to 205.31, and shall
deposit any tax, penalty, and interest collected into the state
school aid fund. The denial shall be made on a form prescribed by
the department of treasury.
(6) The department of treasury shall make available the
affidavit forms and the forms to rescind an exemption, which may be
on the same form, to all city and township assessors, county
equalization officers, county registers of deeds, and closing
agents.
(7) As used in this section:
(a) "Developmental disability" means that term as defined in
section 100a(21) of the mental health code, 1974 PA 258, MCL
330.1100a.
(b) "Functional impairment" means that term as defined in
section 100b(5) of the mental health code, 1974 PA 258, MCL
330.1100b.
(c) "Household income" means that term as defined in section
508 of the income tax act of 1967, 1967 PA 281, MCL 206.508.
(d) "Low income" means household income of not more than that
which would be received in supplemental security income under title
XVI of the social security act, 42 USC 1381 to 1382j and 1383 to
1383f.
(e) "Moderate income" means less than 50% of the area median
gross income.
(f) "Supportive housing property" means real property owned by
a nonprofit charitable organization exempt under section 501(c)(3)
of the internal revenue code, 26 USC 501, that meets all of the
following conditions:
(i) The charitable nonprofit organization purchased the
supportive housing property with funding from the Michigan state
housing development authority under the state housing development
authority act of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c.
(ii) The supportive housing property is located in a city or
township with a population of more than 7,000 and less than 35,000
that is located in a county with a population of more than 150,000
and less than 160,000.
(iii) The supportive housing property has fewer than 35 units
available for eligible tenants.
(iv) The supportive housing property provides housing solely to
low and moderate income persons with a developmental disability or
functional impairment.
(v) The charitable nonprofit organization is subject to a
regulatory agreement with the Michigan state housing development
authority under the state housing development authority act of
1966, 1966 PA 346, MCL 125.1401 to 125.1499c, the subject of which
includes, but is not limited to, all of the following:
(A) The amount that the charitable nonprofit organization may
charge tenants for rent.
(B) The ongoing support services that the charitable nonprofit
organization must provide to eligible tenants, including, but not
limited to, nutritional counseling, transportation, financial
management, and case management with respect to accessing health
and social services.
(C) The minimum number of units that the charitable nonprofit
organization shall provide to low income persons and the minimum
number that the charitable nonprofit organization shall provide to
moderate income persons.
(vi) The charitable nonprofit organization is licensed to
solicit charitable contributions under the charitable organizations
and solicitations act, 1975 PA 169, MCL 400.271 to 400.294.
(vii) The charitable nonprofit organization has been designated
as a community housing development organization by the Michigan
state housing development authority under the state housing
development authority act of 1966, 1966 PA 346, MCL 125.1401 to
125.1499c.
Sec. 9k. Personal property owned by a nonprofit charitable
organization exempt under section 501(c)(3) of the internal revenue
code, 26 USC 501, that is located in supportive housing property
exempt under section 7jj is exempt from the collection of taxes
under this act.
Enacting section 1. This amendatory act is retroactive and is
effective for taxes levied after December 31, 2002.