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.