HB-6007, As Passed House, November 29, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 6007

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending sections 24, 25, 27, 34c, and 53 (MCL 211.24, 211.25,

211.27, 211.34c, and 211.53), section 24 as amended by 2002 PA 620,

section 27 as amended by 2010 PA 340, section 34c as amended by

2011 PA 320, and section 53 as amended by 1983 PA 24, and by adding

sections 7oo, 7pp, and 7qq; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 7oo. Low grade iron ore and low grade iron ore mining

property subject to taxation under 1951 PA 77, MCL 211.621 to

211.626, or iron ore or ore property subject to taxation under 1963

PA 68, 207.271 to 207.279, are exempt from the collection of taxes

under this act.

Sec. 7pp. Beginning December 31, 2012, any mineral located at

an open mine is exempt from the collection of taxes under this act.

The exemption under this section does not apply to the surface

property, rights in the surface property, surface improvements, or

personal property at that open mine. As used in this section,

"mineral" and "open mine" mean those terms as defined in the

nonferrous metallic minerals extraction severance tax act.

Sec. 7qq. Any mineral-producing property subject to the

mineral severance tax under the nonferrous metallic minerals

extraction severance tax act is exempt from the collection of taxes

under this act. As used in this section, "mineral-producing

property" and "mineral severance tax" mean those terms as defined

in the nonferrous metallic minerals extraction severance tax act.

Sec. 24. ~~(1)~~ On or before the first Monday in March in each

year, the assessor shall make and complete an assessment roll, upon

which he or she shall set down all of the following:

(a) The name and address of every person liable to be taxed in

the local tax collecting unit with a full description of all the

real property liable to be taxed. If the name of the owner or

occupant of any tract or parcel of real property is known, the

assessor shall enter the name and address of the owner or occupant

opposite to the description of the property. If unknown, the real

property described upon the roll shall be assessed as "owner

unknown". All contiguous subdivisions of any section that are owned

by 1 person, firm, corporation, or other legal entity and all

unimproved lots in any block that are contiguous and owned by 1

person, firm, corporation, or other legal entity shall be assessed

as 1 parcel, unless demand in writing is made by the owner or

occupant to have each subdivision of the section or each lot

assessed separately. However, failure to assess contiguous parcels

as entireties does not invalidate the assessment as made. Each

description shall show as near as possible the number of acres

contained in it, as determined by the assessor. It is not necessary

for the assessment roll to specify the quantity of land comprised

in any town, city, or village lot.

(b) The assessor shall estimate, according to his or her best

information and judgment, the true cash value and assessed value of

every parcel of real property and set the assessed value down

opposite the parcel.

of every parcel of real property and set that value down opposite

the parcel.

(d) The assessor shall determine the percentage of value of

every parcel of real property that is exempt from the tax levied by

a local school district for school operating purposes to the extent

provided under section 1211 of the revised school code, 1976 PA

451, MCL 380.1211, and set that percentage of value down opposite

the parcel.

(e) The assessor shall determine the date of the last transfer

of ownership of every parcel of real property occurring after

December 31, 1994 and set that date down opposite the parcel.

(f) The assessor shall estimate the true cash value of all the

personal property of each person, and set the assessed value and

tentative taxable value down opposite the name of the person. In

determining the property to be assessed and in estimating the value

of that property, the assessor is not bound to follow the

statements of any person, but shall exercise his or her best

judgment. For taxes levied after December 31, 2003, the assessor

shall separately state the assessed value and tentative taxable

value of any leasehold improvements.

(g) Property assessed to a person other than the owner shall

be assessed separately from the owner's property and shall show in

what capacity it is assessed to that person, whether as agent,

guardian, or otherwise. Two or more persons not being copartners,

owning personal property in common, may each be assessed severally

for each person's portion. Undivided interests in lands owned by

tenants in common, or joint tenants not being copartners, may be

assessed to the owners.

~~(2) The state geologist, or his or her duly authorized deputy,~~

~~shall determine, according to his or her best information and~~

~~judgment, the true cash value of the metallic mining properties and~~

~~mineral rights consisting of metallic resources that are either~~

~~producing, developed, or have a known commercial mineral value,~~

~~including surface rights and personal property that may be used in~~

~~the operation or development of the property assessed, or any~~

~~stockpile of ore or mineral stored on the surface. For the purpose~~

~~of encouraging the exploration and development of metallic mineral~~

~~resources, metallic mineral ore newly discovered or proven in the~~

~~ground and not part of the property of an operating mine shall be~~

~~exempt from the taxes collected under this act for a maximum period~~

~~of 10 years or until the time it becomes part of the property of an~~

~~operating mine or it in itself becomes an operating mine. Metallic~~

~~mineral ore newly discovered or proven in the ground and part of~~

~~the property of an operating mine shall be exempt from taxes~~

~~collected under this act until it, in combination with previously~~

~~discovered metallic mineral ore of the operating mine, comes into a~~

~~10-year recovery period of the mine as determined by the average~~

~~normal annual rate of extraction of the mine.~~

~~(3) An operating mine shall be defined to be an operating mine~~

~~as of the date of starting of a shaft, stripping of overburden, or~~

~~rehabilitation, or an abandoned or idle mine closed for not less~~

~~than 2 years. Ore shall not enjoy more than 10 years' exemption~~

~~from taxation. This section does not exempt from the taxes~~

~~collected under this act ore reserves proven as of April 1, 1947.~~

~~It is the intent of this act that mineral properties shall be~~

~~valued and assessed in the future for ad valorem taxes according to~~

~~the formula used in the valuation of mineral properties before the~~

~~effective date of this act. It is the intent of this act that no~~

~~metallic mineral ore shall be exempt more than 10 years because of~~

~~the application of this act and if at any time it becomes evident~~

~~that such is the case, the state tax commission shall determine the~~

~~value of this untaxed ore and place this valuation on the proper~~

~~tax roll. The state geologist shall report his or her determination~~

~~of the true cash value of the mineral properties to the state tax~~

~~commission on or before February 10 of each year. The state tax~~

~~commission shall assess the mineral properties containing 20% or~~

~~more of natural iron per ton of ore in conformity and uniformity~~

~~with all other property within the assessing district. The state~~

~~tax commission shall assess all other metallic mineral properties~~

~~at the value certified by the state geologist. The state tax~~

~~commission, as early as is practicable before February 20, shall~~

~~certify the assessment of the property to the assessor of the~~

~~township or city in which the property is situated, who shall for~~

~~the mineral properties and mineral rights that are owned separate~~

~~from the surface rights on the property assess each to the owner at~~

~~the valuation certified to him or her. However, an adjustment to~~

~~the value certified by the state tax commission may be made by the~~

~~assessor of the township or city to reflect any general adjustment~~

~~of assessed valuation from the immediately preceding year not~~

~~included in the state tax commission computation. The assessor~~

~~shall determine the true cash value of the surface rights and~~

~~assess the value of the surface rights to the owner. The assessment~~

~~upon the metallic mining properties and mineral rights may be~~

~~altered from year to year regardless of whether any previous~~

~~assessment has been reviewed by the state tax commission. The~~

~~assessor or the owner of any interest in the property assessed may~~

~~appeal the assessment and valuation of the property as determined~~

~~by the board of review to the state tax commission which shall~~

~~review the assessment and valuation as provided in section 152.~~

Sec. 25. (1) The description of real property may be as

follows:

(a) If the land to be assessed is an entire section, it may be

described by the number of the section, township, and range.

(b) If the tract is a subdivision of a section authorized by

the United States for the sale of public lands, it may be described

by the designation of the subdivision, with the number of the

section, township, and range.

described as a distinct part of the subdivision, or in a manner as

will definitely describe it.

(d) In case of land platted or laid out as a town, city, or

village, or as an addition to a town, city, or village, it shall be

described by reference to the plat and by the number of the lots

and blocks ~~thereof~~ of that town, city, or village.

(e) When 2 or more parcels of land adjoin and belong to the

same owner or owners, they may be assessed by 1 valuation if

permission is obtained from the owner or owners. The assessing

authority shall send a notice of intent to assess the parcels by 1

valuation to the owner or owners. Permission shall be considered

obtained if there is no negative response within 30 days following

the notice of intent.

(f) It ~~shall be~~ is sufficient to describe the real property

assessed upon a roll and in other proceedings under this act in the

manner ~~heretofore~~ in use by initials, letters, abbreviations, and

figures.

~~(g) In the case of the separate assessment of mineral rights~~

~~it shall be sufficient to describe the same as provided in this~~

~~section followed by the term "mineral rights only", and it shall be~~

~~sufficient description of the surface rights which shall include~~

~~all other rights in the property except mineral rights, as defined~~

~~in sections 6a and 6b, to describe the property as provided in this~~

~~section followed by the term "surface rights only".~~

(2) The descriptions of real property of townships shall be

arranged in the following manner:

(a) Acreage descriptions in numerical order of section

beginning with section 1 of each township; a surveyed township

being listed fully before a description of a second surveyed

township, if any, is entered.

Lands included in an unincorporated village may be arranged

without separation as to sections within a township.

(b) Government lots in a section shall be listed numerically.

private claim is located in the same township, the description of

each claim shall be listed numerically.

(3) The descriptions of real property of islands shall be

arranged and listed either by number or name of island.

Sec. 27. (1) As used in this act, "true cash value" means the

usual selling price at the place where the property to which the

term is applied is at the time of assessment, being the price that

could be obtained for the property at private sale, and not at

auction sale except as otherwise provided in this section, or at

forced sale. The usual selling price may include sales at public

auction held by a nongovernmental agency or person if those sales

have become a common method of acquisition in the jurisdiction for

the class of property being valued. The usual selling price does

not include sales at public auction if the sale is part of a

liquidation of the seller's assets in a bankruptcy proceeding or if

the seller is unable to use common marketing techniques to obtain

the usual selling price for the property. A sale or other

disposition by this state or an agency or political subdivision of

this state of land acquired for delinquent taxes or an appraisal

made in connection with the sale or other disposition or the value

attributed to the property of regulated public utilities by a

governmental regulatory agency for rate-making purposes is not

controlling evidence of true cash value for assessment purposes. In

determining the true cash value, the assessor shall also consider

the advantages and disadvantages of location; quality of soil;

zoning; existing use; present economic income of structures,

including farm structures; present economic income of land if the

land is being farmed or otherwise put to income producing use;

quantity and value of standing timber; water power and privileges,

~~; and mines, minerals,~~ quarries, or other valuable deposits not

otherwise exempt known to be available in the land and their value.

In determining the true cash value of personal property owned by an

electric utility cooperative, the assessor shall consider the

number of kilowatt hours of electricity sold per mile of

distribution line compared to the average number of kilowatt hours

of electricity sold per mile of distribution line for all electric

utilities.

(2) The assessor shall not consider the increase in true cash

value that is a result of expenditures for normal repairs,

replacement, and maintenance in determining the true cash value of

property for assessment purposes until the property is sold. For

the purpose of implementing this subsection, the assessor shall not

increase the construction quality classification or reduce the

effective age for depreciation purposes, except if the appraisal of

the property was erroneous before nonconsideration of the normal

repair, replacement, or maintenance, and shall not assign an

economic condition factor to the property that differs from the

economic condition factor assigned to similar properties as defined

by appraisal procedures applied in the jurisdiction. The increase

in value attributable to the items included in subdivisions (a) to

(o) that is known to the assessor and excluded from true cash value

shall be indicated on the assessment roll. This subsection applies

only to residential property. The following repairs are considered

normal maintenance if they are not part of a structural addition or

completion:

(a) Outside painting.

(b) Repairing or replacing siding, roof, porches, steps,

sidewalks, or drives.

(d) Replacing awnings.

(e) Adding or replacing gutters and downspouts.

(f) Replacing storm windows or doors.

(g) Insulating or weatherstripping.

(h) Complete rewiring.

(i) Replacing plumbing and light fixtures.

(j) Replacing a furnace with a new furnace of the same type or

replacing an oil or gas burner.

(k) Repairing plaster, inside painting, or other redecorating.

(l) New ceiling, wall, or floor surfacing.

(m) Removing partitions to enlarge rooms.

(n) Replacing an automatic hot water heater.

(o) Replacing dated interior woodwork.

(3) A city or township assessor, a county equalization

department, or the state tax commission before utilizing real

estate sales data on real property purchases, including purchases

by land contract, to determine assessments or in making sales ratio

studies to assess property or equalize assessments shall exclude

from the sales data the following amounts allowed by subdivisions

(a), (b), and (c) to the extent that the amounts are included in

the real property purchase price and are so identified in the real

estate sales data or certified to the assessor as provided in

subdivision (d):

(a) Amounts paid for obtaining financing of the purchase price

of the property or the last conveyance of the property.

(b) Amounts attributable to personal property that were

included in the purchase price of the property in the last

conveyance of the property.

last conveyance of the property. The legislature may require local

units of government, including school districts, to submit reports

of revenue lost under subdivisions (a) and (b) and this subdivision

so that the state may reimburse those units for that lost revenue.

(d) The purchaser of real property, including a purchaser by

land contract, may file with the assessor of the city or township

in which the property is located 2 copies of the purchase agreement

or of an affidavit that identifies the amount, if any, for each

item listed in subdivisions (a) to (c). One copy shall be forwarded

by the assessor to the county equalization department. The

affidavit shall be prescribed by the state tax commission.

(4) As used in subsection (1), "present economic income" means

for leased or rented property the ordinary, general, and usual

economic return realized from the lease or rental of property

negotiated under current, contemporary conditions between parties

equally knowledgeable and familiar with real estate values. The

actual income generated by the lease or rental of property is not

the controlling indicator of its true cash value in all cases. This

subsection does not apply to property subject to a lease entered

into before January 1, 1984 for which the terms of the lease

governing the rental rate or tax liability have not been

renegotiated after December 31, 1983. This subsection does not

apply to a nonprofit housing cooperative subject to regulatory

agreements between the state or federal government entered into

before January 1, 1984. As used in this subsection, "nonprofit

cooperative housing corporation" means a nonprofit cooperative

housing corporation that is engaged in providing housing services

to its stockholders and members and that does not pay dividends or

interest upon stock or membership investment but that does

distribute all earnings to its stockholders or members.

(5) Except as otherwise provided in subsection (6), the

purchase price paid in a transfer of property is not the

presumptive true cash value of the property transferred. In

determining the true cash value of transferred property, an

assessing officer shall assess that property using the same

valuation method used to value all other property of that same

classification in the assessing jurisdiction. As used in this

subsection and subsection (6), "purchase price" means the total

consideration agreed to in an arms-length transaction and not at a

forced sale paid by the purchaser of the property, stated in

dollars, whether or not paid in dollars.

(6) The purchase price paid in a transfer of eligible

nonprofit housing property from a charitable nonprofit housing

organization to a low-income person that occurs after December 31,

2010 is the presumptive true cash value of the eligible nonprofit

housing property transferred. In the year immediately succeeding

the year in which the transfer of eligible nonprofit housing

property occurs and each year thereafter, the taxable value of the

eligible nonprofit housing property shall be adjusted as provided

under section 27a. As used in this subsection:

(a) "Charitable nonprofit housing organization" means a

charitable nonprofit organization the primary purpose of which is

the construction or renovation of residential housing for

conveyance to a low-income person.

(b) "Eligible nonprofit housing property" means property owned

by a charitable nonprofit housing organization, the ownership of

which the charitable nonprofit housing organization intends to

transfer to a low-income person after construction or renovation of

the property is completed.

those terms as defined in section 11 of the state housing

development authority act of 1966, 1966 PA 346, MCL 125.1411.

(d) "Low-income person" means a person with a family income of

not more than 60% of the statewide median gross income who is

eligible to participate in the charitable nonprofit housing

organization's program based on criteria established by the

charitable nonprofit housing organization.

(7) For purposes of a statement submitted under section 19,

the true cash value of a standard tool is the net book value of

that standard tool as of December 31 in each tax year as determined

using generally accepted accounting principles in a manner

consistent with the established depreciation method used by the

person submitting that statement. The net book value of a standard

tool for federal income tax purposes is not the presumptive true

cash value of that standard tool. As used in this subsection,

"standard tool" means that term as defined in section 9b.

Sec. 34c. (1) Not later than the first Monday in March in each

year, the assessor shall classify every item of assessable property

according to the definitions contained in this section. Following

the March board of review, the assessor shall tabulate the total

number of items and the valuations as approved by the board of

review for each classification and for the totals of real and

personal property in the local tax collecting unit. The assessor

shall transmit to the county equalization department and to the

state tax commission the tabulation of assessed valuations and

other statistical information the state tax commission considers

necessary to meet the requirements of this act and 1911 PA 44, MCL

209.1 to 209.8.

(2) The classifications of assessable real property are

described as follows:

(a) Agricultural real property includes parcels used partially

or wholly for agricultural operations, with or without buildings.

For taxes levied after December 31, 2002, agricultural real

property includes buildings on leased land used for agricultural

operations. Property shall not lose its classification as

agricultural real property as a result of an owner or lessee of

that property implementing a wildlife risk mitigation action plan.

As used in this subdivision:

(i) "Agricultural operations" means the following:

(A) Farming in all its branches, including cultivating soil.

(B) Growing and harvesting any agricultural, horticultural, or

floricultural commodity.

(D) Raising livestock, bees, fish, fur-bearing animals, or

poultry, including operating a game bird hunting preserve licensed

under part 417 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.41701 to 324.41712, and also

including farming operations that harvest cervidae on site where

not less than 60% of the cervidae were born as part of the farming

operation. As used in this subparagraph, "livestock" includes, but

is not limited to, cattle, sheep, new world camelids, goats, bison,

privately owned cervids, ratites, swine, equine, poultry,

aquaculture, and rabbits. Livestock does not include dogs and cats.

(E) Raising, breeding, training, leasing, or boarding horses.

(F) Turf and tree farming.

(G) Performing any practices on a farm incident to, or in

conjunction with, farming operations. A commercial storage,

processing, distribution, marketing, or shipping operation is not

part of agricultural operations.

(ii) "Project" means certain risk mitigating measures, which

may include, but are not limited to, the following:

(A) Making it difficult for wildlife to access feed by storing

livestock feed securely, restricting wildlife access to feeding and

watering areas, and deterring or reducing wildlife presence around

livestock feed by storing feed in an enclosed barn, wrapping bales

or covering stacks with tarps, closing ends of bags, storing grains

in animal-proof containers or bins, maintaining fences, practicing

small mammal and rodent control, or feeding away from wildlife

cover.

(B) Minimizing wildlife access to livestock feed and water by

feeding livestock in an enclosed area, feeding in open areas near

buildings and human activity, removing extra or waste feed when

livestock are moved, using hay feeders to reduce waste, using

artificial water systems to help keep livestock from sharing water

sources with wildlife, fencing off stagnant ponds, wetlands, or

areas of wildlife habitats that pose a disease risk, and keeping

mineral feeders near buildings and human activity or using devices

that restrict wildlife usage.

(iii) "Wildlife risk mitigation action plan" means a written

plan consisting of 1 or more projects to help reduce the risks of a

communicable disease spreading between wildlife and livestock that

is approved by the department of agriculture and rural development

under the animal industry act, 1988 PA 466, MCL 287.701 to 287.745.

(b) Commercial real property includes the following:

(i) Platted or unplatted parcels used for commercial purposes,

whether wholesale, retail, or service, with or without buildings.

(ii) Parcels used by fraternal societies.

(iii) Parcels used as golf courses, boat clubs, ski areas, or

apartment buildings with more than 4 units.

(iv) For taxes levied after December 31, 2002, buildings on

leased land used for commercial purposes.

more than 5 acres without buildings, or more than 15 acres with a

market value in excess of its value in use. Developmental real

property may include farm land or open space land adjacent to a

population center, or farm land subject to several competing

valuation influences.

(d) Industrial real property includes the following:

(i) Platted or unplatted parcels used for manufacturing and

processing purposes, with or without buildings.

(ii) Parcels used for utilities sites for generating plants,

pumping stations, switches, substations, compressing stations,

warehouses, rights-of-way, flowage land, and storage areas.

(iii) Parcels used for removal or processing of gravel, stone,

or mineral ores. ~~, whether valued by the local assessor or by the~~

~~state geologist.~~

(iv) For taxes levied after December 31, 2002, buildings on

leased land used for industrial purposes.

(v) For taxes levied after December 31, 2002, buildings on

leased land for utility purposes.

(e) Residential real property includes the following:

(i) Platted or unplatted parcels, with or without buildings,

and condominium apartments located within or outside a village or

city, which are used for, or probably will be used for, residential

purposes.

(ii) Parcels that are used for, or probably will be used for,

recreational purposes, such as lake lots and hunting lands, located

in an area used predominantly for recreational purposes.

(iii) For taxes levied after December 31, 2002, a home, cottage,

or cabin on leased land, and a mobile home that would be assessable

as real property under section 2a except that the land on which it

is located is not assessable because the land is exempt.

(f) Timber-cutover real property includes parcels that are

stocked with forest products of merchantable type and size, cutover

forest land with little or no merchantable products, and marsh

lands or other barren land. However, when a typical purchase of

this type of land is for residential or recreational uses, the

classification shall be changed to residential.

(3) The classifications of assessable personal property are

described as follows:

(a) Agricultural personal property includes any agricultural

equipment and produce not exempt by law.

(b) Commercial personal property includes the following:

(i) All equipment, furniture, and fixtures on commercial

parcels, and inventories not exempt by law.

(ii) All outdoor advertising signs and billboards.

(iii) Well drilling rigs and other equipment attached to a

transporting vehicle but not designed for operation while the

vehicle is moving on the highway.

(iv) Unlicensed commercial vehicles or commercial vehicles

licensed as special mobile equipment or by temporary permits.

(i) All machinery and equipment, furniture and fixtures, and

dies on industrial parcels, and inventories not exempt by law.

(ii) Personal property of mining companies. ~~valued by the state~~

~~geologist.~~

(d) For taxes levied before January 1, 2003, residential

personal property includes a home, cottage, or cabin on leased

land, and a mobile home that would be assessable as real property

under section 2a except that the land on which it is located is not

assessable because the land is exempt.

(e) Utility personal property includes the following:

(i) Electric transmission and distribution systems, substation

equipment, spare parts, gas distribution systems, and water

transmission and distribution systems.

(ii) Oil wells and allied equipment such as tanks, gathering

lines, field pump units, and buildings.

(iii) Inventories not exempt by law.

(iv) Gas wells with allied equipment and gathering lines.

(v) Oil or gas field equipment stored in the open or in

warehouses such as drilling rigs, motors, pipes, and parts.

(vi) Gas storage equipment.

(vii) Transmission lines of gas or oil transporting companies.

(4) For taxes levied before January 1, 2003, buildings on

leased land of any classification are improvements where the owner

of the improvement is not the owner of the land or fee, the value

of the land is not assessed to the owner of the building, and the

improvement has been assessed as personal property pursuant to

section 14(6).

(5) If the total usage of a parcel includes more than 1

classification, the assessor shall determine the classification

that most significantly influences the total valuation of the

parcel.

(6) An owner of any assessable property who disputes the

classification of that parcel shall notify the assessor and may

protest the assigned classification to the March board of review.

An owner or assessor may appeal the decision of the March board of

review by filing a petition with the state tax commission not later

than June 30 in that tax year. The state tax commission shall

arbitrate the petition based on the written petition and the

written recommendations of the assessor and the state tax

commission staff. An appeal may not be taken from the decision of

the state tax commission regarding classification complaint

petitions and the state tax commission's determination is final and

binding for the year of the petition.

(7) The department of treasury may appeal the classification

of any assessable property to the residential and small claims

division of the Michigan tax tribunal not later than December 31 in

the tax year for which the classification is appealed.

(8) This section shall not be construed to encourage the

assessment of property at other than the uniform percentage of true

cash value prescribed by this act.

(9) The assessor of each city or township in which is located

property that is subject to payment in lieu of taxes under subpart

14 of part 21 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.2152 to 324.2154, shall place that

property on an assessment roll that is separate from the assessment

roll prepared under section 24. For purposes of calculating the

debt limitation imposed by section 11 of article VII of the state

constitution of 1963, the separate assessment roll for property

that is subject to payment in lieu of taxes under subpart 14 of

part 21 of the natural resources and environmental protection act,

1994 PA 451, MCL 324.2152 to 324.2154, required by this subsection

shall be combined with the assessment roll prepared under section

24.

Sec. 53. (1) A person may pay the taxes or special

assessments, any 1 of the several taxes or special assessments, a

portion of the taxes or special assessments that is specified by

the charter of a local collecting unit or by an ordinance or

resolution adopted by the governing body of the local collecting

unit, or if a specification is not made by an ordinance,

resolution, or the charter of a local collecting unit a portion of

the taxes or special assessments that is approved by the treasurer

of the local collecting unit, on any parcel or description of land,

or on any undivided share thereof, and the treasurer shall cause to

be noted across the face of the receipt in an indelible manner any

portion of the taxes or special assessments remaining unpaid. When

payment of the taxes or special assessments on any parcel or

description of land, or on any undivided share thereof, is made to

any local collecting treasurer, the treasurer shall place or cause

to be placed upon the face of the receipt the following

certificate: "I hereby certify that application was made to pay all

taxes and special assessments due and payable at this office on the

description shown in this receipt

except.............................................................

......................

(Signed)................... Treas."

(2) Except as provided in subsection (3), a person owning an

undivided share or other part or parcel of real property assessed

in 1 description may pay on the part thus owned, by paying in any

manner provided by subsection (1) an amount having the same

relation to the whole tax or special assessment as the value of the

part on which payment is made has to the value of the whole parcel.

The application to pay the taxes or special assessments on any part

of any parcel or description of land shall be accompanied by a

statement from the assessing officer of the township or city in

which the lands are situated showing the valuation of the part and

of the several parts of the parcel or description of land, and the

assessing officer shall make the valuations and furnish a statement

at the request of any person who presents to the assessing officer

a correct description and division of the parcel or description of

land to be divided. The person making the payment shall accurately

describe the part or share on which he or she makes payment, and

the receipt given, and the record of the receiving officer shall

show the description, and by whom paid; and in case of the sale of

the remaining part or share for nonpayment of taxes or special

assessments, he or she may purchase the same in like manner as any

disinterested person could.

(3) If an assessing officer has reason to believe that a

violation of the ~~subdivision control act of 1967, Act No. 288 of~~

~~the Public Acts of 1967, being sections 560.101 to 560.293 of the~~

~~Michigan Compiled Laws,~~ land division act, 1967 PA 288, MCL 560.101

to 560.293, has occurred with respect to property for which a

division is being requested pursuant to subsection (2) or section

24, or that such a division does not conform with the requirements

of the ~~subdivision control act of 1967, Act No. 288 of the Public~~

~~Acts of 1967,~~ land division act, 1967 PA 288, MCL 560.101 to

560.293, the assessing officer shall not recognize a division of

that property requested pursuant to subsection (2) or section 24 on

the tax roll or assessment roll until he or she refers the

suspected violation or potential nonconformity to the county

prosecuting attorney and gives written notice to the plat section

of the department of commerce, the person requesting the division,

and the person suspected of the violation or potential

nonconformity, of such referral to the prosecuting attorney.

(4) A person having a lien on property may, after 30 days from

the time the tax is payable, pay the taxes thereon, and the same

may be added to his or her lien and recovered with the rate of

interest borne by the lien. A tenant of real estate may pay the

taxes thereon and deduct the taxes from his or her rent, unless

there is an agreement to the contrary. Such payment may be made to

the local collecting treasurer while the tax roll is in his or her

hands, or afterwards to the county treasurer. The receipt given

shall be evidence of payment. Every such receipt shall be

considered to include the certificate prescribed by subsection (1),

and unless otherwise noted thereon, shall be construed as an

application to pay all taxes and special assessments assessed

against the property described therein and then due and payable at

the office of the treasurer issuing the receipt.

(5) A person owning either the mineral rights or surface

rights in property, but not both, which rights are authorized under

this act to be separately assessed, may pay on the rights so owned

as authorized in this section for the payment upon an undivided

share in the property. ~~, except that the state geologist or his or~~

~~her authorized deputy, instead of the local assessing officer,~~

~~shall furnish a statement showing the valuation upon the mineral~~

~~rights.~~

(6) If a part of any parcel of real property is acquired for

highway purposes, it shall be separately assessed and the assessing

officer shall make the allocation of the taxes or special

assessments between the part so acquired and the remainder as may

be considered by the assessing officer to be in conformity with

standard assessment practices. Upon the payment of the taxes or

assessments attributable thereto, the part or parcel of real

property so acquired shall be removed from the tax rolls. The

acceptance by the city, village, township, or county treasurer of

the payment shall not affect, prejudice, or destroy any tax lien on

the remainder of the parcel of real property from which the part is

taken.

(7) For purposes of determining the taxes which are required

to be paid, payment made by means of a property tax credit which is

authorized to be transferred under the income tax act of 1967, ~~Act~~

~~No. 281 of the Public Acts of 1967, as amended, being sections~~

~~206.1 to 206.532 of the Michigan Compiled Laws,~~ 1967 PA 281, MCL

206.1 to 206.713, shall be excluded.

(8) The acceptance of payment of less than the total of the

taxes or special assessments due shall not serve to waive interest

imposed pursuant to law or charter on taxes or special assessments

that are not paid by dates set, pursuant to subsection (1), by law

or charter.

Enacting section 1. Sections 6a and 6b of the general property

tax act, 1893 PA 206, MCL 211.6a and 211.6b, are repealed.

Enacting section 2. This amendatory act does not take effect

unless House Bill No. 6008 of the 96th Legislature is enacted into

law.