March 7, 2006, Introduced by Reps. Hune, Stakoe, Tobocman, Marleau, Huizenga, Leland, Gaffney, Sheltrown and Kolb 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 section 7jj.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7jj. (1) Beginning December 31, 2005, 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. Supportive housing property exempt under
this section is subject to the specific tax levied under the
supportive housing property specific tax act.
(2) 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 until any appeal or
audit period under this act has expired, 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.
(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, "supportive housing property"
means real property certified as supportive housing property under
chapter 3B of the state housing development authority act of 1966,
1966 PA 346, MCL 125.1459 to 125.1459b.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5834(request no.
00696'05 a).
(b) Senate Bill No.____ or House Bill No. 5835(request no.
00696'05 b).