HB-5182, As Passed Senate, December 17, 2014

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5182

     A bill to amend 1893 PA 206, entitled

"The general property tax act,"

by amending section 7kk (MCL 211.7kk), as added by 2006 PA 612.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 7kk. (1) The Before December 31, 2014, the governing body

of a local tax collecting unit may adopt a resolution to exempt

from the collection of taxes under this act eligible nonprofit

housing property. The clerk of the local tax collecting unit shall

notify in writing the assessor of the local tax collecting unit and

the legislative body of each taxing unit that levies ad valorem

property taxes in the local tax collecting unit. Before acting on

the resolution, 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.

     (2) The exemption under this section subsection (1) is

effective on the December 31 immediately succeeding the adoption of

the resolution by the governing body of the local tax collecting

unit or the issuance of a building permit for the eligible

nonprofit housing property, whichever is later. The exemption under

this section shall continue in effect for 2 years, until the

eligible nonprofit housing property is occupied by a low-income

person under a lease agreement, or until there is a transfer of

ownership of the eligible nonprofit housing property, whichever

occurs first. A copy of the resolution shall be filed with the

state tax commission.

     (3) Beginning December 31, 2014, a charitable nonprofit

housing organization that owns eligible nonprofit housing property

may apply to the state tax commission for an exemption from the

collection of taxes under this act on a form prescribed by the

department of treasury. The state tax commission, after

consultation with the state treasurer or his or her designee, shall

grant or deny the exemption within 60 days of receipt of the

application for exemption and shall send written notification of

its determination to the local tax collecting unit and to the

charitable nonprofit housing organization. An exemption under this

subsection is effective beginning December 31 in the year in which

the state tax commission approves the exemption.

     (4) Subject to subsection (6), for eligible nonprofit housing

property that is, when transferred to the charitable nonprofit

housing organization, a residential building lot, an exemption

under subsection (3) shall continue in effect for the lesser of 5

years or until either of the following occurs:

     (a) The eligible nonprofit housing property is occupied by a

low-income person under a lease agreement.

     (b) The eligible nonprofit housing property is transferred by

the charitable nonprofit housing organization.

     (5) Subject to subsection (6), for eligible nonprofit housing

property that is not a residential building lot, an exemption under

subsection (3) shall continue in effect for the lesser of 3 years

or until either of the following occurs:

     (a) The eligible nonprofit housing property is occupied by a

low-income person under a lease agreement.

     (b) The eligible nonprofit housing property is transferred by

the charitable nonprofit housing organization.

     (6) An exemption under subsection (3) shall be reduced by the

number of years in which the eligible nonprofit housing property

was exempt under subsection (1).

(7) (3) As used in this section:

     (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 a residential

building lot, a single family dwelling, or a duplex, or a multiunit

building with not more than 4 individual units, owned by a

charitable nonprofit housing organization, the ownership of which

the charitable nonprofit housing organization intends to transfer

to a low-income person to be used as that low-income person's

principal residence after construction of a single family dwelling,

duplex, or multiunit building on the residential building lot is

completed or the renovation of the single family dwelling, or

duplex, or multiunit building is completed. to be used as that low-

income person's principal residence.

     (c) "Family income" and "statewide median gross income" mean

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 80% 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.

     (e) "Principal residence" means property exempt as a principal

residence under section 7cc.

     (f) "Residential building lot" includes real property on which

is located a structure that will be torn down within 1 year of

transfer to the charitable nonprofit housing organization.

     (g) "Transferred" means a transfer of ownership as defined in

section 27a.