April 30, 2014, Introduced by Rep. Schor and referred to the Committee on Tax Policy.
A bill to provide for the exemption of certain property from
certain taxes; to levy and collect a specific tax upon the owners
of certain property; to provide for the disposition of the tax; to
prescribe the powers and duties of certain local government
officials; and to provide penalties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "land
value specific tax act".
Sec. 2. As used in this act:
(a) "Commission" means the state tax commission created by
1927 PA 360, MCL 209.101 to 209.107.
(b) "Eligible real property" means real property that meets
all of the following conditions:
(i) Is classified as commercial real property or industrial
real property under section 34c of the general property tax act,
1893 PA 206, MCL 211.34c.
(ii) Has no buildings or other improvements located on that
real property.
(c) "Taxable value" means the taxable value as determined
under section 27a of the general property tax act, 1893 PA 206, MCL
211.27a.
Sec. 3. (1) Eligible real property is exempt from ad valorem
property taxes collected under the general property tax act, 1893
PA 206, MCL 211.1 to 211.155, if the legislative body of the local
tax collecting unit in which that eligible real property is located
by resolution exempts that eligible real property as provided under
section 7tt of the general property tax act, 1893 PA 206, MCL
211.7tt.
(2) The specific tax levied under this act shall be
administered as provided in the general property tax act, 1893 PA
206, MCL 211.1 to 211.155, and shall be collected at the same time
and in the same manner as taxes collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155.
Sec. 4. The assessor of each local tax collecting unit in
which there is exempt eligible real property shall determine
annually as of December 31 the value and taxable value of each
parcel of exempt eligible real property located in that local tax
collecting unit.
Sec. 5. (1) Except as otherwise provided under this act, there
is levied upon the owner of every parcel of eligible real property
exempt under section 7tt of the general property tax act, 1893 PA
206, MCL 211.7tt, a specific tax to be known as the land value
specific tax.
(2) The amount of the commercial real property specific tax in
each year shall be equal to the eligible real property's taxable
value multiplied by all of the following:
(a) The number of mills levied under the state education tax
act, 1993 PA 331, MCL 211.901 to 211.906.
(b) The number of mills levied under the revised school code,
1976 PA 451, MCL 380.1 to 380.1852.
(c) The number of mills that would be levied by all taxing
units in the local tax collecting unit if the commercial real
property were subject to the collection of taxes under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(d) If approved by the qualified electors of that local tax
collecting unit, an additional millage in an amount that will
reflect the costs of maintaining the vacant property through years
of vacancy, the costs to maintain the vacant property, and other
conditions determined by the municipality.
(3) The land value specific tax is an annual tax, payable at
the same times, in the same installments, and to the same
collecting officer or officers as taxes collected under the general
property tax act, 1893 PA 206, MCL 211.1 to 211.155.
(4) The collecting officer or officers shall disburse the
commercial real property specific tax to and among this state and
cities, townships, villages, school districts, counties, or other
taxing units, at the same times and in the same proportions as
required by law for the disbursement of taxes collected under the
general property tax act, 1893 PA 206, MCL 211.1 to 211.155. If a
millage is levied under subsection (2)(d), the proceeds from that
millage shall be retained by the local tax collecting unit and
shall be deposited in that local tax collecting unit's general
fund.
(5) The collecting officer or officers shall send a copy of
the amount of disbursement made to each taxing unit under this
section to the commission on a form provided by the commission.
Sec. 6. Unpaid land value specific taxes are subject to
collection as provided under the general property tax act, 1893 PA
206, MCL 211.1 to 211.155.
Enacting section 1. This act does not take effect unless
Senate Bill No.____ or House Bill No. 5495 (request no. 03145'13) of
the 97th Legislature is enacted into law.